Pro Farmer's First Thing Today: Acreage and Grain Stocks Report & More

10:59AM Jun 30, 2020
Here are audio highlights from around the ag industry, courtesy of Pro Farmer.
( Pro Farmer )

Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday June 30. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures saw a mix of light profit-taking and followthrough buying after yesterday’s rally, with the latter currently helping the market to trade around a penny higher. Soybeans favored the upside overnight and the market is steady to 3 cents higher at present. Winter wheat futures are down 2 to 3 cents, with spring wheat futures steady to up 3 cents. The U.S. dollar index is slightly higher, with crude oil futures under pressure.

USDA’s Acreage and Quarterly Grain Stocks Reports are out today. These reports have a history of producing major price moves that often set the price tone through summer. USDA is expected to trim corn plantings with soybean acres likely to rise March intentions. But the market has a tendency to underestimate corn acres in this report. June 1 stocks are expected to be 4.95 billion bu. for corn, 1.39 billion bu. for soybeans and 980 million bu. for wheat. 

China today said manufacturing activity expanded in June with the official Purchasing Manager’s Index coming in at 50.9. Economists polled by Reuters had expected the official manufacturing PMI number to come in at 50.4. PMI readings above 50 indicate expansion.

Pending-home sales posted their biggest monthly increase on record in May.  The National Association of Realtors said pending home sales jumped by a record 44.3% in May. "The housing market is likely benefiting from low mortgage rates, stronger demand for larger spaces as more and more people work from home and a desire to move away from crowded cities to avoid exposure to the coronavirus," said High Frequency Economics Economist Rubeela Farooqi.

Federal Reserve Chairman Jerome Powell will say the U.S. will need to “keep the virus in check” as the world’s largest economy begins to rebound from the shock of the coronavirus pandemic. In prepared testimony released ahead of a hearing before the House financial services committee today, Powell offered a more upbeat assessment of the current state of the economy than he has in the past.

The Trump administration on Monday made it harder to export sensitive American technology to Hong Kong, suspending regulations allowing special treatment for the territory over dual-use technologies like carbon fiber used to make both missile components and golf clubs.

China has temporarily banned the import of meat from three plants in Brazil amid concerns about Covid-19, Brazil’s ag ministry said yesterday. The ministry also said a fourth establishment had already “voluntarily” suspended exports to China.

Cash cattle traded at an average price of $96.21 last week, down roughly $5 from the week prior and nearly in-line with futures. Some gains in the product market last week gave the market hope beef prices may be working on a low. The number of hogs backlogged is estimated to top 1 million (possibly 2 million) signaling it will take several more weeks or months to work through the backlog, with USDA’s Quarterly Hogs & Pigs Report signaling slaughter could run 12% to 13% above year-ago levels through July.

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