Corn futures are down 3 cents to start the week, with soybean futures 8 to 10 cents lower. Winter wheat futures are 8 to 11 cents lower, while spring wheat is down 7 to 10 cents. The U.S. dollar index and crude oil futures are slightly lower. Unease is growing among traders regarding the Covid-19 virus, with Dr. Anthony Fauci saying the situation is “moving in the wrong direction.”
Midwest corn and soybean producing areas are likely to be quite warm with limited rainfall this week, resulting in net drying across much of the region. The best rains are expected in the Great Lakes region, reports World Weather Inc. It details temperatures are expected to be in the 90s to 100s for the northern and central Plains early this week, and in the Central Plains and western Corn Belt midweek.
Water levels along the Parana River are so low that ships moving along this key shipping hub are having to reduce cargoes by 25%. River levels are at a 77-year low due to drought, and the region is expected to remain dry for months.
Excessive rains fell in central China last week. World Weather Inc. estimated the area impacted by the worst conditions encompassed around 91,000 square miles—near the equivalent of Illinois and Indiana combined.
The big-ticket Senate issue this week is the $1.2-trillion physical infrastructure measure. Text is still awaited so it’s murky as to what day this week votes will be held. But unless there is another snag in the pay-fors, there will be at least 11 Republican votes to go along with Democratic approval to get the matter pushed to the House.
Economists surveyed by the Wall Street Journal estimate that figures to be released on Thursday will show that GDP rose at an 8.5% seasonally adjusted annual rate in the second quarter. This would leave it above the $19.2 trillion level reached in late 2019, the last full quarter before Covid-19 began hammering the economy.
USDA reports there were 11.29 million head of cattle in large feedlots as of July 1, which was just under expectations. But Placements came in 3 full percentage points lower than expected, with Marketings a bit higher than expected. The data was mildly supportive relative to expectations and confirmed ongoing herd contraction.
Market technicals improved for the lean hog market last week, with traders working to narrow nearby contract’s discount to the CME lean hog index. The pork cutout value edged 3 cents higher and movement slowed to 267.03 loads. Cash hog bids fell 72 cents Friday, with national average bids down roughly $3 for the week.
