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Good Morning farm country. Davis Michaelsen here with your morning update for Thursday, April 1. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
After yesterday’s limit surge, corn futures gapped higher on the open and extended gains, but the market has since backed well off its contract highs to trade “just” 11 to 15 cents higher. Soybean futures also gapped higher and pushed to new contract highs earlier in the overnight session, but futures have since closed that gap and the market is up 7 to 25 cents with new-crop leading gains. Daily price limits for corn expand to 40 cents today; soybean limits expand to $1.05. HRW wheat futures are 3 cents lower, while SRW and HRS wheat futures are down a penny or two after an early rally. The U.S. dollar index is marginally lower, and crude oil futures are higher. Grain and livestock markets will observe normal trading hours today, but they will be closed for Good Friday. Government offices will be open Friday. There will be no Pro Farmer reports Friday.
Ships are moving through the Suez Canal at a rapid rate, the Wall Street Journal reports, but vessels that had been idling outside the canal are arriving almost as fast as the backlogged ships can be cleared. The ongoing backup highlights the fragile nature of the ocean-borne supply chains at choke points like the Suez.
The Caixin/Markit purchasing managers’ index (PMI) for China came in at 50.6 in March, down from 50.9 in February. While this was still the 11th straight month in expansion territory for the private reading on China’s manufacturing activity, it also marked the lowest reading in that timeframe.
French President Emmanuel Macron announced a new four-week national lockdown. Macron shut down schools and businesses as the country seeks to contain a third wave of Covid-19 cases.
Yesterday, President Joe Biden unveiled the first of two parts of his infrastructure reform/corporate tax hike proposal. House Speaker Nancy Pelosi (D-Calif.) reportedly told Democrats that she hopes the package will pass the House by the Fourth of July.
On average, U.S. farmers received 14.3 cents for farm commodity sales from each dollar spent on domestically produced food in 2019, up from a newly revised estimate of 14.2 cents in 2018. The slight gain in farm share came after seven consecutive years of decline.
Boxed beef prices extended their impressive rallies on Wednesday. The product market surge has padded already strong packer profit margins. On the cash market front, Kansas and Texas have seen some light action at $116 to $117, and trade picked up in Nebraska yesterday at $118.
Average hog weights in the Iowa/southern Minnesota/South Dakota market edged higher the week ending March 27, with weights now up 2.2 lbs. from year-ago. The market has signaled some retailer resistance to rising prices this week.
