This week there are four key reports and weather to watch that could have significant impacts on commodity markets the week of July 15, 2024. This Farms.com column tracks key events in commodity marketing impacting the agriculture industry! The series of article shares issues to watch the following week, issues that may have an impact on commodity prices in the coming weeks.
By Devin Lashley
Farms.com Risk Management Intern
1. The USDA Cattle on Feed Report comes out Friday July 19th and as of June 1st, 2024, U.S. cattle and calves on feed for slaughter in large feedlots totaled 11.6 million, slightly below last year. May placements were 2.05 million, up 4 percent from 2023, with net placements at 1.98 million. This month's cattle on feed will likely show similar figures with cattle on feed down this year but still higher than last year's figures, demand has been spotty for U.S. cattle and the latest exports report has not done much to alleviate worries with cattle exports at a marketing year low.
2. The USDA Crop Progress Report comes out Monday July 15th and will likely show crop conditions get better by 1-2 points after hurricane Beryl provided timely rains in July to some of the driest U.S. corn and soybean Eastern Corn Belt growing regions.
3. Keep an eye on the weather in Russia. For the last couple of weeks the weather in eastern Ukrainian and southern Russian growing regions has been abysmal, with very little rain and temperatures ranging from high 90s to low 100s degrees Fahrenheit has been battering the area, with very little room for plants to grow or pollinate correctly. If this trend continues it's likely we might see some reduction in the crop sizes so a worst-case scenario may not yet be priced in!
4. The USDA Drought Monitor Comes out Thursday July 18th and will likely show a decrease in droughts across the Midwest and southern growing regions with a possibility for future expansion. Soil moisture should remain above average with no extreme heat to be found in the corn of the U.S. midwest corn belt.
5. In the next few weeks tech earning season is coming and AI is top of mind. It will dictate the direction on stocks and whether the AI craze has slowed down or accelerated even further.
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