Harvest Wraps Up
- Corn harvest has advanced from 91% to 95% complete ahead of the average of 87%.
- The soybean crop was 96% harvested, up from 92% last week and remained above the average of 93%.
- The winter wheat crop rating improved to 46% good to excellent condition, up from 45% last week.
- Winter wheat planting was 96% complete, ahead of the average of 94%.
- 85% of winter wheat has emerged which is in line with the average of 84%.
- Cotton harvest was up to 69% complete, up from 61% last week and ahead of the 64% average.
FBN’s Take On What It Means: There have been some delays at either end of the Corn Belt as Ohio and North Dakota lag, but harvest for corn and beans is coming to a close with few problems. Winter wheat areas in the west continue to be drier than normal, but it will be spring weather that mostly determines the quality of the crop.
Ukraine Grain Prices Rising
- Ukraine accounts for about 16% of global grain trade, and exported nearly 57 million tonnes of grain last year.
- In October, worries about a delay in winter wheat planting pushed Ukraine's export prices to the highest in two years.
- Ukrainian 12.5% protein Black Sea wheat prices were up $4 at $254-$258 per tonne FOB.
- USDA slashed the forecast for Ukraine’s corn crop to 28.5 million tonnes from 35 million previously.
- Corn FOB from Ukraine increased $7 last week to between $238 and $243 per tonne.
FBN’s Take On What It Means: A smaller harvest and high demands from importers, especially China, are keeping Ukraine export prices high. This leaves US corn offers as the most competitive in the world market. However, although the gap has narrowed, US wheat prices still aren’t competitive to most destinations.
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