Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday, September 15. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Soybean futures are back testing yesterday’s highs, with the market strengthening overnight and futures currently up 5 to 7 cents. Corn futures are a penny lower after facing light pressure overnight. Winter wheat futures also favored the downside overnight, with most contracts currently trading 2 to 3 cents lower. Spring wheat futures are fractionally to 2 cents higher. The U.S. dollar index is under pressure, while crude oil futures are notching moderate gains.
Following are highlights of USDA’s Crop Progress & Condition Report update for the week ending Sept. 13, 2020.
· Corn: 89% dented, 41% mature, 5% harvested, 60% “good” to “excellent” (G/E)
· Soybeans: 37% dropping leaves, 63% G/E
· Cotton: 47% opening bolls, 6% harvested, 45% G/E
· Spring wheat: 92% harvested
· Winter wheat: 10% planted
Hurricane Sally is expected to make landfall near the Alabama/Mississippi border today, with the storm’s slow movement posing a “serious threat of prolonged excessive rainfall and more serious and possible record setting flood conditions. Damage to property will be far worse from the storm’s flooding rainfall and storm surge than from the wind associated with the storm center,” reports World Weather Inc., who adds between 10 and 20 inches of rain could fall.
Global ethanol production will likely slide 20% for the year, according to Brian D. Healy, director of global ethanol market development at the U.S. Grains Council. But Healy did add that ethanol production has nearly recovered from the worst of the Covid-19 pandemic, with production currently lagging year-ago levels by 10%.
The Trump administration has banned cotton apparel, computer parts and other imports from companies and suppliers that allegedly relied on forced and imprisoned laborers in China’s Xinjiang region. The U.S. Customs and Border Protection (CBP) Monday issued five Withhold Release Orders on various products from China linked to state-sponsored forced labor in the Xinjiang Uyghur Autonomous Region.
China’s pig herd was up 31.3% in August compared with year-ago, while its sow herd jumped 37%, the country’s ag ministry said today. This confirms reports the country’s rebuilding efforts in the wake of African swine fever is happening more quickly than many expected.
Cattle futures enjoyed some higher trade to start the week, an encouraging sign that the market’s uptrend may be renewed. Higher cash cattle trade would add to friendly attitudes. After climbing to the highest level in more than seven months, December hog futures reversed lower yesterday, marking a big outside day down on the daily chart. But the market still hasn’t filled Friday’s gap and corrective trade isn’t surprising; some sideways action would actually be an encouraging sign.
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