Weekly Export Inspections were on the Low End of Estimates

Grains Were Up in the Overnight Session

October 2, 2020

Headlines

Lighthizer and Mnuchin are in talks with Chinese on trade. Export inspections within expectations. KC Wheat ratings improve.

HRW Wheat Weather

Today and Wednesday showers are expected in south eastern KS, OK and TX with precip ranging from .25” to 1.5”. Dry weather is expected to follow through the end of the week. The 11-15 day forecast is wetter in the southern areas and is expected to bring moisture to southeastern KS, central OK and central Texas. Western KS, western OK, southeastern CO and the panhandle of Texas are all expected to stay dry. Hard red winter wheat ratings showed improvement after rains last week, but are still the worst on record for this time of the year. KS wheat rated poor/very poor declined to 49% from 55%. Wheat rated good to excellent increased to 13% from 11%. OK wheat rated poor/very poor declined to 54% from 66%. Wheat rated good to excellent increased to 9% from 5% LW. TX wheat rated poor/very poor increased to 63% from 60%. Wheat rated good to excellent increased to 12% from 10%.

Argentina

The 1-5 day weather outlook remains dry for the remainder of the week with a few showers in northern Santa Fe into the weekend and missing the majority of the crop production region and driest areas. The recent weather model increased moisture in Cordoba, western Buenos Aires and la Pampa in the 6-10 day outlook. Crop analyst from Rosario grains exchange Sofia Corina said on Monday “No matter how much it rains now, it won’t help. Yields are fixed”.

Brazil

Showers throughout Brazil continue to benefit second crop corn.

U.S. in Negotiations with China

White House trade adviser Peter Navarro confirms that U.S. trade representative Robert Lighthizer and treasury secretary Steven Mnuchin are in talks with the Chinese in hope of avoiding a trade war. In an interview on Fox news Sunday, Mnuchin said he is seeking an agreement “for them to open up their markets, reduce their tariffs, stop forced technology transfer. These are all the things we want to do.” U.S. stocks traded higher following the news of trade talks.

Weekly Export Inspections

Export inspections were on the low end of estimates for both wheat and corn. Soybean inspections were strong this week.