Wheat Crop Rating Lower
- National winter wheat conditions were 43% good to excellent compared to 46% last week and 52% last year.
- 89% of the crop has emerged which is on pace with 88% average for this time.
- The lower crop rating came as surprise to many as the average trade expectation was for a 1 point increase in conditions.
- Some soft red wheat growing areas saw improved good/excellent ratings with IL up 4% and MI up 10%.
- However, ratings in HRW country were much lower than expected with KS (-3%), CO (-8%), OK (-7%), and TX (-6%) all down.
- Conditions in NE managed to remain steady.
FBN’s Take On What It Means For The Farmer: The Texas Panhandle and portions of western Colorado through northern and western Kansas have been abnormally dry or in a moderate to severe drought. Dryness is not yet a critical problem in the eastern portions of Oklahoma and Kansas due to some recent rains, but the long range forecast is for below normal precip. While the dry conditions going into dormancy are not ideal, spring weather is the largest factor in determining yields.
China Ag Imports
- China imported 1.14 million tonnes of corn in October versus 1.08 million in September and 90,000 tonnes in October last year.
- 2020 year to date imports are 7.8 million tonnes compared to 4.0 million last year.
- China’s wheat imports in October fell to 630,000 tonnes from 1.07 million last month, but were still above last year’s 280,000 tonnes.
- 6.7 million tonnes of wheat have been imported so far this year, compared to 2.5 million last year.
- Total grain imports (corn, wheat, barley, sorghum) of 24.5 million tonnes is nearly double the 12.5 million brought in last year.
- Pork imports for the year to date are up 126% at 3.62 million tonnes.
- Beef imports in October were up 12.2% year on year to 170,000 tonnes, with 1.74 million tonnes shipped in for the year.
FBN’s Take On What It Means For The Farmer: Increased agricultural imports from China are not a surprise as the country rebuilds the hog herd which was decimated by African Swine Fever, and amid increased trade obligations with the US. We expect China’s purchases to continue to be a supportive factor through the new year.
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