MARKET NEWS HIGHLIGHTS
July 11, 2018
USDA reported the total US hog population as of June 1st
at 73.451 million head, 3% larger than last year and a new record
for this time period. Hogs kept for breeding totaled 6.320 million
head, up 2% on the year, and the largest breeding herd for any
quarter since June 1999. Total market hogs were pegged at 67.131
million head (103%). March-May farrowings were estimated at 3.121
million head, up 4% from last year. Farrowing intentions for the
June-August quarter came in at 3.170 million head, up 2% on the
federal jury ruled that Smithfield Foods should pay two neighbors
more than $25 million for unreasonable nuisances they suffered form
odors, flies, and rumbling trucks after Smithfield expanded near
their homes. This is the second court case to go against Smithfield
in recent months. The first case ended in April with jurors
awarding 10 neighbors $51 million. The fine was cut to $3 million
because North Carolina law limits punitive damages. The damages
from the second trial are expected to be slashed also. The April
verdict led North Carolina legislators to pass a law creating new
barriers again nuisance lawsuits that all but eliminate the right of
neighbors to sue Smithfield Foods, its contract growers, or any
other agribusiness. More than half a dozen lawsuits are scheduled
for trial yet this year against Smithfield for its open-pit waste
pork was hit by a second round of retaliatory tariffs the first week
of July from both Mexico and China. Mexico imposed a 10% tariff on
and that rate was increased to 20% on July 5th.
China slapped US pork imports with a 25% duty in April, and this
tariff was increased by an additional 25% on July 6th.
the quarterly Grain Stocks report issued on June 29th,
corn stocks were reported at 5.306 billion bushels. This was up 77
million bushels from last year and was record-large for June 1st.
Soybean stocks were also record-large at 1.222 billion bushels, an
increase of 256 million bushels over a year ago. Final 17/18 US
wheat stocks were pegged at 1.080 billion bushels, down from 1.181
billion bushels in the 2016/17 crop year.
announced their proposed renewable fuel standards for 2019 on June
EPA proposed an increase in overall biofuel volumes from 19.29
billion gallons in 2018 to 19.88 billion gallons in 2019. That
includes leaving corn ethanol at 15 billion gallons. EPA also
announced it had granted waivers to the RFS in 2016 and 2017
totaling 2.25 billion gallons of biofuels. These gallons were not
reallocated by the latest EPA proposal. EPA Administrator Scott
Pruitt tendered his resignation to President Trump on July 5th.
announced a 25% tariff on US soybeans as a retaliatory move against
the $34 billion worth of Chinese imports targeted by the Trump
administration. The US plans to impose tariffs on an additional $16
billion of Chinese goods in two weeks. Soybeans are one of 517 food
and agriculture-related products China has put tariffs on in
response to the US tariffs on Chinese products, according to USDA's
Foreign Agriculture Service.
According to the USDA June Acreage report, Kansas farmers planted 5.40 million acres to corn (down 100,000 acres from last year), and 4.85 million acres to soybeans (down 300,000 acres from last year). Sorghum acreage in Kansas increased 250,000 acres from a year ago to 2.85 million acres. Nebraska corn acreage was reported at 9.70 million acres (up 150,000) and soybean acres were at 5.50 million (down 200,000). Corn acreage in Missouri was estimated at 3.40 million acres (even with last year), while soybean acres were seen at 5.80 million (down 150,000).