CORN AND BEANS MILDLY FIRMER, WHEAT LOWER OVERNIGHT... As of 6:30 a.m. CT, corn futures are fractionally to 1 cent higher, soybeans are 1 to 5 cents higher expect for the August contract which is 4 cents lower and all three wheat flavors are 2 to 4 cents lower. The U.S. dollar index is holding near unchanged with a modest downside bias.
CHINA CLEARS FIRST ARGY GMO CORN SHIPMENT... China has approved a 60,000-MT GMO cargo of corn from Argentina -- the first commercial GMO corn shipment from Argentina to China -- according to Argentina's ag minister. He says the shipment arrived in the southern Chinese port of Shenzhen in mid-July and was purchased by state-run grain trading firm COFCO and sold to two feedmills.
FED TAPER TALK CONTINUES TO PRESSURE MARKETS… Comments by two Fed officials Tuesday that the tapering of asset purchases by the U.S. central bank could start as soon as the September FOMC meeting helped weigh on U.S. stock markets and continued to pressure Asian markets overnight. Meanwhile, the Bank of England shifted its guidance on policy, stating it would keep benchmark rates and bond buys at the current levels until the UK jobless rate dips to 7% with most expecting no major shift now for more than 2 years based on current BOE projections.
U.S. AG TRADE SURPLUS RISES IN JUNE…U.S. agriculture registered a trade surplus of $1.396 billion as the decline in imports outpaced the decline in exports. This marked a recovery from May which saw the ag trade surplus fall under $1 billion for the first time since July 2007.
U.S. CROP INSURANCE PAYOUTS FOR 2013 KEEP RISING… U.S. crop insurance indemnities for 2013 crops have hit $1.574 billion with wheat continuing as the largest component at $937 million, a reflection of drought in Plains HRW wheat areas in particular. For 2012, the indemnities are at a record $17.387 billion with the loss ratio at 1.57. -- first year since 2002 that the loss ratio has been above 1.0 for the program.
BOXED BEEF MARKET STRENGTHENS, BUT... Boxed beef prices were slightly higher Tuesday, but movement remained light at just 144 loads. Until packers start actively moving beef at higher prices, there won't be solid signs of a low. And buying interest in cattle futures will be limited until traders are confident cash fundamentals have bottomed.
PORK CUTOUT CONTINUES TO STRENGTHEN... The pork cutout value firmed another 80 cents Tuesday and movement improved to 361.5 loads. With the product market strengthening and cutting margins solidly in the black, packers are expected to keep cash hog bids steady to firmer at most Midwest locations today.
OVERNIGHT DEMAND NEWS... Iraq purchased 150,000 MT of wheat -- 100,000 MT Australian and 50,000 MT Canadian. Japan purchased 52,590 MT of feed wheat out of a tender for 120,000 MT of feed wheat and 200,000 MT of feed barley.