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Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday, March 23. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Corn futures are fractionally higher in the front month and a penny or two lower in deferreds after a quiet and two-sided overnight session. Soybean futures are 3 to 6 cents higher amid followthrough buying. HRW wheat futures are a nickel lower, while SRW and HRS wheat futures are posting losses around 3 to 4 cents. Crude oil futures are under pressure and back below the 40-day moving average. The U.S. dollar index is testing last week’s highs.
South American Crop Consultant Dr. Michael Cordonnier maintained his Brazilian soybean and corn crop estimates and his bias is neutral going forward with a neutral to lower bias on corn.
Planting of Brazil’s safrinha corn crop reached 86.2% complete across the Center-South region, according to the consultancy Safras & Mercado. That’s still 10 percentage points behind the historical average for this point in the season.
Cordonnier also maintained his Argentine soybean and corn crop estimates and his bias is neutral going forward, with a lower lean on corn.
President Biden’s next proposal is a two-part $3-trillion package of sweeping policy priorities for infrastructure, clean energy, work force development and education spending as part of the president’s “Build Back Better” agenda.
The United States and its allies in Canada, Britain and the European Union announced sanctions on several Chinese officials alleged to have links to what U.S. officials say is a genocidal campaign against Uyghur Muslims. The action drew some immediate retaliatory sanctions from Beijing.
The governments of Germany, Poland and the Czech Republic have agreed to allow more hunting to combat African swine fever (ASF) in their wild boar population. A fence has also been built along the Polish border to prevent their spread.
Frozen beef stocks dipped 8.46 million lbs. during February, which fell well short of the average 27.2 million-lb. drawdown over the period. Stocks of 510.90 million lbs. representing a new record for the end of February. The disappointing numbers could lead to some additional profit-taking in the cattle complex.
Frozen pork stocks climbed nearly 34 million lbs. from Jan. 31 to Feb. 28, which was a bit more than the average 30.6 million-lb. rise for the period. But stocks of the meat are still sharply under year-ago. Cash hog bids jumped $2.55 to start the week.
