First Thing Today (VIP) -- August 6, 2013

August 6, 2013 01:35 AM
 

GOOD MORNING!

GRAIN FUTURES MIXED OVERNIGHT... As of 6:30 a.m. CT, grain and soy complex futures were mixed amid bull spreading. SRW wheat futures were favoring a firmer tone, but HRW and HRS were mixed. The U.S. dollar index is slightly weaker this morning.

CORN, BEAN CCI RATINGS IMPROVE... When USDA's weekly crop condition ratings are plugged into the weighted Pro Farmer Crop Condition Index (0 to 500 point scale), the corn and soybean crops each improved 2 points to 367 and 363, respectively. For corn, improvements in Illinois and Nebraska more than offset a mild decline in Iowa. For beans, improvements in Illinois, Missouri, Nebraska and Ohio more than made up for minor declines in Iowa and Minnesota. Click here for more.

MILD CONDITIONS TO CONTINUE ACROSS CORN BELT... The National Weather Service forecast for Aug. 11 through 15 calls for below-normal temps and mostly normal precip for the eastern Corn Belt. Above-normal precip is expected across most of the western Corn Belt, which is beneficial to the drier areas of the region. Traders continue to view weather as favorable for crop development.

FSA CLEARS ADDITIONAL CRP ACRES FOR EMERGENCY HAYING/GRAZING AS DROUGHT HELP... As severe drought conditions persist in certain regions throughout the country, USDA said they will offer temporary assistance to livestock producers through the Conservation Reserve Program (CRP). Under limited conditions, farmers and ranchers affected by drought will be allowed to use certain additional CRP acres for haying or grazing under emergency conditions while maintaining safeguards to the conservation and wildlife benefits provided by CRP. In addition, USDA announced CRP annual rental payments related to emergency haying or grazing will be reduced from 25% to 10%. Further, the sale of hay will be allowed under certain conditions.

RECORD BRAZILIAN CROPS SEEN IN 2013-14.... Brazilian consulting firm Celeres says the country will likely produce 85.2 MMT of soybeans in 2013-14, which is realized, would be 4.9% above this year's record crop. It expects a corn crop of 85.1 MMT. In its latest report, the firm pegs soybean exports for the upcoming marketing year at 41 MMT and says the 2013-14 crop marks a "structural turning point for this industry, with soy exports surpassing volume processed locally for the first time."

BOXED BEEF TRADE DISAPPOINTS... Choice beef values softened by 75 cents and Select values were 36 cents lower yesterday on very light movement of 123 loads. Meanwhile, this week's showlist is about steady with week-ago, which is giving feedlots hope for at least steady prices with last week. But until the beef market signals a low has been posted, upside potential in cash and futures will be limited.

PORK VALUE FIRM; MOVEMENT LACKLUSTER... Pork cutout values improved 56 cents yesterday, but movement was lackluster as just 256.6 loads changed hands. Packers say they are having no difficulty securing supplies for this week's needs. As a result, the cash market is expected to be mostly steady today.

OVERNIGHT DEMAND NEWS... Bangladesh has issued a tender to buy 50,000 MT of wheat. Egypt set a tender yesterday to buy an unspecified amount of wheat for late September delivery, with results expected today. Taiwan is seeking to purchase 60,000 MT of corn.

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