July
27 , 2007
The week that was...
House approves
farm bill. The full House gave their stamp of approval to the farm bill
(HR 2419) on a 231-191 vote. The typically bipartisan farm bill turned more
partisan with the inclusion of a provision that closed a tax clause which had
allowed foreign companies to shield income from their U.S. based subsidiaries
from income taxes. Attention will now turn to the Senate where action won't
take begin until September with markup in Senate Ag Committee.
Johanns reacts
to House farm bill. USDA Secretary Mike Johanns said the idea of the tax
hike in the House farm bill "didn't come from farmers," USDA Sec.
Mike Johanns said Friday afternoon at the National Press Club. "We have
seen the polarizing impact of developing farm policy under the cloak of secrecy.
I urge the Senate to chart a different course and do so under the bright light
of transparency."
HUGE wheat sales.
U.S. wheat e xport sales for the week ended July 19 surged to 2.078 million
metric tons (MMT), the first sales that large in 11 years. The business came
as world wheat supply concerns are mounting and the U.S. currently has the most
exportable supplies. The news was one of the factors in wheat prices shooting
higher again this week.
HRS wheat tour.
The Wheat Quality Council’s sampling of 286 fields in North Dakota, Minn.
and South Dakota found a 37.3 bu. per acre yield, up from 31.7 bu. in 2006.
The Tour's Durum yield was put at 29.0 bu. per acre. Heat was not a big factor
for this year's spring wheat crop.
USDA rechecking
wheat acres.
USDA will resurvey farmers in Kansas and Oklahoma about their wheat harvested
acres as they gather data for the August Crop Production Report. Wet weather
prompted the recheck and any shifts in acres will be reported in the August
10 report.
The
week ahead...
End of the month.
July comes to a close next week and that could impact trade in grain and
soybean futures as traders square up their books to close out business for the
month. That could also accent moves if there bullish or bearish news thrown
at the market next week.
Crop ratings
Monday.
USDA's Weekly Crop Progress Report may well show additional condition rating
declines for corn and soybeans. Although with rains reaching into some areas
of the Corn Belt this week, it might stabilize ratings in some states.
Weekly Export
Sales. The Thursday report will certainly be watched by wheat traders with
the highest sales reported in more than a decade in the report out this week.
Corn and soybean sales levels will also be important, but wheat is the star
of the demand show right now.
Drought outlook.
Another update on the forecast for drought conditions comes from government
weather forecasters this week. Also, traders will be watching extended forecasts
to see if they still contain hot and dry conditions for the Corn Belt when soybeans
enter their reproductive phase.
Lawmakers headed
out. Next week will be their last full legislative week until September.
Lawmakers will exit Washington for the August recess having just completed the
farm bill on the House side, and action on the Water Resources Development Act
conference report could also be on tap in the House and Senate.
Until next week,
keep the optimism for agriculture alive!
