Morning Commentary

Sept corn up 6 ¼ at $3.525

Nov beans up 8 ½ at $9.0575

The DOW is down

USD is stronger

Crude oil down $.07 at $40.83

Good morning,

Corn prices have held mostly steady since last week with the DEC20 contract trading in a 15 cent range between $3.48 and $3.63 per bushel and well off the recent $3.22 contract low. Don’t forget we have the July USDA “supply and demand” report tomorrow. The trade is hoping to see a significant reduction in the estimate for total U.S. production. The USDA was previously forecasting close to 16.0 billion bushels, the trade is now looking for a number sub-15.1 billion bushels depending on yield which is currently estimated at 178.5. At the same time, the trade is looking for the USDA to reduce ending stocks by -500 to -600 million bushels. The USDA was formerly forecasting new-crop ending stocks at +3.3 billion bushels, the trade is thinking that number will now be somewhere around 2.7 billion bushels. The fear is corn used for ethanol could still disappoint as U.S. consumer demand for gasoline is still -10% to -15% below last year.

Soybeans: Most inside the trade are thinking the USDA’s recent 4.125 billion bushel U.S. production estimate might move a bit higher on a slight upward adjustment to yield from 49.8 to 50.1 bushels per acre. At the same time, endings stocks might push a bit higher.

Bayer was forced on Wednesday to delay part of a proposed settlement of allegations that its widely used weedkiller Roundup caused cancer after a U.S. judge questioned its plan to deal with future claims. The German company said that lawyers representing those preparing a class action had withdrawn a request for court approval of the $1.25 billion future claims scheme, part of a broader $10.9 billion agreement to settle close to 100,000 U.S. lawsuits related to Roundup. Bayer said the wider agreement to settle current claims at a cost of up to $9.6 billion was not affected by Wednesday’s decision, which only impacted the agreement on future claims.(Reuters)

The U.S. Department of Agriculture’s Animal & Plant Health Inspection Service (APHIS) announced the initial purchase of vaccine for the National Animal Vaccine & Veterinary Countermeasures Bank (NAVVCB). APHIS will invest $27.1 million in foot and mouth disease (FMD) vaccine, which the agency would use in the event of an outbreak to protect animals and help stop the spread of disease, the announcement said. “While we are confident we can keep foot and mouth disease out of the country, as we have since 1929, having access to vaccine is an important insurance policy,” USDA marketing and regulatory programs under secretary Greg Ibach said.(Feedstuffs)

Electric cooperatives, which serve about 42 million rural Americans, are a window of sorts into the far-reaching effects of the pandemic. Revenues of the cooperatives have taken a hit as the outbreak has curbed demand from commercial users and left many workers unemployed and unable to pay their bills. “What we’re seeing here is the collateral damage,” said Jeff Hohn, chief executive officer of Kenergy Corp, an electric cooperative that serves 14 rural counties in northwestern Kentucky where manufacturing plants including paper mills and auto suppliers have been hit by shutdowns. “The concern here is whether some of those businesses will come back.” The National Rural Electric Cooperative Association (NRECA) estimates its members will suffer a revenue shortfall of $10 billion through 2021. The NRECA has lobbied the U.S. Congress to adopt legislation allowing cooperatives to refinance government loans at lower interest rates to ease the pain. (Reuters)


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