Kirsten Rall updates the markets as of 8 a.m. on 7/13/2020
Grains: Grain futures are lower in overnight trade. Most of the Corn Belt is expected to see moisture and high temperatures in the upcoming week. Grain trade is still reacting to the WASDE that was released on Friday. Corn and soybeans closed lower last week in the wake of the report, while wheat futures ended mixed. The USDA forecast wheat production in 2020 is at 1.82 billion bushels.
On Friday, the USDA announced 53.6 million bushels (mb) of corn, 6.9 mb of HRS and 4.7 mb of HRW sold to China in a daily sales announcement. This is the seond largest single-day US corn purchase from China.
The trade expects national corn conditions to drop 1-2% on Monday afternoon.
Livestock: According to Processional Ag Marketing, the significant impact of the coronavirus pandemic on the beef industry has been an increase in the number of carcasses grading Prime. USDA reported cattle grading Prime during March and April were just more than 10% of steer and heifer slaughter. May data show the Prime number at just over 12%, which compares with just 8% during May of 2019. June’s weekly average of steer and heifer carcasses grading prime was 10.62% compared to 7.04% last year. This year has not had a single week where the national percentage of prime has dipped below 9%. Over the 26 weeks of data the average has been over 10%, compared to 2019’s 8.55%.
Monday’s slaughter is expected at 121,000 head.