Cargill Inc.’s efforts to supply food companies with non-genetically modified ingredients have come under attack from the other side of its business: farmers.
In common with several other large agribusinesses, Cargill is adapting to a shift in consumer taste toward more products labeled non-GMO.
And just like those companies, it too has agreed to allow the Non-GMO Project, a U.S. non-profit group, to verify some of its supplies to ensure they’re free of ingredients such as modified soy and corn.
But in recent days, Cargill, the country’s largest private company, has found itself on the defensive against criticism on social media over the relationship.
The source of the controversy is the Non-GMO Project’s position that there’s no scientific consensus on the safety of GMOs.
Corn closed the week 8.5 cents higher.
Last week, private exporters did not announce any private sales.
Weekly export sales of corn showed a total of 33.1 million bushels (841,900 metric tons) with 28.2 mb (716,200) for the 2016-2017 marketing year.
This was above the 16 mb (406,400 mt) needed this week to be on pace with USDA’s March demand projection of 2.225 billion bushels.
Corn planting progress in the southern states is well ahead of the 5-year average as Louisiana is 80 percent planted (48 percent average), Texas 45 percent (34 percent average), Mississippi 30 percent (19 percent average) and Arkansas 19 percent (15 percent average).
In the weekly EIA report, ethanol production unexpectedly rose to 1.05 million barrels per day versus 1.05 mbpd the previous week.
This was the third largest production week in history. Ethanol stocks rose to record levels.
The quarterly planting intentions report revealed only mild surprises to the trade with U.S. corn planted acres at 90 million, slightly below trade guesses of 90.9 million, down 4 million from 94 million seeded a year ago.
Corn stocks were revealed at 8.6 bb versus estimates of 8.5 bb, considerably larger than a year ago numbers of 7.8 bb and will show up in the April supply/demand numbers.
Strategy and outlook: Commercials are bullish and producers should have re-owned previous sales during March ahead of the growing season.
Soybeans closed the week 31 cents lower.
Last week, private exporters reported a sale of 165,000 mt of soybeans to China for the 2017/18 marketing year.
Weekly export sales of soybeans showed a total of 36.6 mb (996,600 mt) with 25.0 mb (681,000 mt) for the 2016-2017 marketing year. This was well above 1.4 mb (37,800 mt) needed this week to be on pace with USDA’s March demand projection of 2.025 bb. In the quarterly stocks and acreage report, U.S. soybean acres are forecast at a record large 89.5 million, larger than the estimates of 88.3 million and 6.1 million larger than the 83.4 million that were planted a year ago.
Soybean stocks came in at 1.735 bb versus estimates of 1.676 bb and also larger than last year’s 1.531 bb. The larger soybean stocks will show up in the April supply/demand report.
The news for soybeans is largely bearish, however the 2017 is upon us and can produce a significant rally if weather is adverse.
The COT is bullish for soybeans, although it is not a timing indicator.
Strategy and outlook: Maintain re-ownership strategies into the summer months. Beans fell to key support, a great time to increase re-ownership.
This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solution’s Research Department. Brian Hoops can be reached at (605) 660-1155.
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