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Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday, April 27. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Corn futures have soared 11 to 31 cents (limits are expanded to 40 cents today), with the front-month leading gains and charging above $7.00. Soybeans are 13 to 26 cents higher, with old-crop leading to the upside. Winter wheat has soared 20 to 28 cents, while HRS wheat futures are 17 to 21 cents higher. The U.S. dollar index and crude oil futures are marginally higher.
Jim Wyckoff, a veteran market analyst, notes the following: “Copper futures are at a 10-year high, Chinese steel futures are at record highs, coffee futures prices hit a nearly four-year high this week, and lumber futures are at record highs.”
Last week was again dry for south-central Brazil, with some disappointing rain over the weekend in western Mato Grosso do Sul and a small area of Parana, says South American Crop Consultant Dr. Michael Cordonnier. Rain coverage for safrinha corn areas was spotty and accumulation was limited. He now estimates at least 50% of the crop is in various stages of moisture stress.
Some Asian feed manufacturers are reportedly shifting to wheat as corn prices soar. With the landed cost of corn now at a rare premium to wheat, feed producers in China, South Korea and Vietnam are reportedly buying more wheat from Australia and the Black Sea region for use in feed.
President Joe Biden intends to raise capital gains taxes for those earning more than $1 million a year, his top economic adviser confirmed Monday. Revenue would go toward funding major new social-spending measures that the president is set to unveil in a joint congressional address on Wednesday evening
USDA Secretary Tom Vilsack on Monday flatly denied there is any effort by President Joe Biden to reduce meat consumption to meet proposed 50% to 52% cuts in greenhouse gas emissions by 2030 vs. 2005 levels.
Cash cattle action last week averaged $121.36, down 67 cents from the week prior. Strong packer profit margins with prime grilling weather ahead has most expecting steady to higher cash cattle action this week, despite ample supplies of market-ready cattle.
Lean Hog futures posted moderate gains to start the week after the market stabilized last week amid an easing of fears about any dive in Chinese demand. Cash hog bids slipped 48 cents to start the week. May lean hogs hold a $2.74 premium to the CME lean hog index, while June lean hogs are trading basically in line with the index.
