Revisiting Corn and Soybean Acreages (Yes, Again)

By Adam Graves, Global Risk Management Inc. With the market having now digested last week’s 6/30 USDA Acreage report and the corn and soybean growing seasons in full swing, it was once again thought valuable to revisit the topic of acreages. As a refresher, in the 3/31 Prospective Plantings report the USDA projected 2021 corn  Continue Reading »

Soybean Oil Share of Product Value in the Domestic Crush

By Brian Harris, Global Risk Management Inc. As soybean oil futures prices and forward inverses have continued to escalate, it is important that we not lose sight of soybean oil’s share of product value in the mix of decision making. Historically, it has only been under unusual and generally short- lived circumstances where the U.S.  Continue Reading »

Revisiting Corn and Soy Acreages Following Initial Projections

By Adam Graves, Global Risk Management Inc. Now that the market has had ample time to digest the 3/31 USDA Prospective Plantings report and corn and soybean plantings are in their early stages, it was thought prudent to briefly revisit the recent Global Risk Management study on how the SX/CZ ratio impacts planted acreage as  Continue Reading »

Malaysian Palm Oil Production Disappoints Again in February – Sends Prices to New Highs

By Patrick Sparks, Global Risk Management Inc. Palm oil production in Malaysia continues to be plagued by labor shortages resulting from COVID travel restrictions as well as excessive rains in many of the growing regions. Production in February was just over 1.1 million tonnes, a 5 year low. This brought cumulative 20/21 production to date  Continue Reading »

La Nina & West African Cocoa – An Oasis South of the Sahara?

By Adam Graves, Global Risk Management Inc. If you are an avid follower of world agricultural developments, or follower of world weather trends in general, then you are well aware that 2020/21 has seen a La Nina weather pattern. In mid-December, Global Risk Management’s Patrick Sparks gave some insight into the “often referenced but frequently  Continue Reading »

The USDA’s February Cattle on Feed Report Released Last Friday was Bearish on the Surface… and Even MORE Bearish Beneath the Surface. Here is Why…

By Michael Irgang, Global Risk Management Inc. The USDA’s February Cattle on Feed report estimated a February 1 feedlot inventory of 12.106 million head, 101.5% of a year ago and above average trade estimates of 100.9%. The reported ‘on feed’ number was also the second largest in the entire data series, which began in 1996.  Continue Reading »

February USDA Supply/Demand Report – Ending Stocks Estimates too Conservative?

By Brian Harris, Global Risk Management Inc. The USDA released their February Supply/Demand updates for the corn and soybean markets on Tuesday and the changes were relatively minor. Current spot contract corn and soybean futures prices have risen 73% and 66% respectively since August of 2020 as stellar demand from China has tightened the balance  Continue Reading »

Soybean Crushers are Running at a Record Pace in the Face of Shrinking US Soybean Supplies. Is it Sustainable?

By Patrick Sparks, Global Risk Management Inc. Supported by profitable crush margins, U.S. soybean crushers have been running at a record pace this season. Recently reported U.S. crush data from the USDA showed that 193.8 million bushels of soybeans were processed in December, a new record for the month. This compares to 184.7 million bushels  Continue Reading »

The USDA’s January Cold Storage Report Showed an Increase in Boneless Beef Supplies: Does this Mean Increased Availability for the U.S. Market?

By Michael Irgang, Global Risk Management Inc. The USDA’s January 2021 Cold Storage report pegged total inventories of boneless beef in cold storage on 12/31/2020 at 497.7 million pounds, an increase of 23.8 million pounds, or 5.0%, from the prior month. This inventory build for the month of December is higher than the normal inventory  Continue Reading »

Demand Rationing? China Says ‘Not Yet’ as They Book Massive Amounts of U.S. Corn This Week

By Max Olson, Global Risk Management Inc. The nearby corn futures in the U.S. have rallied $1.50 since the beginning of November (+38%), attempting to ration demand amidst the significantly tighter domestic supply estimates. On the January USDA report, the U.S. ending stocks for the 20/21 crop year were estimated at 1.552 billion bushels, or  Continue Reading »