SOYBEANS THE DOWNSIDE LEADER IN REACTION TO USDA REPORTS... Soybean traders reacted to this morning's USDA Crop Production and Supply and Demand Reports the most negatively, as futures slipped into the close to finish with 40-plus cent losses in nearby contracts. USDA's reports weren't game changers, but they did show USDA's willingness to raise 2012-13 corn and soybean carryover. Click here for Pro Farmer's full report reaction.
INFORMA UPDATES ACREAGE PEGS... Sources familiar with Informa Economics say the firm has updated its 2013-crop acreage estimates, making minor adjustments to most projections. Informa reportedly projects winter wheat acreage at 42.5 million, 1.2 million above last year, but 50,000 acres below Informa's previous peg. Informa reportedly pegs 2013 corn acreage at 97.7 million, soybeans at 80.1 million and all cotton at 10.0 million acres. Sources say the firm told its clients disappointing winter wheat prospects in the Central Plains due to the lingering drought are expected to result in reseeding to other crops this spring.
USDA TRIMS 2012 AND 2013 BEEF AND PORK PRODUCTION PROJECTIONS... In this morning's November Supply & Demand Report, USDA trimmed its 2012 and 2013 beef and pork production projections from last month. Only minor revisions were made, but USDA now sees beef production slipping 4.2% in 2013 compared to 2012 and pork production declining by 1.4% in 2013 compared to 2012.
USDA also increased its 2012 average cash steer price projection by 75 cents to $122.47 and raised both sides of the range for 2013 average cash prices by $1 to $123 to $133. Meanwhile, USDA lowered its average 2012 cash hog price by 25 cents to $60.73 and left its 2013 price projection unchanged at $62 to $67.
BOEHNER AND OBAMA SIGNAL SOME GIVE ON FISCAL CLIFF ISSUES... President Barack Obama and House Speaker John Boehner (R-Ohio) both held press briefings today, and their statements signaled some possible compromises on key fiscal cliff issues, although Obama was more hard-hitting and appeared less flexible than Boehner.
Boehner called for reform of the tax code as part of a deal to avert the fiscal cliff, citing the Congressional Budget Office Report we reported in "First Thing Today" that showed the harmful consequences of falling off the cliff. Boehner said, "Now, 2013 should be the year we begin to solve our debt through tax reform and entitlement reform, and I'm proposing that we avert the fiscal cliff together in a manner that ensures that 2013 is finally the year that our government comes to grips with the major problems that are facing us. This will bring jobs home and result in a stronger, healthier economy. And a stronger, healthier economy means more Americans working and more revenues, which is what the president is seeking. This framework can lead to common ground, and I hope the president will respond today in that same spirit."
President Obama today invited congressional leaders to meet with him at the White House next week. In his first statement since winning reelection, Obama called on Congress to let the Bush tax cuts expire for individuals earning over $200,000 per year and families earning over $250,000. "Let’s extend the middle-class tax cuts right now. Let’s do that right now," Obama added. The president also said that while he is "open to compromise," he will not accept a Republican plan that only contains spending cuts. The president also noted he was encouraged to hear the House speaker "agree that tax revenue has to be part of this equation and I look forward to hearing his ideas when I see him next week."