MILD CORRECTIVE GAINS OVERNIGHT... As of 6:30 a.m. CT, corn futures are trading mostly 3 to 4 cents higher, soybeans are mostly 2 to 6 cents higher, SRW wheat is 4 to 5 cents higher, HRW wheat is 2 to 4 cents higher and HRS wheat is 1 to 2 cents higher. The U.S. dollar index is modestly firmer this morning.
JAPAN LIFTS BAN ON U.S. WESTERN WHITE WHEAT... Japan's ag ministry has lifted the ban on the import of U.S. western white wheat, effective Aug. 1, after the two countries agreed on a testing protocol. Japan has also lifted the ban on shipments of U.S. soft white feed wheat effective Aug. 7. Wheat shipments will reportedly be tested for GMO material before leaving the U.S. and upon arriving in Japan. On Monday, USDA's Animal and Plant Health Inspection Service (APHIS) announced that all available evidence points to the presence of unauthorized glyphosate-resistant wheat on a farm in Oregon, which triggered Japan's ban, as being an isolated incident. APHIS will continue reviewing field test reports in an effort to identify the cause of the Oregon incident.
CORN AND BEAN CCI RATINGS SLIP AGAIN... 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 declined 1 point to 365 and 361, respectively. For corn, slight crop deterioration in Iowa, Illinois, Indiana and Nebraska outpaced modest improvement in Kansas, Michigan, Minnesota and Ohio. For soybeans, mild declines in Iowa, Illinois and South Dakota were slightly greater than modest improvements in Indiana and Ohio.
PRESIDENT OBAMA TO OFFER NEW DEAL ON CORPORATE TAXES, JOBS... President Barack Obama today will extend a new offer to Republicans in which he would back an overhaul of the corporate tax system in exchange for a guarantee that a resulting one-time windfall be used to underwrite various job creation proposals. Obama will offer the plan in a speech he is to deliver in Chattanooga, Tennessee, in another attempt to win over Republican lawmakers who've opposed White House requests for new spending on roads and bridges and other projects aimed at boosting employment.
CANADA TO ANNOUNCE SUPPORT OF BEEF INDUSTRY... Canadian Ag Minister Gerry Ritz will hold a press briefing today to make an announcement "in support of Canada’s beef industry," according to a media advisory. There’s no further explanation about what the announcement will be. Canada Beef, the organization which represents research, marketing and promotion of the Canadian cattle and beef industry, is also part of the event.
HURDLES TO CLEAR BEFORE HIGHER CASH CATTLE TRADE... Cash cattle strength in Nebraska last Friday has traders looking for firmer cash bids this week. But a sluggish start to boxed beef trade Monday that included lower prices and poor movement, along with bigger showlist numbers are hurdles that stand in the way of feedlots getting packers to raise cash cattle bids in the Plains.
PORK CUTOUT STRENGTHENS... The pork cutout value firmed a modest 10 cents Monday and has now posted gains for four consecutive days. Seasonally, the pork product market may be putting in a short-term low, but heavier price pressure on the product market will be seen this fall as slaughter numbers and pork production rise.
OVERNIGHT DEMAND NEWS... Taiwan purchased 97,200 MT of U.S. wheat. South Korea bought 50,000 MT of Black Sea origin corn. Japan is seeking 178,212 MT of wheat in its weekly tender, including 89,579 MT of U.S. western white wheat -- its first tender for that flavor since May 30.