PDF Attached include three/four NASS updates (US flour milling up 1% from Q1)

 

Calls:

Soybeans
10-15 lower

Soybean
meal $1.50-3.00 lower

Soybean
oil 50-100 lower

Corn
4-8 lower

Chicago
wheat 5-10 lower

KC
wheat 5-10 lower

MN
wheat 7-12 lower

 

US
crop conditions were surprisingly high. Three other reports were released by USDA. Yields 178.5 corn and 49.9 soybeans looking at for Aug report.

 

 

US
weather is getting friendlier, for the two-week forecast, but the threat of heat and dryness has not all abated. Global economic concerns sent US WTI crude oil slightly lower for the evening trade (it was down sharply Monday during the day), pressuring outside
related commodity markets. Reuters noted manufacturing data in several countries weighed on the demand outlook for energies. OPEC+ has meetings this week. July mineral oil global output was a little better than expected.

 

US
weather outlook improved over the past weekend for the US and the midday GFS model confirmed that, with little more rain for the Corn Belt, bias south and east, and less threatening hot temperatures, at least over the near term. 11-15 day suggests hot and
dry.

 

Despite
and sharply lower USD and US crop conditions on the decline, CBOT US agriculture markets traded lower, in part to heavy technical selling and Ukraine shipping a Black Sea cargo. Negative US / China trade talks should be not overlooked.

 

 

 

 

 

Weather

Map

Description automatically generated

 

World
Weather Inc.

WEATHER
TO WATCH AROUND THE WORLD

  • Western
    U.S. Corn Belt is likely to dry down this week because of hot temperatures and limited rainfall
    • Two
      waves of hot weather will impact the Plains and western Corn Belt with highs in the 90s to 104 degrees Fahrenheit expected in the first wave (slightly hotter in the heart of the Plains with extremes to 108)
    • Second
      wave late this week into the weekend will generate highs in the 90s to 102 with slightly warmer readings in the Plains
    • Insignificant
      rainfall is expected during the week allowing net drying to occur especially in the Plains and Missouri River Valley
    • Soil
      moisture is already short to very short in the northwestern Corn Belt and it is expected to dry down in the southwestern Corn Belt this week
  • U.S.
    second week outlook in the Plains and western Corn Belt may bring along some periodic rainfall to slow the drying trend and possibly offer a little relief to the driest areas
    • Temperatures
      will not be nearly as hot next week as they will be at times this week in the Western Corn Belt
  • Rain
    will fall periodically in the eastern U.S. Midwest over the next ten days to two weeks resulting in a mostly favorable crop development environment
  • U.S.
    Delta and southeastern states weather is expected to be favorably mixed over the next ten days to two weeks
  • Texas
    crop areas away from the coast and away from the Panhandle will continue to experience hot and dry weather resulting in some ongoing crop stress.
  • Heavy
    rain fell in the Texas Panhandle during the weekend with Goodnight, Texas reporting 6.71 inches of rain
    • Rain
      fall of 1.00 to more than 4.00 inches occurred across central parts of the Panhandle seriously bolstering soil moisture for improved crop development potential
  • U.S.
    soil moisture is mixed across key crop areas with dryness most serious in the Dakotas, eastern Nebraska, southern Minnesota and western Iowa
    • These
      areas are experiencing very short topsoil moisture and short to very short subsoil moisture.
      • Some
        areas are drier than others, but the longer these areas go without rain the more serious the stress is likely to become
  • U.S.
    Delta soil moisture has improved with recent rain, but subsoil moisture is still rated very short
    • Much
      more rain is still needed to support crops in the long run
  • Soil
    moisture in the central and eastern Midwest is still rated quite favorably and these areas will continue to get significant rainfall
  • Soil
    moisture improved greatly in cotton, corn and sorghum areas from southwestern Kansas into the Texas Panhandle and in northern parts of Oklahoma during the past week
  • World
    Weather, Inc. believes the Plains and western fringes of the U.S. Corn Belt will continue to experience a drier biased scenario during the next two weeks, but the central and eastern Midwest will get timely rain to maintain a favorable outlook for crop development
    from the Mississippi River valley into the eastern Midwest
    • This
      outlook is similar to that of earlier this summer, but wetter than that of late last week
  • Excessive
    heat continued in the Pacific Northwest during the weekend with extreme highs of 104 to 113 reported officially
    • Some
      areas in Oregon and southern Idaho did not warm above 100, but were in the upper 90s
    • Crop
      and livestock stress was tremendous
    • A
      few heat-related deaths occurred to humans
    • Livestock
      losses have likely occurred, but not yet confirmed
    • Temperatures
      reached 108 as far north as Lytton, British Columbia
    • A
      huge demand was placed on water supply in the region all of last week and through the weekend
  • Relief
    is expected in the U.S. Pacific Northwest during mid-week this week with temperatures easing back to near normal levels for a while, but heat may return to parts of the region for a little while net week
  • U.S.
    bottom line is very similar to that of earlier this summer. Dryness is not an issue in the central or eastern Midwest (outside of a few pockets). Dryness is a little more common in the western Corn and Soybean production region with some areas drier than others.
    Crop stress is already present in a significant manner in the northwestern Corn Belt while expanding across the northern Plains. World Weather, Inc. believes relief in the northern Plains and northwestern Corn Belt is not likely until next week when the weekend
    high pressure ridge either breaks down or shifts to the west. Until then, rainfall is unlikely to be great enough to offer serious relief from heat and dryness. Next week will offer some partial relief to heat and dryness in the Plains and westernmost Corn
    Belt, but the ridge might return a little later in August quickly closing the door of opportunity for relief in the westernmost crop areas. Overall, crop conditions will stay good in the Delta, southeastern states and central and eastern Midwest while moisture
    and heat stress (in this first week only) will occur in the westernmost Corn Belt and Great Plains pressuring crop development, but actual losses in production will be more determined by next week’s weather in these areas than this week.  World Weather, Inc.
    is concerned that the second week rainfall in the Plains and western fringes of the Corn Belt will be restricted limiting relief. In the meantime, relief is expected in the Pacific Northwest from the excessive heat, although rainfall will be minimal. Rain
    is also unlikely in the northwestern U.S. Plains where crop moisture stress will continue next week despite cooler temperatures.
  • Western
    Europe was left dry during the weekend and temperatures began to turn warmer with highest temperatures back into the 80s and lower 90s Fahrenheit in France and hotter in Spain while in the 70s and lower 80s in Germany and the U.K.
  • Western
    Europe is unlikely to get much precipitation during the next ten days, although it will not be totally dry
    • Resulting
      rainfall is not likely to be very great and no serious change in crop moisture and livestock stress is expected
    • Temperatures
      will be above normal for the next full week and possibly ten days
      • Extreme
        highs in the 80s and 90s are expected over many parts of western Europe with extremes over 100 in the southwest; including southwestern France
  • Eastern
    Europe received rain during the weekend with Poland, Czech Republic and a part of Slovakia getting 1.00 to 2.63 inches
    • One
      location in eastern Czech Republic received 5.35 inches
    • Showers
      also occurred in Serbia, western Bulgaria, Romania and western Ukraine with coverage of 75% and rainfall of 0.05 to 0.62 inch
      • A
        few local totals of 0.88 to nearly 3.00 inches resulted
    • Most
      of the rain was welcome, but only a few areas that had been too dry received enough rain to seriously improve soil moisture
    • Drought
      remains and is unlikely to change without greater rain
  • Eastern
    Europe weather will experience isolated to scattered showers over the next ten days with the Balkan Countries driest and warmest
    • Crop
      stress will continue in areas that failed to get rain during the weekend
  • The
    bottom line in Europe is still quite favorable in the Baltic Plain, Belarus and the Baltic States as well as Czech Republic, but dryness is still a concern in most of western and southeastern Europe, despite temporary relief in the southeast during the weekend.
    Rainfall in the next two weeks will be a little too light and infrequent while temperatures are warmer than usual to induce any serious change in crop or field conditions. Crop stress will continue in France, southern parts of the U.K., portions of Germany,
    Belgium, Netherlands, Spain, Portugal, southern Italy and from parts of Greece and Bulgaria to Hungary and a part of Slovakia.
  • A
    split jet stream is expected over parts of Russia resulting in net drying conditions in the eastern portions of the Volga River Basin Ural Mountains region, western Kazakhstan, eastern parts of Russia’s Southern Region and the eastern Russia New Lands during
    the next ten days
    • Temperatures
      will be near to above normal inducing a net decline in soil moisture
    • Some
      drying has already occurred, and a little crop stress is possible as time moves along during the next two ten days
  • Eastern
    Ukraine and portions of southwestern Russia will experience periods of rain this week improving topsoil moisture and crop conditions
    • This
      will include western parts of Russia’s Southern Region
    • Some
      rain totals by Saturday may vary from 1.00 to 3.00 inches
  • Northeastern
    China received additional rain during the weekend from northern Jiangsu and southern Shandong into Heilongjiang  
    • Rainfall
      varied from 1.00 to 3.00 inches except in southern Shandong and northern Jiangsu where 10.00 to 11.30 inches of rain were noted
    • Drying
      occurred in the Yellow River Basin after heavy rain fell late last week
    • Showers
      elsewhere in China were sporadic and mostly light
    • Temperatures
      were warm enough induce quick drying
  • Eastern
    China’s weather in the next ten days will be drier than usual in the interior southeast and favorably to excessively wet from the Yellow River Basin and North China Plain into northeastern China
  • Xinjiang,
    China will see a good mix of weather over the next two weeks maintaining favorable crop development and normal yield potentials
  • Argentina’s
    next potential rain event in wheat areas is possible late this coming weekend into early next week
    • Rainfall
      may vary up to 0.50 inch, but the event is too far out in time to have much confidence in the event
    • Rain
      will also fall in northeastern Argentina Tuesday into Thursday, but that event will most the most important wheat areas and especially those that are driest in the west
  • Far
    southern Brazil will receive periodic rainfall during the next ten days maintaining a typically moist pattern in the soil from Rio Grande do Sul into Paraguay, southernmost Mato Grosso do Sul and parts of both Parana and southern Sao Paulo
    • The
      moisture will be great for winter crops and should not have much impact on Safrinha crop maturation or harvesting
    • Some
      forecast models have suggested rain in parts of Mato Grosso next week, but confidence in the event is very low
  • Safrinha
    cotton and late corn harvesting in Brazil will advance well due to continued dry and warm weather through the coming weekend
  • There
    is no threat of damaging cold weather in Brazil coffee, citrus or sugarcane areas during the next two weeks
  • Southeastern
    Canada (Quebec and Ontario) crop conditions are rated favorably with little change likely for a while
  • Canada’s
    southwestern and central Prairies will dry down over the next week to ten days and temperatures will slowly rise above normal.
    • Crop
      stress will rise once again as soil moisture is slowly depleted
      • The
        greatest stress will eventually evolve in central, west-central, southwestern and south-central Saskatchewan and southeastern Alberta, but conditions will remain favorable through the weekend
  • India’s
    monsoonal rainfall is expected to continue widespread across the nation during the next two weeks with all areas impacted and most getting sufficient rain to bolster soil moisture and/or induce flooding
    • Some
      central areas may become too wet, but the precipitation will occur with sufficient breaks in this coming week to prevent serious flooding from occurring
    • Worry
      over Uttar Pradesh, Bihar and Jharkhand will continue even though timely rain is expected
      • These
        three states and immediate neighboring areas received well below normal precipitation earlier this summer and have moisture deficits still lingering
        • Greater
          rain is needed in these areas but may be slow in coming.
    • Nationwide
      rainfall is still expected to be above normal through mid-August and additional relief should occur to the dry areas of Uttar Pradesh and Bihar, but the amounts will need to be closely monitored. Cotton, groundnut and soybean areas of northwestern India should
      experience mostly good weather for crop improvements after flooding rain earlier this month
  • Sumatra,
    Indonesia rainfall continues a little too erratic and greater moisture is still needed in some areas, despite a little rain earlier this week
    • Greater
      rain is expected to slowly evolve over the next two weeks

 

  • All
    other Southeast Asian nations will experience an abundance of rainfall during the next few weeks resulting in some flooding in the Philippines and the Maritime provinces
  • Australia
    weather in the coming ten days will be favorable for most winter crops
    • Central
      Queensland received rain Wednesday and Thursday favoring a boost in topsoil moisture for a part of winter crop country
    • Western
      Australia will get most of the significant rain this coming week, but some rain will eventually reach the southeastern parts of the nation in time next week.
  • South
    Korea rice areas are still dealing with drought, despite some rain that fell recently.
    • Some
      additional rain is expected over the next couple of weeks
  • East-central
    Africa rainfall is increasing and will be greatest in central and western Ethiopia, but Uganda and Kenya will get some much needed improved rainfall
    • Tanzania
      is normally dry at this time of year, and it should be that way for the next few of weeks
  • West-central
    Africa rainfall has been and will continue sufficient to support coffee, cocoa, sugarcane, rice and cotton development normally
    • Some
      greater rain would still be welcome in the drier areas of Ivory Coast and Ghana
    • Seasonal
      rains are shifting northward leading to some drying in southern areas throughout west-central Africa
    • Cotton
      areas are expecting frequent rainfall in the next couple of weeks
  • South
    Africa’s crop moisture situation is favorable for winter crop establishment, although some additional rain might be welcome
    • Restricted
      rainfall is expected for a while, but the crop is rated better than usual
  • Central
    America rainfall will continue to be abundant to excessive and drying is needed
  • Mexico
    rain will be most abundant in the west and southern parts of the nation
  • Rain
    in the Greater Antilles will occur periodically, but no excessive amounts are likely
  • Today’s
    Southern Oscillation Index was +7.83 and it will move erratically higher over the next week
  • New
    Zealand weather is expected to be well mixed over the next two weeks
    • Temperatures
      will be seasonable with a slight cooler bias

Source:
World Weather INC

 

Bloomberg
Ag Calendar

Monday,
Aug. 1:

  • USDA
    export inspections – corn, soybeans, wheat, 11am
  • US
    crop conditions for wheat, corn, soybeans and cotton; spring wheat harvest, winter wheat crop progress, 4pm
  • USDA
    soybean crush, DDGS production, corn for ethanol, 3pm
  • Honduras
    and Costa Rica monthly coffee exports
  • International
    Cotton Advisory Committee releases monthly outlook report
  • EARNINGS:
    CF, Mosaic
  • HOLIDAY:
    Canada

Tuesday,
Aug. 2:

  • New
    Zealand global dairy trade auction
  • EU
    weekly grain, oilseed import and export data
  • Australia
    commodity index
  • US
    Purdue Agriculture Sentiment, 9:30am
  • EARNINGS:
    FMC, Green Plains, Andersons

Wednesday,
Aug. 3:

  • EIA
    weekly U.S. ethanol inventories, production, 10:30am
  • Malaysia’s
    July 1-20 palm oil export data
  • New
    Zealand Commodity Price

Thursday,
Aug. 4:

  • USDA
    weekly net-export sales for corn, soybeans, wheat, cotton, pork and beef, 8:30am
  • EARNINGS:
    Corteva

Friday,
Aug. 5:

  • FAO
    World Food Price Index
  • ICE
    Futures Europe weekly commitments of traders report
  • CFTC
    commitments of traders weekly report on positions for various U.S. futures and options, 3:30pm
  • FranceAgriMer
    weekly update on crop conditions
  • Malaysia’s
    Aug. 1-5 palm oil export data

Source:
Bloomberg and FI

 

USDA
inspections versus Reuters trade range

Wheat                 
256,601                 versus   250000-550000  range

Corn                     
856,938                 versus   550000-1150000                range

Soybeans           
555,083                 versus   300000-800000  range

 

 

 

GRAINS
INSPECTED AND/OR WEIGHED FOR EXPORT

                 
REPORTED IN WEEK ENDING JUL 28, 2022

                           
— METRIC TONS —

————————————————————————-

                                                  
CURRENT     PREVIOUS 

             ———–
WEEK ENDING ———-  MARKET YEAR  MARKET YEAR

 
GRAIN      07/28/2022  07/21/2022  07/29/2021    TO DATE     TO DATE  

 

BARLEY             
0           0         599          847        4,214 

CORN         
856,938     753,793   1,467,379   51,926,177   63,092,662 

FLAXSEED           
0           0           0            0           24 

MIXED              
0           0           0            0           48 

OATS               
0         798           0        5,089          100 

RYE                
0           0           0            0            0 

SORGHUM       
92,019      77,196      55,306    7,236,681    6,767,030 

SOYBEANS     
555,083     392,480     185,723   53,561,468   58,357,567 

SUNFLOWER      
    0           0           0        2,260          240 

WHEAT        
256,601     475,526     405,215    2,848,425    3,791,107 

Total      
1,760,641   1,699,793   2,114,222  115,580,947  132,012,992 

————————————————————————–

CROP
MARKETING YEARS BEGIN JUNE 1 FOR WHEAT, RYE, OATS, BARLEY AND

FLAXSEED; 
SEPTEMBER 1 FOR CORN, SORGHUM, SOYBEANS AND SUNFLOWER SEEDS.

INCLUDES
WATERWAY SHIPMENTS TO CANADA.

 

Macros

US
Construction Spending (M/M) Jun: -1.1% (est 0.1%; prev R 0.1%)

US
ISM Manufacturing Jul: 52.8 (est 52.0; prev 53.0)


Prices Paid: 60.0 (est 74.3; prev 78.5)


New Orders: 48.0 (est 49.0; prev 79.2)


Employment: 49.9 (est 49.9; prev 47.3)

9:08:02
AM livesquawk Ukraine’s State Gas Transit Operator: Gazprom Booked Transit Capacity At Sudzha Transit Point Of 41.72 Mcm For Aug 2, Same Volume As On Aug 1

 

Moody’s:
US Real GDP Growth Seen At 2.1% This Year, 1.3% In 2023

Moody’s:
Expects FOMC To Take Fed Funds Rate To3.50%-3.75% By End-2022, Above 4.0% By March 2023

 

WTI
fell today on renewed demand concerns. Yet, US SPR fell to 469.9 million barrels, lowest since May 1985.

 

Brazil
selected commodity exports

Commodity  
                   July 2022          July 2021

CRUDE
OIL (TNS)                5,051,677             4,208,806

IRON
ORE (TNS)                 31,889,651            31,560,509

SOYBEANS
(TNS)                 7,518,153             8,669,658

CORN
(TNS)                     4,123,973             1,991,369

GREEN
COFFEE(TNS)              146,797               142,914

SUGAR
(TNS)                    2,884,256             2,468,740

BEEF
(TNS)                     167,292               165,515

POULTRY
(TNS)                  377,103               390,982

PULP
(TNS)                     1,690,836             1,414,132

 

Corn

·        
CBOT corn was lower on Ukraine shipping its first grain shipment out of the Black Sea. A large decline in WTI crude oil is also bearish. Fundamentals have not changed much other than yield prospects for the US are good when updated
by USDA next week. Corp conditions are suggesting near or very high record yields.

·        
But the spreading in soybeans over corn last week appeared to be overdone and unwinding of that limited losses.

·        
It will be a while to see how much corn and wheat will flow out of the Black Sea region, but just the thought China will turn to Black Sea corn is keeping some wondering if US corn exports will have an impact over the short term.

·        
Ukraine shipped 3 million tons of agriculture products in July, a 12% increase from June. Grains were 1.7 million tons, not that bad of a figure given the rail constraints.

 

 

Export
developments.

·        
Taiwan’s MFIG seeks up to 65,000 tons of corn on Aug 3 for Oct 1-20 shipment if from the Gulf/SA, or later if from PNW.

 

 

 

Updated
7/28/22

September
corn is seen in a $5.25 and $6.50 range

December
corn is seen in a $5.00-$7.50 range

 

Soybeans

·        
Soybeans saw heavy selling from technical selling amid uncertainty over the US/China trade call (export business), lack of US export demand and technical selling. Soybean meal was down sharply along with soybean oil for the same
reason, a correction after prices sharply rose last week.

·        
US crop conditions were better than expected for corn and soybeans.

·        
US rains moved across the northern Delta over the weekend, an area where 90+ degrees dominated over the past few weeks. That area needed the rain.

·        
There were no CBOT deliveries posted for Monday morning.

·        
India is seeing above average rains for early Aug monsoon season, good for wheat and replenishing soil moisture for winter oilseeds.

 

 

USDA
Attaché: Indonesia biofuels annual

https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Biofuels%20Annual_Jakarta_Indonesia_ID2022-0017.pdf

 

 

Export
Developments

·        
China looks to sell a half a million tons of soybeans out of reserves on August 5.

 

Updated
7/28/22

Soybeans
– September $13.00-$15.00

Soybeans
– November is seen in a $12.25-$16.00 range

Soybean
meal – September $400-$500

Soybean
oil – September wide range of 56.00-68.00.

 

Wheat

·        
The first Ukraine Black Sea grain vessel set sail over the weekend, pressuring global wheat prices. The first shipment set to reach Istanbul is a milestone, but the trade needs to be cautious on how much will be exported over
the next several weeks.

·        
US wheat futures ended lower despite a sharp decline in the USD. The focus was on technical selling in soybeans, which could have supported grain spreads over oilseeds.

·        
Paris September wheat was off today to a one week low of 336 euros. Big option trading for Paris was seen on Monday.

 

 

Export
Developments.

·        
Algeria seeks 50,000 tons of wheat on Tuesday for Sep/Oct shipment.  They are normally a customer of the EU.

·        
Look for Egypt to retender for wheat if futures prices remain under pressure.

·        
Jordan seeks 120,000 tons of wheat on August 2.

·        
Taiwan seeks 50,910 tons of US wheat on August 4 for shipment from the PNW between September 21 and October 5.

 

Rice/Other

·        
South Korea’s Agro-Fisheries & Food Trade seeks 92,100 tons of rice on Aug 3 for arrival in SK between Feb & Apr.

 

Updated
7/25/22

Chicago
– September $7.35 to $9.00 range, December $7.00-$10.50

KC
– September $7.45 to $9.50 range, December $7.00-$10.75

MN
– September $8.00‐$10.00, December $8.00-$11.50

 

 

Terry Reilly

Senior Commodity Analyst – Grain and Oilseeds

Futures International
One Lincoln Center
18 W 140 Butterfield Rd.

Oakbrook Terrace, Il. 60181

W: 312.604.1366

treilly@futures-int.com

ICE IM: 
treilly1

Skype: fi.treilly

 

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