Grain Express 8/29/22
Posted: Aug. 29, 2022, 8:19 a.m.
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Outside Markets
Outside markets are continuing to trade under pressure following last week's speech by Federal Reserve Chairman Jerome Powell, where he reiterated the Fed will take a strong stance against inflation, which may cause some pain to some households. Slowing growth around the world will be something to keep a close eye on moving forward.
Final Results
Pro Farmer released their final yield and production estimates for corn and soybeans on Friday, after the close. They have the U.S. corn yield at 168.10 bushels per acre, well below the 175.4 the USDA estimates. Keep in mind that DTN came out with a 167.2 bushels per acre in the first week of August. It's reasonable to believe the market may be trading closer to a 170-172 final yield at the moment.
The Pro Farmer soybean yield estimate came in at 51.7 bushels per acre, a notch below the 51.9 bushels per acre that the USDA estimated in the August report. DTN released their estimate of 48.9 bushels per acre at the beginning of August. It's reasonable to assume the market is trading 51 bps +/- 1.
Ukraine
More than one million tonnes of grain and food items have been exported under the recent deal. The UN Coordinator for the Black Sea Grain Initiative, Amir Abdulla reported on Saturday that "The Black Sea Grain Initiative has created some space in Ukrainian silos stocked with millions of tonnes of produce from previous harvests. Yet, much more grain needs to be exported to accommodate the new harvest"
“Equally important and urgent is the export of fertilizer, including ammonia, under this Initiative, so that farmers across the world can continue food production for next year at an affordable cost,” said Mr. Abdulla.
Technical Snapshot
Corn (December)
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Soybeans (November)
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