A couple, weekly grain reports provide a glimmer of hope for United States soybean producers.
AUDIO: Brian Grossman, Zaner Ag Hedge
The U.S. Department of Agriculture, Agricultural Marketing Service on Monday released its weekly Export Inspections report. Zaner Ag Hedge market strategist Brian Grossman says USDA continues to report strong demand for grain internationally.
“Soybeans, needing 710,000 and coming in at 635,000. Still a little bit on the low side, but we’re moving it given the headwinds the soybean market has to deal with right now,” Grossman said. “Corn, also coming in pretty decent at 1.2 million. A little bit on the low side. We’d like to see it over 1.3 million, which is what we need on a weekly basis. Again, a lot of headwinds and we’re still moving this grain out the door. However, we are giving up a lot of our morning session strength.”
The National Oilseed Producers Association (NOPA) also released its weekly soybean crush statistics. Grossman says NOPA’s report brought optimism to the soybean market.
“NOPA crush came in at a very optimistic 159.2 million bushels crushed. That is a new record by a pretty significant margin. For as much of a beat down this soybean market has had, soymeal – equally as big beatdown, the crush margins are still very positive. As long as we are getting those exports, which we exported about 850,000 tonnes through the month of June, the demand is still there,” Grossman said.
Grossman notes export demand has heavily influenced the spike in crush. He adds demand domestically also holds strong.
“Overall, exports are going to be a big key,” Grossman said. “But, USDA is projecting total domestic appearance of 35,000 tonnes. That is continuing to increase over last years 33,000. And it is a good source for feed. We have a large cattle herd out there trying to consume it and hogs.”