First Thing Today (VIP) -- October 8, 2013

October 8, 2013 01:20 AM


CORN MILDLY WEAKER, BEANS AND WHEAT FIRMER OVERNIGHT... As of 6:30 a.m. CT, corn futures are fractionally to 1 cent lower, soybeans are 3 to 5 cents higher and wheat futures are mostly 2 to 5 cents higher. The U.S. dollar index is anchored near unchanged this morning.

SENATE TO TAKE UP CLEAN DEBT LIMIT BILL THIS WEEK, BUT 60 VOTES NEEDED... Senate Majority Leader Harry Reid (D-Nev.) said Monday he will attempt to take up clean debt limit legislation this week, but the measure faces a 60-vote hurdle to clear a procedural filibuster. If all 54 members of the Democratic caucus vote in favor of the measure, Reid would need six GOP senators to open and close debate. On Monday, GOP Sen. Mark Kirk of Illinois said he would support both procedural motions and a final bill for a clean debt limit hike. Sen. Lisa Murkowski of Alaska said she would "want to proceed on anything." Sen. Lindsey Graham of South Carolina said he would vote for a short-term clean debt limit increase, even though he views Reid’s attempts to move a bill this week as a "gimmick." Meanwhile, several Wall Street firms on Monday moved up by a day their projection of when the Treasury Department will run out of cash, to Oct. 31, while warning that the government could reach the end of cash reserves as early as Oct. 24. The Obama administration would be open to a bill that boosts the debt ceiling for a few weeks, a top White House official said on Monday. National Economic Council Director Gene Sperling said that how much to raise the debt ceiling is up to Congress and that the administration would prefer a longer-term solution.

FRANCE CUTS WHEAT, CORN CROP ESTIMATES... France's farm ministry cut its wheat crop estimate by 117,000 MT from last month to 36.9 MMT. Wheat production is still expected to be 3.8% higher than last year. The corn crop estimate was trimmed to 15.5 MMT from 15.6 MMT last month, but is still up 2.9% from year-ago.

CME ISSUES ALTERNATIVE SETTLE PLAN FOR OCT. LEAN HOG FUTURES... CME Group announced yesterday it will alter its settlement procedure for its October lean hog futures contract, which stops trading Oct. 14, if USDA data used to formulate the CME lean hog index is unavailable by Oct. 15 due to the government shutdown. Under that scenario, CME Group would calculate final settlements based on the volume-weighted average price of the October lean hogs futures contract for the two-day period of Oct. 11 and 14. The price would include both electronic and pit trade.

PEDV DATA COLLECTION SHIFTS TO UNIVERSITIES WITH SHUTDOWN... With much of USDA’s Animal and Plant Health Inspection Service (APHIS) furloughed due to the partial government shutdown, the University of Minnesota’s diagnostic lab staff contacted four other universities that have been gathering data on the porcine epidemic diarrhea virus (PEDV). As of the week of Sept. 22, the university said there were 684 separate cases reported in 17 states. Iowa has reported the most cases at 191, followed by Oklahoma at 164, Indiana at 85 and 76 in North Carolina.

SHOWLISTS DOWN IN TEXAS AND KANSAS, UP IN NEBRASKA... Cattle showlist numbers are estimated to be down a combined 10,000 head in Texas and Kansas, while available supplies in Nebraska are thought to be up 5,000 head from week-ago. Due to smaller numbers, feedlots in the Southern Plains may have a slight upper hand in negotiations, but packers in Nebraska will likely be unwilling to actively bid for cattle, especially with cutting margins thought to be solidly in the red.

CASH HOGS CALLED STEADY/WEAKER... Most pork plants are thought to be well supplied for the week. Therefore, cash hog bids are expected to remain steady to weaker across the Midwest, though strong cutting margins should limit pressure on the cash market.

OVERNIGHT DEMAND NEWS... Taiwan purchased 60,000 MT of Brazilian soybeans. Japan is seeking 101,892 MT of wheat in its weekly tender.


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