Select Page

-Massive palm oil rally pulls SBO/soybeans higher
-Russian wheat crop ideas lowered further
-USDA reports new crop soybeans sold to China again
-Good rains remain in forecast for most U.S. crop locations
-USDA reports tomorrow – trade estimate summary included

USDA’s Crop Production and WASDE reports will be out tomorrow at 11:00 AM CT. A summary of the average trade estimates is on the last page. Our pre-report commentary/analysis can be found on Market Insights at https://portal.rjobrien.com/MarketInsights/Blog/Read/44764. Sharply higher soybean oil values overnight, on huge palm oil price gains (see MPOB report comments below), pulled soybeans higher, as well.
 Malaysian palm oil futures rallied sharply overnight, with benchmark October futures closing up more than 7% and setting a new contract high, following the Malaysian Palm Oil Board’s reporting of end July palm oil stocks at 1.496 MMT, sharply below average market expectations of 1.640 MMT, down notably from 1.614 MMT in June vs expectations for an increase, the first decline in five months, a 4-month low and remaining well below year ago stocks of 1.698 MMT. July palm oil production of 1.523 MMT was mostly in line with expectations of 1.542 MMT, but down from 1.606 MMT in June and well below last year’s 1.807 MMT, while July exports of 1.408 MMT were a bit above expectations of 1.359 MMT, but down marginally from 1.419 MMT in June and well below last year’s 1.783 MT.
 With 16.5 million hectares (40.8 million acres) of this year’s wheat crop harvested, vs 15.7 mil hectares last year at this time, Russia’s average wheat yield of 3.34 tonnes/hectare (49.7 bu/acre) is now running 9% below last year’s 3.67 tonnes/hectare (54.6 bu/acre) for progress as of August 10.
 IKAR further lowered their estimate of the Russian wheat crop to 77.0 MMT from 78.5 MMT previously and compares to USDA’s last estimate of 85.0 MMT/85.4 MT last year. Sovecon is believed likely to further reduce their estimate of the wheat crop which was last at 76.4 MMT.
ï‚· USDA reported 132k tonnes of soybeans sold to China for 2021/22 delivery this morning.
 The Argentine Ag Secretary estimates the country’s farmers have now sold 26.8 MMT of this year’s soybean crop, an increase of 500k tonnes from last week and omparable to the previous week’s sales but below prior recent-week sales of 700-800k tonnes, and compares to 28.9 MMT of last year’s crop sold at this time. An estimated 36.4 MMT of the corn crop has now been sold, up 600k tonnes for the week (previous week’s sales were 1.2 MMT), and compares to 33.4 MMT old a year ago.
 Brazilian ag exporter association Anec sees August soybean exports at 6.1 MMT, up solidly from previous expectations of 4.9 MMT, comparable to last year’s 5.83 MMT, but down from July exports of 8.67 MMT. August corn exports are now expected to be 4.0 MMT vs 3.1 MMT previously expected, seasonally increasing from 1.98 MMT in July but significantly below last year’s 6.24 MMT.
ï‚· South Korea tendered for 210k tonnes of corn for November arrival.

CCSTrade
Share This