Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday May 26. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Corn futures are trading high range and around a penny higher to start the week. Soybeans are up 3 to 5 cents. Winter wheat futures are fractionally to 2 cents lower. HRS wheat futures are steady to fractionally lower. U.S. stock indexes are pointed toward solidly higher openings on optimism about economies reopening and the potential development of a coronavirus vaccine. The U.S. dollar index is under pressure and crude oil futures are higher.
Neither chamber of Congress is in Washington, with the Senate slated to return early June. The House can now vote by proxy remotely and this week will consider a Senate-passed intelligence surveillance reauthorization and bipartisan legislation to modify the Paycheck Protection Program (PPP). Work continues behind the scenes on a Phase 4 Covid-19 relief package.
Brazil has been exporting soybeans at a record-setting pace for months, with the country shipping 43 MMT of soybeans from January through April, with roughly 80% of that tally headed for China. Looking ahead, South American Crop Consultant Dr. Michael Cordonnier says he expects Brazil to export around 10 MMT to China in both June and July, “but after that, the volumes will decline through the end of the year,” he said.
“The two concerns I have for the U.S. crops are the delayed planting in North Dakota with the potential for some prevent plant corn acres, and the saturated areas of the eastern Corn Belt that might require some replanting,” says Cordonnier, who adds that the prevent plant date for corn in most of North Dakota was yesterday.
President Donald Trump’s national security adviser, Robert O’Brien, says he thinks leaders of the world’s major economies “would love to get out of their offices and meet in person and plan the post-Covid world” at a G7 summit Trump is considering hosting in the U.S. in June.
The U.S. should give up its “wishful thinking” of changing China, Foreign Minister Wang Yi said, warning that some in America were pushing relations to a “new Cold War.” On Sunday during his annual news briefing on the sidelines of National People’s Congress meetings in Beijing, Wang said “China has no intention to change the U.S., nor to replace the U.S.”
North Korean leader Kim Jong UN made his first televised public appearance in three weeks when he chaired a meeting on the country’s nuclear capabilities on Sunday. The meeting discussed “increasing the nuclear war deterrence of the country and putting the strategic armed forces on a high alert operation,” adopting “crucial measures for considerably increasing the firepower strike ability of the artillery pieces,” according to state news agency KCNA.
Friday’s Cattle on Feed Report reflected a plunge in marketings and placements during April, but that was expected. The market continues to watch improving cattle processing after Covid-19-related closures and pullbacks rattled farmers and consumers. Retailers were featuring pork heading into the unofficial kickoff to summer. The morning and afternoon product market will be watched for a gauge of holiday weekend clearance.
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