Friday March 27, 2020

  • Wheat and beans recovering some of their losses from yesterday this morning 
  • Trade continues to watch the Black sea region in their evolving story of export restrictions – so far they have said they will limit exports but not below the average historical shipping quantity
  • Soys and corn watching a similar story in South America waiting to see what action they will take at the ports as a react to COVID 19
    • An Argentine port union has asked the government to suspend shipments for the next 15 days in response to COVID – this would come at a crucial time for soybean exports 
  • International Grains Council lowered their estimates for global soybean production in 2019/20 largely due to a decrease in both Argentine and Brazilian crop – coming as somewhat of a surprise considering the USDA raised their estimates in their last report for both countries
  • Reuters news has identified almost 20 U.S. ethanol plants that are idling or shutting down production – Renewable Fuels Standard believes total production capacity could fall by 20% by the end of March – a loss of over 3 billion gallons
  • However a potential bright spot in the ethanol story: China reportedly will purchase U.S. ethanol in 2020 as part of the phase one trade deal 
  • The corona virus has been weakening the worlds weather forecast coming into a critical time for farmers
    • Meteorologists rely on information gathered from commercial planes – with the world essentially grounded they are losing access to valuable information on weather patterns across the world