Good Morning farm country. Davis Michaelsen here with your morning update for Friday May 29. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Corn futures strengthened overnight, with futures currently up a penny. Soybean futures are trading high-range but down 1 to 3 cents in 2020 contracts, with far deferred months steady to a penny higher. Winter wheat futures opened under pressure, but the markets have since strengthened to trade 1 to 2 cents higher. Spring wheat futures are fractionally lower. The greenback has dropped to its lowest level since mid-March. Crude oil futures are also under pressure.
President Donald Trump will hold a press conference to address China’s actions to tighten its grip on Hong Kong… And he’s set to sign a measure that would punish Chinese officials for imprisoning more than one million Muslims in internment camps. China’s foreign ministry called U.S. actions so far “pure nonsense” and said Hong Kong is an internal matter.
Volatile numbers have the White House shying away from forecasts. A senior administration official said the coronavirus has resulted in “fluctuating” economic data, and that White House projections wouldn’t provide a “meaningful snapshot” of the economy.
Argentina’s Parana River is at its lowest level in half a century, forcing ships to sail partially loaded, adding time, expense, and headache for shippers bound by international contracts. These added costs are cutting into margins for Argentina’s crushing industry and are likely to continue doing so at least through September, according to officials cited by Reuters.
Germany is once again dealing with low water levels on its Rhine river. Recent dryness is preventing ships from sailing fully loaded and are adding surcharges to usual freight rates, according to Reuters.
The Adjusted World Price for cotton moved down to 47.48 cents per pound, effective today (May 29), down from 48.01 cents per pound. This ended a string of seven weeks in a row the AWP had increased.
Pakistan has been battling swarms of desert locusts for the past month, but the situation worsened over the past week. The country has dispatched aircraft and spraying machines to save crops, with the country’s minister of national food security saying today that the government will buy five more aircraft for spraying crops.
In 2019, U.S. annual consumption of renewable sources of energy topped coal consumption for the first time since before 1885, reports the U.S. Energy Information Administration.
Cash cattle trade has once again taken place in a wide range stretching from $112 to $120, with the bulk of action occurring at the upper end of that range. The wide discount nearby futures hold to that range and continued efforts to reopen the economy have lifted futures this week. After two days of gains, sellers returned to the lean hog futures market on Thursday, with cash market weakness encouraging the establishment of new short positions.
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