Updated on 5/25/2018
Grains are higher in the overnight with beans up 5 cents, corn is up a penny, and wheat is higher by 7 ¾ cents.
WTI Crude is off $1.66 in early trade. The U.S. Dollar Index is up 332 points.
For the week, wheat futures prices are up roughly 18 cents; corn is up 3; soybeans up 43 cents.
For the month, wheat prices are up roughly 51 cents; corn up 4; beans down 7 cents.
Private analysts AgroConsult yesterday estimated Brazil’s 2017/18 Safrinha corn crop at 57 million tonnes, down 10 MMT from last year’s harvest and below INTL FCStone’s 60.5 MMT projection earlier this month.
Executives for Hormel Foods and Sanderson Farms, two of the largest U.S. meat processors, expect grain prices to continue moving higher through the second half of 2018.
Saudi Arabia and Russia are discussing raising OPEC and non-OPEC oil production by some 1 million barrels a day.
Chart of the Day
USDA’s newly released commodity forecasts for 2019 indicate expected growth in U.S. production of beef, pork, broilers (young chickens), turkey, eggs, and milk. Generally, production growth in meat and animal products is supported by relatively low feed costs, the long-term trend of increasing animal weights for meat, and higher yields per animal for milk and eggs. However, veal production is expected to decrease, while no growth is expected for lamb. In 2019, growth of beef and turkey production is projected to exceed the respective 2014–18 averages of 1.2 percent and 0.4 percent. Growth of pork, broilers, and egg production is expected to be relatively consistent with the respective 2014–18 average growth rates of 3 percent, 2.3 percent, and 1.9 percent. The forecast growth rate for milk production is down compared to the 2014–18 average of 1.7 percent. In 2014–18, veal production contracted sizably, averaging annual decreases of 7.9 percent, but contraction has slowed in 2014–18. Similarly, in 2019, lamb, which saw average annual declines of 1.3 percent in 2014–18, is expected to maintain production levels consistent with 2018.