July 25 Pro Farmer Monday Morning Wake Up Call
Jul 25, 2011
Every Monday morning, Pro Farmer editors record the "Monday Morning Wake Up Call." It's a recorded message available by clicking here.
But... if you'd rather read the report instead of listening, each Monday morning I'll update the copy from the call here to help set your agenda of key issues that will be impacting the grain and livestock markets in the week ahead.
Monday Morning Wake Up Call
Good morning ... this is your July 25th edition of the Pro Farmer Monday Morning Wake Up Call.
House GOP leadership talks with President Obama reached a clear impasse late Friday, although all sides are still talking with each other. But the latest strategy has leaders in the House and Senate working on their own debt limit/budget cut proposals. The House plans to vote on its fast-changing plan on Wednesday. If that proposal includes balanced budget language, Senate Democrats will not vote for it and the focus would turn to Democratic Majority Leader Harry Reid's (D-Nev.) plan, which currently does not have any cuts in entitlement programs, a move guaranteed to bring strong GOP opposition. President Obama is now mostly on the sidelines, but insists he would veto any short-term plan and he instead prefers a debt limit extension that goes into 2013.
Grain futures were under pressure overnight with better-than-expected rains moving across key areas of the Corn Belt over the weekend. O’Hare airport in Chicago actually saw the wettest 24-hour period on record with nearly 7 inches of rain. Rains in Illinois, however, were very inconsistent – too much in the north and not nearly enough in the middle of the state. The Corn Belt forecast for this week includes some hot temps, but it also includes another shot of rain to help offset some of the heat stress. It should be a “good week” for the corn crop.
This afternoon’s Crop Condition Report is expected to show steady to slightly lower corn and soybean ratings. Most importantly, we’ll focus on how much of the corn crop is silking as of July 24, compared to the 35% silking pace on July 17. That change will give us an idea of how much of the U.S. corn crop pollinated during last week’s hot temperatures.
Friday’s Cattle on Feed Report will be slightly negative for live cattle futures today. More cattle on feed than expected means a slightly bigger supply of beef, but it should also be a positive for corn prices as it suggests bigger-than-expected corn-for-feed demand. The twice-yearly Cattle Inventory Report showed continued slow contraction of the beef herd with no indication of herd rebuilding at this time. Long-term, that should be supportive for cattle prices.
That’s your Pro Farmer Monday Morning Wake Up Call.