First Thing Today Audio | June 17, 2021
Corn futures faced followthrough selling overnight and are down 18 to 20 cents, hitting or testing new lows for the month. Soybean futures are down 22 to 27 cents, with November leading losses. Winter wheat futures have tumbled 9 to 11 cents, with spring wheat 2 to 4 cents lower. After a limit-lower performance in July soybean oil yesterday, limits expand to $1.50 for soybeans, $45 for soymeal and 550 points for soybean oil. The U.S. dollar index is posting strong gains, jumping to its highest level since mid-April after the Fed moved up the timing for its first interest rate hike. Crude oil futures are near unchanged.
Hot temperatures are expected for the Southern and Central Plains and much of the Midwest today through Saturday, stressing livestock and crops. Heat advisories are in effect for northeast Nebraska, northern Kansas, the southern two-thirds of Iowa and northern Missouri, with highs in the upper 90s to low 100s expected.
Refinitiv trade flow data shows Brazil exported 13 MMT of soybeans during May, which would be a 16% retreat from April and a 2% dip from May 2020. Since February, the country has shipped 47.9 MMT of soybeans, up 1.6% from year-ago.
India has paused its proposal to lower import duties on edible oils amid a pullback in global prices for cooking oil from record levels according to Reuters.
At yesterday’s meeting, President Biden and Russian leader Vladimir Putin reportedly discussed averting a new Cold War with China increasingly asserting economic and military power. Biden said he and Putin concurred on efforts to prevent Iran from acquiring a nuclear weapon.
Prospects for a bipartisan infrastructure deal improved yesterday as 21 senators, including 11 Republicans, signed onto a bipartisan framework for a $579 billion package.
Senate Democrats are weighing plans to speed some components of a stalled immigration overhaul through the Senate later this year as part of a broad Democrat-only measure with much of Biden’s economic agenda.
Publicly traded companies would be required to disclose financial risks related to climate change under a bill passed by the House yesterday and sent to the Senate where it faces an uncertain future.
Senator Chuck Grassley (R-Iowa) tweeted: “GR8 NEWS Ag Cmte answering my calls 2hold a hearing on June 23 on unfairness in cattle market/industry +need for transparency This is opportunity to educate senators/public on the dire issues family farmers r facing while up against Big Cattle.”
Choice boxed beef values dropped $5.26 and Select dived $8.32 at midweek, but the price break did spur solid movement. Additional cash cattle trade occurred yesterday at prices ranging from $121 to $124, with Iowa and Nebraska leading gains.
A dive in live hog and pork prices and reports China’s sow herd has rebuilt to around 98.4% of its pre- African swine fever levels sparked concerns about a major slowdown in Chinese pork purchases. Cash hog bids soared $5.73. Daily trading limits expand to $4.50 after yesterday’s limit-down close for several contracts.
