Pro Farmer's First Thing Today: Chinese Soybean Imports, Russia Bans Biden Cabinet Members and More
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Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday, April 20. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Corn futures are 4 to 5 cents higher, with all but the front-month registering contract highs. Soybeans have soared 10 to 24 cents, with old-crop leading the charge to new contract highs. Winter and spring wheat futures are 3 to 5 cents higher, but futures have not yet taken out yesterday’s highs. The greenback faced pressure overnight, but it has since pared early losses. Crude oil futures are up slightly.
China imported 7.18 MMT of soybeans from the U.S. during March, a 320% surge from shipments the year prior, according to Chinese customs data released today. This came as rain and late crop development slowed the start of Brazil’s shipping season.
South American Crop Consultant Dr. Michael Cordonnier cut his Brazilian corn crop projection, and his bias is lower going forward based on dry weather. Besides crop lateness and the dry pattern, Cordonnier says farmers are also worried about an aggressive new corn pest. Cordonnier maintained his Brazilian soybean crop projection of 133 MMT, and his bias is neutral to slightly higher going forward. Rabobank yesterday trimmed its Brazilian corn crop projection and it hiked its bean crop forecast.
The Russian Ministry of Foreign Affairs on Friday announced that several members of President Joe Biden’s Cabinet were banned from entering Russia in retaliation for recent U.S. sanctions levied on the nation and the expulsion of 10 Russian diplomats in retaliation for what the White House says is the Kremlin's U.S. election interference, a massive cyber-attack and other hostile activity.
Moscow’s military presence at Ukraine’s borders is projected to “reach 56 battalion tactical groups with 110,000 troops,” testified Ukraine Defense Minister Andrii Taran before the European Parliament’s Security and Defense Subcommittee.
Chinese President Xi Jinping on Tuesday called for more equitable management of global affairs and, in an implicit rejection of U.S. dominance, said governments shouldn’t impose rules on others. Xi’s speech at an economic forum comes amid rising tension with China’s neighbors and Washington.
U.S. miles driven are back to pre-pandemic levels and international ethanol prices are at a six-year high. The U.S. ethanol inventory is at a 21-week low and the U.S. blending demand is at a 13-month high, CNBC reported.
The Biden administration will make an additional 22,000 seasonal guest-worker visas available this year ahead of the summer season, the Wall Street Journal reports. This is on top of the current 66,000 visas now available annually.
Boxed beef values edged slightly higher to start the week, with the restrained gains and limited movement likely signaling some resistance to lofty price levels.
The pork cutout value jumped to start the week and movement improved after a slow day Friday. Chinese trade data out over the weekend signaled the country is still importing large amounts of pork. Cash hog bids climbed a national average of 45 cents Monday.
