by JOHN BANCROFT
USDA Crop Progress Report – May 26, 2013
- Corn planting was 86% complete which is up 15% from last week. This compares to 99% last year and 92% complete on 10 year average. The market expectation was near 85%.
- Soybean planting was 44% complete which is up 20% from last week. This compares to 87% last year and 65% complete on 10 year average. The market expectation was near 40%.
- Spring wheat was 79% complete which is up 12% from last week. This compares to 100% last year and 89% complete on 10 year average.
- Winter wheat condition was 31% good/excellent which is the same as last week
Crop Graph:
- To get your local corn spot price, simply add your local basis, i.e. new crop future $5.51 + local basis of -$0.75 = $4.76/bu or$187.39/tonne
Livestock
- US released the final rules to modify Mandatory Country of Origin Labelling (COOL) last week on May 23rd. The two major changes from the initial rule are the required labels are to include information about where each of the production steps occurred and it removed allowances for commingling of muscle cuts. The new labeling requirements go into effect on May 23, 2013 but there is a 6 month education and outreach program which means 100% compliance requirements will be delayed for six months. Both Canada and Mexico have stated they believe the amended rules still violate the World Trade Organization agreements and are prepared to take addition actions.
- Smithfield Foods Inc. (SFD) has confirmed that it has agreed to be acquired by Chinese meat producer Shuanghui Group for about $4.8 billion.
Disclaimer: This commentary is provided for information only and is not intended as advice
Posted on:
May 29, 2013