Corn 665-2 (-0.71%) | Soybeans 1436-0 (+0.54%) | SRW Wheat 819-2 (-0.33%)
KC Wheat 922-6 (-0.11%) | Live Cattle 156.625 (+0.50%) | Lean Hogs 90.025 (+0.53%)
______________________________________________________________________
Welcome to your weekly agriculture report, where we cover everything you'll need to know for the week ahead. The holiday season is upon us with Turkey Day on Thursday. Until then, we will be turning our attention to the Southern Hemisphere for your “This Week in Ag” update.
South American Setback
It may not be the dictionary definition of "snowbirds," but turning our attention to the South American sun may be a way to get your mind off some early or heavy snowfall around the country. Unless, of course, you are a Bills fan and spent your weekend shoveling 77" of snow. Regardless, wheat harvest is underway in Argentina while drought concerns continue across the continent.
- Action in Argentina…The Rosario Grain Exchange has made significant announcements addressing the wheat crop in Argentina. As seen in the US, South American drought continues to weigh heavily on production forecasts. While the US was able to bounce back, estimates indicate the country could be looking at a nearly 50% decrease in production from last year. The Rosario Grains Exchange estimates a reduction of 11.2 million tonnes, putting production at 11.8 million tonnes.
- Wheat Woes…The lackluster production numbers of wheat expected to come from Argentina turns eyes to wheat prices as global strain seems to be hitting the crop hard this year. Not many countries are catching a break regarding wheat, but it is something to watch as shifts in wheat players are expected.
- Brazil's Bumper…Despite some weather woes to the south, Brazil seems to be making more progress as rain occurs. Farmers are timing planting progress in conjunction with available water to allow the country to realize record crop predictions. Eyes have long been on Brazil as its trade relationship with China is catching global attention. However, "China's soybean imports from Brazil fell 15% in October from the same month last year."
Let's Talk Money (and Turkey)...
Hosting Thanksgiving is no easy feat, but this year, you'll want to ask your family and friends to bring a side as inflation has received an invitation to join everyone's Thanksgiving dinner. If going to the grocery store is still on the to-do list, here is some insight on what to expect before checking out.
- Midwest is Best… The best-priced turkey, on average, can be found in Midwest states. While Mississippi has the lowest per lb price, coming in at $26.35, Hawaii boasts the highest price per lb at $50.35. This may be why lau lau and fish dishes are traditional favorites in Hawaii. Turkey, on average, is up 21% from 2021 across the board.
- Table for Ten… The American Farm Bureau Federation has an annual survey of Thanksgiving prices. This year, the conclusion is that a holiday dinner for ten will cost $64.05 as opposed to $53.31 in 2021. This is roughly a 20% increase. Other traditional favorites such as stuffing, dinner rolls, and sweet potatoes have increased by 69%, 22%, and 11%, respectively. Cranberries, however, have declined by 14%. Who has creative ways to use cranberries in unique ways?
Transportation Assimilation
After weeks, months, and years of following supply chain issues and transportation logistics taking hit after hit, some decent news has arrived for the ag industry. While there is still plenty to keep an eye on, good news is always welcome when talking about transportation.
- Back to the Black Sea… The Black Sea Grain Deal has been renewed for an additional 120 days as of last week. The UN intervention in renegotiating the deal has proven beneficial for both parties. Ukraine is looking to leverage its position to achieve the release of its citizens taken as prisoners of war while Russia and the UN set sights on fertilizer exportation. Ukraine will be allowed to continue exporting grain, while only 55.7 million tons were produced compared to last year's record of 86 million tons, which will likely impact overall export numbers.
- Rejection on the Railroad… As the days go by, the impending rail strike seems more plausible. Yet another topic to make headlines repetitively this year are the union negotiations taking place. Four out of 12 unions have voted against the deal, citing last year's profits as a reason for more pay, attendance policies, and paid sick leave as significant points.
What else you need to know…
- Presidential Pardon… Monday, November 21st, will be monumental for President Biden's two pardoned poultry friends. The birds will be named, pardoned, and sent to NC State University to live out their days in a climate-controlled pen rather than a convection oven. This will be the 75th year of the annual tradition.
- Overwintering Underway… Ukrainian crops may be left in the fields this coming winter as fuel shortages, weather, and ongoing conflict have not been helpful for farmers looking to harvest. The country, which historically harvested nearly 42 million tonnes in 2021, has only harvested 12.3 million tonnes as of last week.
- Turkey, Not Trade… Markets will be observing Thanksgiving on Thursday, November 24th. Black Friday will also be honored with some early closures on Friday, November 25th.
That's all we have for you this week, do you have anything for us? We'd love to hear from you with stories or recommendations for new sections to include! Drop us a line at news@barchart.com with any feedback or input.
More Grain News from Barchart
- NY Cocoa Prices Fall as Ivory Coast Deliveries Rise
- Sugar Prices Fall on Higher Brazilian Production Forecasts
- Coffee Prices See Support from Brazil Weather
- Wheat Market Red at Midday
/Microsoft%20Corporation%20logo%20on%20sign-by%20Jean-Luc%20Ichard%20via%20iStock.jpg)
/Advanced%20Micro%20Devices%20Inc_%20logo%20on%20phone%20and%20website-by%20T_Schneider%20via%20Shutterstock.jpg)
/Qualcomm%2C%20Inc_%20logo%20on%20phone-by%20viewimage%20via%20Shutterstock.jpg)
/Chipset%20held%20over%20rush%20hour%20traffic%20by%20Jae%20Young%20Ju%20via%20iStock.jpg)