In the overnight session the grains traded slightly higher with December corn up ¼ cent, November soybeans up ¾ of a cent and December Chicago wheat up 2 cents. December 2017 Corn is now trading at 3.64 ½ cents which is just six cents above the contract low of 3.58 ½. Any push lower should be met with technical support around that contract low that was set August 31st 2016.
This morning, China’s Agricultural Ministry confirmed a bird flu outbreak at quail farms in Luodian. The outbreak infected 13,103 quails and culled 8,110 birds. This was the second major bird flu outbreak in China this year with the first occurring at the beginning of the month. It was also reported this morning that the Philippines found a second outbreak of bird flu 50 miles away from the first reported case reported a week ago. Both cases of the bird flu were found in quails.
On Thursday the USDA announced two positive trade developments. The first is that South Korea lifted a ban on U.S. poultry and eggs and the second was that the U.S and Argentina have agreed to a deal allowing the U.S to import pork into their country. This is the first time since 1992 that U.S. pork has been allowed to enter Argentina and should support the longer term fundamentals of the hog market.
France reported that 79 percent of their corn crop was rated good-to-excellent which was unchanged week over week. They also showed that their soft wheat harvest is wrapped up with 99 percent harvested up 2 percent from this week before.
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