Record Deficit Faces Next President

July 28, 2008 07:00 PM
 
Snapshot of news and events for today

 

Quick links

* Financial markets

* Ag futures

* USDA reports this week

* NWS forecast

* Major media

* Ag media

* Political humorists



Financial markets Major world indicators

Japanese trading...

  • The 225-issue Nikkei Stock Average closed 1.5 percent lower, or 194.33 points, to close at 13159.45 points

  • The dollar gained against the yen to ¥107.45.

Monday's U.S. Markets...

  • The Dow Jones Industrial Average finished the day off 239.61 points, down 2.1 percent, at 11,131.08 -- off 16 percent this year. The Nasdaq Composite Index fell 2 percent, of 46.31 points, at 2,264.22 -- off 15 percent this year.
  • The 2-year Treasury note gained 7/32 to yield 2.597 percent. The benchmark 10-year note was up 22/32, yielding 4.022 percent. The 30-year bond gained 1-1/32 to yield 4.623 percent.

  • The dollar traded at 107.47 yen, compared to 107.90 yen, while the euro was at $1.5743, up from $1.5699 late Friday.

Ag futures Yesterday's action and
overnight indicators

What happened yesterday...


  • Corn: Futures closed 3 1/4 to 5 1/4 cents higher, seeing a very narrow day of trade on the charts.
  • Soybeans: Futures closed 1 1/2 to 9 1/2 cents higher, with meal and soyoil seeing spillover support.

  • Wheat: Futures opened higher, but fell in late trade amid profit-taking.
  • Cotton: Futures finished weaker. Futures posted a low-range close, finishing slightly to moderately lower.
  • Lean Hogs: Lean hog futures saw a choppy day of trade, finishing mixed.
  • Live Cattle: Live and feeder cattle futures closed slightly to moderately lower, remaining under pressure through the day.

Scheduled USDA Reports & Summaries This Week

Agricultural Marketing Service = (A)
Census Bureau = (CB)
Economic Research Service = (E)

Farm Service Agency (FSA)

Foreign Ag Service = (F)

National Agricultural Statistics Service = (N)

World Agricultural Outlook Board = (W)

Monday

Tuesday

Wednesday

Thursday

Friday

July 28

Grain Inspections (A)
Crop Progress (N)

29

Poultry Slaughter (N)
Weather - Crop Summary (N)

30

Broiler Hatchery (N)
Peanut Stocks and Processing (N)
Fruit and Tree Nuts Outlook (E)

31

U.S. Export Sales (F)
Agricultural Prices (N)
Agricultural Prices - Ann. (N)
Egg Products (N)

Aug. 1

Dairy Products Prices (N)
Peanut Prices (N)


Overview Other reports affecting agriculture
Major media Links to top news reports
with potential U.S. ag impact

Wall Street Journal (subscription to site required for access)

  • Reid Offers Republicans Separate Votes on Energy Senate Majority Leader Harry Reid (D-Nev.) has offered Republicans the opportunity for four separate votes on their energy package -- whether to permit exploratory offshore drilling in environmentally protected areas, drilling looking for oil shale in the western U.S. and the construction of nuclear-energy plants, and then a vote on the entire Republican package. Republicans didn't embrace the offer totally but labeled it a first step.
  • House to Vote on FDA Regulation of Tobacco. The House appears poised to approve the bill that bring regulation of tobacco under FDA, but its future is murky in the Senate and there is opposition to the measure from the White House.
  • Beijing Considers New Curbs As Pollution Threatens Games  Even though China has spent a lot of money on cutting pollution ahead of the Olympic games, pollution readings have exceeded the government's own safe levels four out of the past eight days. That has prompted the country to mull whether additional steps are needed.
  • Budget-Gap Estimates Balloon To Some $500 Billion Economic Strain Threatens to Snarl Candidates' Plans When costs of the Iraq War are figured in, the $492 billion deficit for FY 2009 balloons past $500 billion. The bigger deficit forecast also came with lower projections for U.S. economic growth. Neither presidential hopeful offered any new ideas for reducing the deficit.
  • Fuel-Economy Push Hits Snags Gas-Mileage Rules Are Called Too Lax And Too Stringent. New gas mileage rules from the Bush administration are being criticized on both ends, as Democrats say if the rules were tighter it would save more fuel and remove the push to drill offshore. Some Democrats who backed the new mileage standards in April now claim it is "not enough."
  • China Objection Threatens Trade Deal Doha Talks Set Back As Beijing Protests Proposal on Tariffs. China says it has not signed off on a compromise plan in the Doha Round talks that was made late last week. Chinese officials pledged to continue to support and/or protect their sugar, cotton and rice sectors.
  • Obamanomics Is a Recipe for Recession Opinion item by Michael Boskin, professor of economics at Stanford University and senior fellow at the Hoover Institution, was chairman of the Council of Economic Advisers under President George H.W. Bush. The writer looks at the tax and trade policies signaled by Sen. Barack Obama (D-Ill.) and predicts major economic trouble for the U.S. is that pathway is followed.
  • Senate Declines to Address Package of Bills. The 'Tomnibus' bill isn't likely to go now that it fell short of votes needed in a procedural vote in the Senate.
  • Passing Along Rising Costs Lifts Kraft, Wrigley Meat Glut Chops Tyson's Earnings. The item looks at the earnings The item recaps the latest earnings data for some key food firms.
  • IMF Urges Review of Fannie, Freddie Business Model. The IMF has issued a warning about the potential for the housing situation to cause global economic woes. USDA Undersecretary Bruce Knight lived up to his word that the interim final rule on country-of-origin labeling (COOL) would be released by the end of July. Developing countries led by China and India are at loggerheads with food exporters like the US over the issue of safeguards against food import surges, and differences on several other fundamental parts of a deal are also unresolved. Ministers said they would try to find ways out of the impasse as talks entered their ninth day -- the longest ever WTO ministerial-level meeting.

New York Times (registration to site required)

  • Rush for Natural Gas Enriches Corner of the South Individuals and some local governments are suddenly finding themselves with new-found wealth as they are paid for mineral rights on property that sits atop a major natural gas field in the southern United States.
  • White House Predicts $482 Billion Deficit The $482 billion figure forecast for Fiscal 2009 would best the prior record of $413 billion in 2004. The projected 2009 deficit would be 3.3 percent of the economy. That is the largest share since 2004, but well below the percentages recorded in the 1980s and early 1990s.
  • Food Makers Report Profits as Eating in Gains Favor. Kraft Foods reported stronger earnings as a growing number of Americans are opting to avoid restaurant dining and eat at home.
  • China Emerges as Major Player in Global Trade Talks. China is seeking concessions from developed countries as the trade talks continue for a second week. Some like the U.S. fear the stance taken by China and others could jeopardize the talks.

Washington Post

Ag media Monitoring the countryside

Des Moines Register (Iowa)

Denver Post (Colorado)

Laughing with, not at From political humorists

Jay Leno: "As you all know, Barack Obama is over in the Middle East. Hey, did you see him playing basketball with our troops in Iraq? Did you see that one shot he made from 40 feet? … Let me tell you something. If shooting baskets is now a requirement to be president, a white guy may never have that job again.”

Jay Leno: "Barack Obama, very popular in the Middle East. I guess a lot of people over there saw the cover of ‘The New Yorker.'”

Jay Leno: "Well, this is Barack's third day in the Middle East, and President Bush says he has no timetable for bringing him back home.”

Jay Leno: "John McCain called a press conference today. Unfortunately, all the press were out of the country covering Obama.”

Jay Leno: "You know, you've got to feel kind of sorry for McCain. I mean, all day on TV, they show nothing but footage of Barack Obama touring the Middle East, being with the troops in Afghanistan, meeting with troops in Iraq. The only time I saw McCain on TV was when Willard Scott wished him a happy birthday on the ‘Today' show.”

Jay Leno: "A lot of people think to take some of the spotlight off of Barack Obama, that John McCain will announce his vice presidential choice this week. And most people think it's going to be Mitt Romney. … See, I don't know” about that, because "when Romney and McCain stand together, doesn't it look like one of those slick Countrywide lenders trying to trick your grandfather into a reverse mortgage?”

Jay Leno: "And yesterday, President Bush gave the US Olympic Team a rousing sendoff to the Olympics. Again, I don't think President Bush is that up on geography. Like, he told the athletes to get there a couple of days early to acclimate themselves to the fact that China is upside down.”

David Letterman: "Speaker of the House Nancy Pelosi is calling the Bush presidency ‘a total failure.' … I think he's done okay, if you don't count Iraq, the economy, the environment, Afghanistan, the mortgage crisis,” the "deficit, gas prices, Hurricane Katrina, illegal wire tapping, the national debt, tainted food, failure to catch bin Laden, CIA Leak. Other than that, I think it's been pretty good.”

David Letterman: "John McCain…said” recently that Iraq and Afghanistan share a common border, and "I thought, well no wonder we can't find Osama bin Laden. We've been searching an imaginary border.'”


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