May 16 Monday Morning Wake Up Call

Published on: 08:33AM May 16, 2011

Chip Flory

Every Monday morning, Pro Farmer editors record the "Monday Morning Wake Up Call." It's a recorded message available by clicking here.

But... if you'd rather read the report instead of listening, each Monday morning I'll update the copy from the call here to help set your agenda of key issues that will be impacting the grain and livestock markets in the week ahead.

Monday Morning Wake Up Call

Good morning ... this is your May 16th edition of the Pro Farmer Monday Morning Wake Up Call.

Grain futures posted some moderate gains in the overnight session. Much of the credit for overnight gains is given to lower trade in the U.S. dollar. Traders will pay very close attention to the dollar’s value this week after South Korea – and possibly China – showed up to buy U.S. corn last week. Last week’s Supply  & Demand Report contributed to a big-time selloff in corn futures, but those lower prices seem to be uncovering some pent-up demand for feed grains in the Asian markets.

The biggest grain-market news from Washington this week will come this afternoon in the Weekly Crop Progress Report. Traders are looking for corn planting to be very close to the five-year average pace after planting conditions improved in Illinois last week. Indiana, Ohio and North Dakota will likely remain behind the five-year average, but traders generally expect most states to be on pace to wrap up planting very soon. Corn Belt rain chances this week are scattered and most of the week is expected to be dry – but very cool. Northeast Iowa has a chance of record lows tonight, but damage to any emerged corn should be minimal.

Outside of the farm world, the U.S. is expected to hit its debt limit of $14.294 trillion today. Instead of not borrowing more money, the U.S. Treasury Department is expected to announce some end-around maneuvers to meet financial obligations. That will keep the U.S. out of default until early August – or until lawmakers agree on a new debt limit.

On the Mississippi River, the Morganza Spillway has been opened to relieve flood risks further downstream in Baton Rouge and New Orleans. While it’s not much consolation, USDA Secretary Tom Vilsack said if growers in the flood plain that hasn’t been opened since 1973 bought crop insurance, those crops will be eligible for crop-loss payments.

That’s your Pro Farmer Monday Morning Wake Up Call.