Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday June 2. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Corn futures are trading midrange and steady to fractionally higher in early trade. Soybeans favored the upside overnight and are 4 to 5 cents higher. HRW wheat futures are down 3 to 4 cents amid harvest pressure, while SRW wheat is fractionally lower and spring wheat is choppy. The U.S. dollar index is again under pressure, with the greenback hitting its lowest level since mid-March. Crude oil futures are working higher.
State-owned Chinese firms bought at least three cargos of U.S. soybeans on Monday despite reports suggesting Beijing had ordered a freeze on American farm good purchases due to an escalation of tensions with the U.S. over Hong Kong. Chinese importers still have not covered a large share of October and November soybean needs.
When USDA's weekly condition ratings are plugged into the weighted Pro Farmer Crop Condition Index (CCI), with 500 representing perfect, the corn crop improved 4.6 points to 382.5 points. The corn CCI rating is still 0.9 points below the five-year average for this date. USDA’s initial soybean conditions of the spring start the crop with a CCI rating of 370.2, which is 3.1 points below the five-year average.
Crop consultant Dr. Michael Cordonnier maintained his 121 MMT soybean crop estimate for Brazil and said he does not expect that estimate to change much going forward. He also maintained his 96 MMT Brazilian corn crop estimate, but his bias is neutral to lower going forward. Three rain episodes over the last three weeks has “probably stabilized the safrinha corn crop in southern Brazil,” according to Cordonnier who also notes the crop has dodged two episodes of scattered frosts.
President Donald Trump called for a tougher government response to the violent unrest, and said he is ordering thousands of armed soldiers and law enforcement officers to the nation’s capital. The Associated Press reports at least nine people confirmed killed as a result of violence across the country since protests began eight days ago.
The U.S. economy could take the better part of a decade to fully recover from the pandemic and related shutdowns, a U.S. budget agency said on Monday. Output isn’t expected to catch up to a previously forecast level until the fourth quarter of 2029, the nonpartisan Congressional Budget Office (CBO) said.
Packer profit margins remain impressive at nearly $909 a head, according to HedgersEdge.com. Prices for feeder steers and heifers climbed $1 to $3 at an Oklahoma City Feeder cattle auction yesterday. Hogs were under pressure to start the week, in large part due to reports China will cancel more U.S. pork purchases or halt additional buys.
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