May 31 Monday Morning Wake Up Call
May 31, 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 a Tuesday morning edition of Pro Farmer’s Monday Morning Wake Up Call. We hope you had a safe and enjoyable Memorial Day weekend. And to all the veterans and active military that might be listening, thank you for your service.
Grain futures were mixed in overnight trade as the markets are looking for direction coming out of the three-day weekend. While Friday’s gains in the corn market were impressive, traders will refocus on planting progress and demand for the week ahead. The primary concern on corn is the northwest Corn Belt where Prevented-Plant dates passed last week. After another shot of rain over the weekend, North Dakota is likely losing corn acres. The second area of concern is the eastern Corn Belt. Ohio is an absolute mess with water standing around the weeds in most fields. Prevented-Plant dates start in Ohio June 5.
The weather forecast is warmer and drier for the eastern Belt this week, adding a plate-full of uncertainty to the decision making process for growers in eastern Indiana and Ohio. The trick for those growers will be to balance a Prevented-Plant payment against revenue potential on late-planted corn. And – as is usually the case – Mother Nature won’t make the analysis easy.
Russia will lift its ban on grain exports on July 1 this year. The ban will have been in place for 11 months, following a drought-dominated growing season. Russia also says it is looking to get back into the grain export business very soon for the 2011-12 marketing year.
Also, China says it is looking at a “bumper wheat crop” for the 2011-12 marketing year.
There is plenty on tap for agriculture in Washington this week. First, legislation that would allow states to opt-out of corn-based ethanol use has been introduced. The bill does not appear to have widespread support, but it underscores the push to restructure ethanol policy. Also, USDA’s spending plans for fiscal year 2012 will be debated this week, and Senate Ag Committee Chairwoman Debbie Stabenow will hold a farm bill field hearing in Michigan today.
That’s your Pro Farmer Monday Morning Wake Up Call.