USDA Corn and Soybean Good to Excellent Ratings Dip
Monday’s USDA Crop Condition report pegged corn ratings at 71% G/E, down 1% from last week. Large producers in the Western Corn Belt like Nebraska, Iowa, and South Dakota saw ratings slide and the Missouri crop continues to worsen, now only 26% G/E. Soybean conditions also fell 3% week on week to 67% G/E. North Dakota and Missouri saw the biggest cuts, 9% and 6% respectively. However, eastern states like Michigan, Ohio, and Indiana saw improvements. The USDA also reported winter wheat harvest as 90% complete, compared to the 5 year average of 92%. Spring wheat is 13% harvested vs 14% for the 5 year average.
Export Sales Announcement
Optional origin sales of 179,000 metric tons of corn for delivery to unknown destinations during the 2018/2019 marketing year. An optional origin contract provides that the origin of the commodity may be the U.S. or one or more other exporting countries. Export sales of 145,000 metric tons of soybeans for delivery to unknown destinations during the 2018/2019 marketing year.
China Could Reduce Imports of Soybeans By 10 MMT For 2018
According to the China Academy of Science, a new formula of low-protein animal feed used in China could see a reduction of soymeal in rations by 5-7%, which would mean about 5 MMT fewer soybeans needed for feed. China is also looking to increase imports of rapeseed, palm seeds, and sunflower seeds from around the world to replace about 6 MMT of soybeans, likely of US origin. Chinese tariffs of 25% on soybeans and other goods began on July 6. In 2017, China imported 32.9 MMT of beans from the US and with new efficiencies in their bean crushing sector and replacement oilseeds, China expects to reduce their total soybean imports by around 10 MMT.
Severe Weather Expected in Southern Missouri Today
Later this afternoon, strong thunderstorms are expected to sweep across the southern portion of Missouri. Several inches of rain are expected, which may lead to minor flooding. There is also a chance for winds as high as 60 mph and 1 inch diameter sized hail. Areas in S Michigan, N Indiana, and N Ohio are also expecting storms with high winds, according to the NWS.
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