-Russian meeting on wheat exports rallies market
-Ag attache report discusses Argentine export tax plan
-China takes additional steps to halt swine fever
-Good rains for corn belt next 10 days
Wheat traded solidly higher overnight following reports Russia’s ag ministry met with grain exporters to discuss export volume
ideas. Soybeans traded lower overnight, giving back a modest amount of yesterday’s strength, but worked back to near unchanged
by the end of the overnight session. Corn was generally a mixed affair.
 A meeting between the Russian ag ministry and a group of grain exporters was held today with officials stating “working
questions about export volumes were discussed at the meeting,†but no limits were actually put in place. Earlier in the day, the
ag ministry said they expect this year’s wheat exports to be 35 MMT, which would be in line with the USDA’s current estimate
and down from last year’s 42.0 MMT. Grain traders who were at the meeting said the ag ministry stated they would consider
limiting exports once they reach 30 MMT, after a request was made from those in the meat-producing industry, but that no
decisions were made on how that could/would be implemented.
 A report by the USDA ag attaché in Argentina on the government’s decision to temporarily halt the gradual reduction of export
taxes on soybean meal and soybean oil for six months confirmed the overall plan will allow for the resumption of the
0.5%/month tax cuts beginning in March 2019, while export taxes for soybeans are allowed to continue declining as planned. As
there is now a 3% tax advantage to exporting SBM and SBO, the temporary halting of the tax reduction for the products will
result in the tax rate being equal among soybeans, SBM and SBO by March 2019 at 23%, at which time the 0.5%/month tax
reductions will resume.
 In a proactive step attempting to limit the impact of African swine fever (ASF) at a slaughterhouse in China’s Henan province,
China ordered the operation, run by world’s top pork producer, WH Group Ltd., to fully shut down for 6 weeks. The devastating
nature of ASF, which is often fatal to hogs and for which there is no vaccine, has increased concerns about the situation even
though the hog numbers involved so far have been very small. Also elevating concerns is the fact the hogs involved in the case
in the Henan slaughterhouse, which is in the heart of major pork-producing areas, travelled more than 1000 miles by truck from
northeastern feed operations, and thru areas where the first case was identified a week earlier.
 China sold 851k tonnes of the 3.959 MMT of state reserve corn offered at today’s auction, putting auction sales for the week at
2.384 MMT and total sales since the start of auctions in mid-April at 64.3 MMT.
ï‚· Of no surprise, French corn conditions declined again last week, falling by a minor 1% good/excellent to 61%, but by 10% g/e
over the last three weeks. At the same time last year, the corn crop was rated 79% g/e.
Weather
Rains again fell across much of the region yesterday, bringing totals of .25-.75†with a few isolated heavier totals and coverage of
around 75-85%. Only the northern 3/4th of MN missed the rains. The forecast still sees average to above average rains to fall in
most of the region in the next 7-10 days. Rains today look to bring totals of .25-.75â€, with some isolated heavier totals to eastern
IL, southern MI and most of IN and OH. The next system Sun-Tues shows rains of .50-1†with areas of 1â€+, for most of the belt,
with the only area to not see at least .50†fall will be MN, which is a drier look for MN from yesterday’s forecast. The 3rd system next
Fri-Sat shows totals of .50-1â€, with areas of 1â€+, to areas mainly north of I-80, as well as southeast IA and central IL.