U.S. Harvest Nears Completion
- Corn harvest was 82% complete, up from 72% last week and remaining ahead of the average pace of 69%.
- Soybeans were reported at 87% harvested versus 83% last week and 83% average.
- Winter wheat planting reached 89% complete, up from 85% last week and compared to the 86% average.
- 71% of the winter wheat crop has emerged which is also in line with the average rate of 70%.
- Winter wheat conditions improved slightly to 43% good to excellent from 41% last week, but are below 57% last year.
- For the last condition report of the season, the cotton crop was rated 37% good to excellent, slipping from 40% last week.
FBN’s Take On What It Means: Harvest progress slowed in parts of the South and eastern Midwest that were affected by rainfall from Hurricane Zeta. However, harvest should finish without too many problems as the weather forecast calls for normal rain and temperatures across the Midwest.
China Wheat Sales Up in Recent State Auctions
- China sold 2.7 million tonnes of wheat from state reserves last week, equalling 68% of the wheat put up for auction.
- Auction rates for wheat had been very low earlier this calendar year - which is not too unusual; for September on average, 8% of what was offered was actually sold whereas for October, the average is 61%.
- The average price for last week’s sale was 2,356 yuan ($352) per tonne, up from 2,316 yuan per tonne in late June.
- China's corn futures hit a record high on October 19 before stabilizing over the last two weeks.
- Wheat prices were also strong, rising to 2,430 yuan per tonne, the highest since February 2019.
FBN’s Take On What It Means: Record high corn prices have encouraged foreign imports and domestic substitution. Wheat auction sales started to pick up in mid-October as feed makers bought the grain to substitute for corn, which was getting increasingly expensive on tightening supplies. While there is no shortage of grain, corn prices in China remain firm and that will support world prices for the near term.
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