The Aug. 12 U.S. Department of Agriculture crop acreage report could be the most bullish report for corn in the past 20 years. But when it comes to reports, there is no saying what actually will be seen.
Still, if the planted corn acres slips to 85 million or lower, as my work suggests, a scorching rally will unfold. Buckle up!
Here is a roundup of other agriculture news making headlines:
- This is the beginning of the end of the beef industry: “Part of the appeal of the new burgers is their smaller environmental footprint. Beef is the most wasteful food on the planet. Cows are not optimized to make meat; they’re optimized to be cows. It takes 36,000 calories of feed to produce 1,000 calories of beef. In the process, it uses more than 430 gallons of water and 1,500 square feet of land, and it generates nearly 10 kilograms of greenhouse gas emissions. In comparison, an Impossible Burger uses 87% less water, 96% less land and produces 89% fewer greenhouse gas emissions. Beyond Meat’s footprint is similarly svelte.” — Outsideonline.com, July 31.
- Beyond Meat’s competitor Impossible Foods plans to launch in grocery stores in September after getting FDA approval: “Beyond Meat’s rival Impossible Foods said Wednesday it will sell its plant-based burger in grocery stores in September after the Food and Drug Administration approved its key color ingredient. The regulator said it has cleared Impossible’s use of soy leghemoglobin — or heme — as a color additive, clearing the way for the maker of imitation meat to start selling its products in grocery stores.” — CNBC News, Aug. 1.
- Impossible Whopper goes nationwide at Burger King: “Burger King will begin selling the plant-based Impossible Whopper nationwide next week after a successful run in six regions. The rollout to 7,000 U.S. locations will be for a limited time, a typical practice in the fast food industry for new products. The chain won’t say how many of the burgers it’s sold since first introducing them in April, but did say it’s enticing more people to enter its stores.” — Associated Press, Aug. 1.
- This year’s corn crop is the second worst rated by the USDA since 2007: “And yet, corn prices have dropped 50 cents a bushel, more than 10% since June 28. What am I missing here?” — Commodity Insite, July 30.
- Analyst sees first drop in corn yield potential in a month: “So, the growing season drags along with the markets being lulled into complacency on what might be the worst U.S. crop in decades. But we don’t know it yet, as USDA can’t seem to get an estimate on the preventive planting acres (which is likely 10 to 15 million acres of corn and soybeans). The problem is this (corn) crop is late and susceptible to a lot more problems from frost date. We will lose crop production when it freezes, the only question is how much? Will it be 1% loss, or 3%, or 5% or more? As late as crops were planted and are maturing, God help us if we freeze two weeks early!” — Successful Farming, July 31.
- A highly accurate stock market predictor hit its most bearish level since the internet bubble: “The sense that the Federal Reserve’s widely expected interest-rate cut would be the last for a while drove stock investors to the exits on Wednesday, but that isn’t the only disturbing economic news shareholders have had to digest this week. Namely, July’s big increase in consumer confidence, which is anything but bullish for the U.S. market. That bodes ill for U.S. stocks, given where the CCI stands today, at its highest level in almost two decades. The high readings at the top of the internet bubble constitute just one data point, of course. But the inverse relationship between the CCI and the stock market’s subsequent performance is statistically significant.” – MarketWatch, Aug. 1.
- The U.S. Federal Reserve has sent a shiver through global markets: “The central bank just cut interest rates for the first time in more than a decade. But in failing to signal that more rate cuts are coming, Chair Jerome Powell has spooked investors, who had hoped the small cut would be just the start. The Dow fell 334 points on Wednesday, or 1.2%. The S&P and Nasdaq each ended the day with losses of more than 1%. U.S. stock futures have stabilized, but Powell’s language is reverberating globally.” – CNN, Aug. 1.
- ADM profit plunges more than 40% on U.S. weather, trade war woes: “U.S. grains merchant and food processor Archer Daniels Midland Co. on Thursday reported a 41.3% drop in second quarter adjusted profit and missed Wall Street expectations, after being battered by the U.S.-China trade war and severe U.S. weather this spring that caused it significant supply-chain woes.” — Reuters News, Aug. 1.