Commodity Insider May 31, 2017

CROPS OK DEPENDING WHERE YOU ARE 

It's still a mixed bag out there on corn and beans. Overall, planting and emergence is close to average nationally, but there are parts of IL, IA, IN which have been wet and cold long enough to force a number of replants. Looking for a warm up over the next few weeks to help get the crop moving along a little faster.

 Source: USDA

Source: USDA

RECORD TURKEY PRODUCTION

Urner Barry says 2016 turkey production in US fell just 4% short of the record set in 2008. This year is tracking well also according to the USDA. The ready-to-cook (RTC) turkey slaughter estimate for 2017 is 6.12 billion lb., just below the 2008 record of 6.2 billion lb. The big difference is weight. We are slaughtering fewer turkeys but at higher weights. The 2008 average YTD was 29.76 lb compared to 31.95 lb this year so far.

AUSTRALIA CHASING CHINESE PORK MARKETS

Australian pork producers fighting increased lower cost imports are countering by chasing niches markets in China according to The Australian. Australia imports 171,000 tonnes of frozen processed pork products valued at $658 million annually, accounting for 70 per cent of all bacon and about 45 per cent of pork consumed locally.Being on the front foot preparing for change is a credo Queensland-based producers Aaron and Scott Scheid went to China last year to look at opportunities for high-quality pork. “We had to do a better job branding our product, having a strong online and social media presence and telling the story behind the brand, about our pig farms here at Allora and Bell that will appeal to high-end Chinese consumers,” Mr Scheid said. “Without those things, there’s probably no potential to get to the consumer in China; they produce a lot of their own pork but we still think there will be opportunities there at the top end for premium Australian pork if we do it right.” The Scheids have started exporting to Hong Kong and will move to mainland China as soon as fresh pork exports to China are formally approved — entry with low tariffs is now covered by the China-Australia Free-Trade Agreement 

DEALS

  • Swiss commodity giant Glencore is taking a run at U.S. grain trader Bunge Ltd. but it make take a while for the deal to get put together and will likely face government scrutiny on both sides of the pond. Glencore bought Canadian grain merchant Viterra Inc. for $4.8 billion in 2012
    It is already one of the world’s two biggest wheat traders, handling 18% of the world’s seaborne trade, and is one of the top three in Russia, Canada, Australia and the E.U. 
  • Alltech continues to grow its feed manufacturing capacity with the purchase of Montana-based WestFeeds. The deal includes manufacturing plants in Billings and Great Falls as well as feed stores in in Billings, Dillon, Great Falls, Lewistown and Miles City.