VARIED TRADE OVERNIGHT... As of 6:30 a.m. CT, corn futures are trading narrowly mixed, soybeans are 5 to 6 cents higher in old-crop contracts and fractionally to 2 cents higher in new-crop contracts, Chicago wheat futures are 1 to 3 cents lower, Kansas City wheat is mostly 2 to 3 cents lower and Minneapolis wheat is mostly 1 to 2 cents lower. The U.S. dollar index is under pressure this morning.
HOUSE NOW FOCUS FOR FARM BILL END ZONE... It was widely expected that the Senate on Monday would approve its version of the farm bill, and that occurred via a 66-27 vote. While some say this puts pressure on the House to follow suit, that is a naive assessment at best. The key issue in the House will be whether or not Republican leaders can get an overwhelming number of their members to vote for the bill because they cannot count on many Democratic members to agree to a bill with far more cuts in food stamps than they want, and considerably more reductions than the Senate version . And, House floor amendments could actually increase the size of the food stamp cuts from the current pending $20.5 billion level, versus only $4 billion in the Senate-passed measure. The House will likely debate the farm bill the week of June 17. House Speaker John Boehner (R-Ohio) on Monday pledged a fair and open process. However, in a statement, Boehner again criticized the dairy policy provisions in the farm bill proposal.
CORN CCI DROPS... When USDA's weekly crop condition ratings are plugged into the weighted Pro Farmer Crop Condition Index (0 to 500 point scale), the corn crop dropped 8 point to 363. Last year on this date, the crop had a 368 CCI rating. Iowa accounted for the bulk of the ratings decline, with lesser deterioration in Illinois and Minnesota. The Indiana corn crop showed modest improvement over the past week.
STRONG START FOR BOXED BEEF MARKET... Choice boxed beef prices were $1.59 higher Monday (Select cuts rose 7 cents) and movement was solid at 188 loads. But cattle traders aren't likely to put much stock in the strong start in the product market as they continue to have bearish attitudes.
PORK CUTOUT STRENGTHENS... The pork cutout value was $1.96 higher Monday as all cuts except hams posted strong gains and they were 40 cents higher. While movement was lighter than hoped at 277.6 loads, the price gain will be enough to keep cash hog bids steady to firmer across the Midwest amid tight market-ready hog supplies.
OVERNIGHT DEMAND NEWS... South Korea purchased 134,000 MT of optional origin corn. Japan is seeking 157,439 MT of wheat in its weekly tender. But for a third straight week, the tender does not include U.S. western white wheat as Japan waits on the U.S. to conclude an investigation on GMO wheat found in Oregon. Japan purchased 300 MT of milling wheat and 500 MT of food-grade barley. Thailand purchased 55,000 MT of Black Sea origin feed wheat. Tunisia tendered to buy 75,000 MT of optional origin milling wheat.