Feed Ingredients Report: Week Ending Sep. 28, 2018

Weekly Average Price History

Week	Corn	Soybeans	Wheat SRW
Sep. 30, 2018	3.62	8.47	5.17
Sep. 23, 2018	3.49	8.33	5.17
Sep. 16, 2018	3.58	8.36	5.13
Sep. 9, 2018	3.54	8.29	4.92

• On Thursday, the International Grains Council (IGC) raised its forecast for world corn production in the 2018-19 season by 10 million tons to 1.074 billion tons, driven by improved crop outlooks in the U.S., the European Union and Ukraine.
• The IGC reported world soybean production in 2018-19 at 370 million tonnes, up from a previous forecast of 366 million and the prior season’s 339 million.
• IGC on soybeans: “Brazil and the U.S. are likely to thresh record crops, and with output in Argentina expected to rebound, global production could expand nine percent, year-on-year.
• The White House is considering imposing restrictions on biofuel credit trading to prevent companies from hoarding credits and driving up prices. The restrictions are part of a deal expected to be unveiled in advance of the midterm elections that includes lifting the ban on summer sales of higher ethanol blends of gasoline. 
• Lifting the summer ban on sales of so-called E15 gasoline would bolster vulnerable midwest Republicans in competitive election contests and appease corn farmers stung by President Donald Trump’s escalating trade wars.
• Corn harvest progress was reported at 16 % complete, spot-on the average estimate and up 7% week-on-week, 6% above the pace of last year and 5% above the 5-year average.
• Soybean harvest is 14% complete, ahead of the 5-year average of 8% and last year at this time, when 9% of the crop had been harvested
• Oil World reported that Argentina will need to start buying more U.S. soybeans as domestic soybeans are exported to China. Trade groups in Brazil suggested the U.S. could export one million metric tons of soybeans to Brazil. 
• China has sold about 83 million tons of corn out of reserves this season and some are predicting up to 100 million tons will be sold by the end of the marketing season.
• The average domestic price of cash China soybean meal is near its highest level since November 2014.

Weekly Spotlight

The USDA issued higher than expected September 1 corn stocks indicating that last year’s crop may have been understated. The higher-than-expected number adds to an already burdensome stock situation.