PRICE PRESSURE OVERNIGHT... Corn and soybean traders are brushing aside a drop in crop condition ratings and a hot, dry forecast. As of 6:30 a.m. CT, corn futures are trading 4 to 7 cents lower, soybeans are 10 to 16 cents lower and wheat futures are 1 to 3 cents lower. The U.S. dollar index is weaker this morning.
CORN, SOYBEAN CCI RATINGS DROP SHARPLY... 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 dropped 9 points. Corn now stands at 346, while soybeans have a 342 rating. For both corn and soybeans, CCI ratings in all of the key Corn Belt states declined, with Iowa leading the ratings drop.
SENATE VOTE ON SYRIA RESOLUTION LIKELY TO DELAY ENERGY EFFICIENCY BILL... The first of several lingering legislative initiatives that will be delayed as a result of the coming Syria debate and vote in Congress has surfaced. Senate debate on a resolution to use military force against Syria is likely to delay consideration of an energy efficiency bill (S 1392) that had been scheduled to be among the first pieces of legislation addressed by Congress following the summer recess, a Senate leadership aide says. In the House, debate and vote on a separate food stamp funding bill, and the announcement of House farm bill conferees, will also likely be delayed.
G20 LEADERS TO CALL FOR GREATER TRANSPARENCY IN REGIONAL FREE TRADE TALKS... Leaders from the Group of 20 major economies will issue a call for greater transparency in regional free trade agreements (RTAs) at their upcoming summit in St. Petersburg, according to a copy of a draft leaders’ commitment. They will also urge WTO members to advance their discussions on the systemic implications of the increasing number of RTAs on the multilateral trading system, including the impacts of RTAs on growth, job creation, development and trade. "RTAs should remain complementary to, not a substitute for, the multilateral trading system," according to a draft document.
CASH CATTLE UNCERTAINTY... Coming off disappointing cash cattle trade at steady prices in the Plains last week, there's some uncertainty with this week's cash cattle trade. While tightening feedlot supplies should have cash prices pointed solidly higher, packers have been reluctant to consistently bid for cash cattle. With lengthy cash negotiations likely, active cash cattle trade isn't expected until late in the week.
SOLID START FOR PORK PRODUCT MARKET... The pork cutout value was 47 cents higher Tuesday and packers moved a solid 327.1 loads of product on the day. That should be enough to keep cash hog bids steady at most Midwest locations as packers work to fill out slaughter runs for the week amid highly profitable margins.
OVERNIGHT DEMAND NEWS... South Korea purchased 22,500 MT of U.S. milling wheat. Egypt tendered to buy optional origin wheat with results coming later this morning. Bangladesh tendered to buy 50,000 MT of optional origin wheat.