Will crop tour reports impact the markets?
This week there are 2 crop tours reports and three key federal reports to watch that could have significant impacts on commodity markets the week of August 19, 204. This Farms.com column tracks key events in commodity marketing impacting the agriculture industry! The series of article shares issues to watch the following week, issues that may have an impact on commodity prices in the coming weeks.
By Devin Lashley
1. The DTN Digital Tour Data comes out this week though will likely not have much impact until next week, The seventh annual DTN Digital Yield Tour, running from August 13-16, will introduce new yield models for corn and soybeans. These models incorporate proprietary historical weather data and insights from farmers and agronomists across the Corn Belt. They have already reported a record 205 BPA in Iowa, the second largest corn producing state in the U.S.
2.The Annual Pro Farmer Crop Tour kicks off on August 19th and ends on August 22nd and will likely show more of the same of what we have been hearing from the USDA and other crop scouting done across the Midwest. Record yields in major corn and soy producing areas are more than offsetting any areas that have had any major issues, it's likely the pro farmer crop tour will further solidify what we already know.
3. The USDA Cold Storage Report comes out on Friday, August 23rd, and will likely show a mixed bag for pork and beef stocks. Weekly exports for beef as of this week have been at a marketing year high whereas pork is currently sitting at a marketing year low. The last report reflected red meat stocks at 929.67 million pounds, 5 percent lower than last year due to strong demand. Beef in cold storage was slightly down at 423.684 million pounds, while pork dropped 9 percent to 481.887 million pounds.
4. The USDA Cattle on Feed Report also comes out on Friday, August 23rd, and will likely show continued increase in inventory. The fed cattle portion remains a larger percentage of the total, as cow slaughter declines. Packers are reviewing union contracts to manage low volumes through beef plants, aiming to balance supply.
5. The U.S. Fed Federal Open Market Committee Minutes will be published on Wednesday, August 21st, and although won't provide anything major as far as new information is concerned, it's still likely to provide a boost to markets as they continue to hint at rate cuts come September. Current CME projections for a 0.5 percent September rate cut have gone down to 25.5 percent as of August 15th.
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