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Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday, May 25. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Corn futures are down 1 to 3 cents in most contracts after seeing two-sided action overnight. Old-crop soybeans are up 5 to 8 cents and narrowly mixed in new-crop. Winter wheat futures have rebounded 1 to 2 cents on an unexpected slide in crop condition ratings. Spring wheat futures are up 1 to 5 on a much lower initial spring wheat rating than analysts expected on average. The U.S. dollar index is under pressure, as are crude oil futures.
Following are highlights from USDA’s crop progress and condition update for the week ending May 23.
· Corn: 90% planted, 64% emerged
· Soybeans: 75% planted, 41% emerged
· Spring wheat: 94% planted, 66% emerged, 45% “good” to “excellent”
· Winter wheat: 67% headed, 47% rated G/E
· Cotton: 49% planted
Crop Consultant Dr. Michael Cordonnier expects U.S. producers to plant between 93 million and 94 million acres to corn this season. He explains, “Since the survey for the March [Planting Intentions] Report was conducted, there has been more interest in corn than in soybeans due to the price ratio,” adding that quick planting progress generally favors more corn.
Cordonnier lowered his Brazilian corn crop estimate by 2 MMT, dropping his crop estimate to 95 MMT; his bias is neutral to lower going forward. He maintained his Brazilian soybean crop estimate of 134 MMT, and his bias is neutral to slightly higher going forward. He maintained his Brazilian soybean crop estimate of 134 MMT, and his bias is neutral to slightly higher going forward.
A Mexican federal judge shot down a request by the National Farm Council (CNA) to freeze a plan by the Mexican government to ban genetically modified (GMO) corn and the herbicide glyphosate by 2024, the national science council said today.
Federal Reserve officials pushed back against the threat that a spike in price pressures will prove lasting as the U.S. economy reopens.
Senate Republicans are planning to make a new overture to Biden on infrastructure spending, and said they’ll continue trying this week to strike a bipartisan deal after rejecting the White House’s latest counteroffer of $1.7 trillion as too costly.
President Joe Biden yesterday announced a doubling of federal spending on preparations for severe weather events, the president’s latest move to put climate change at the center of his domestic agenda. The administration will provide $1 billion this year to state, local and tribal governments to prevent damage from floods, hurricanes, wildfires and other natural disasters, the White House said in a statement.
Cash cattle traded at an average price of $119.72 last week, basically unchanged from the week prior and a few bucks above June futures. Early expectations are for more of the same this week.
USDA’s monthly Cold Storage update for the end of April reflected a lighter build in frozen pork stocks than is typically seen from March. Cash hog bids climbed a national average of $2.51 on Monday.
