Get more daily market reports from Pro Farmer, start a free trial here.
Good Morning farm country. Davis Michaelsen here with your morning update for Friday, May 21. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Corn futures are down 4 to 5 cents, extending the market’s trend of back-and-forth price action this week. Soybeans have tumbled 9 to 14 cents, with old-crop leading to the downside. Soybeans have retreated since hitting eight-year highs on May 12. Winter wheat futures are down 3 to 4 cents, while spring wheat is 2 cents lower. The U.S. dollar index is just below unchanged, with crude oil futures posting moderate gains after an early drop to multiweek lows.
There’s a 60% chance of an above-normal 2021 Atlantic hurricane season, a 30% chance of a near-normal season and a 10% chance of a below-normal season, according to the National Oceanic and Atmospheric Administration (NOAA). It expects a range of 13 to 20 named storms in 2021.
A cease-fire between Israel and Hamas appears to be holding following 11 days of Israeli airstrikes and Hamas rocket launches in the most intense fighting between the two sides since 2014. Hailing the Egyptian-brokered cease-fire on Thursday, President Joe Biden said his administration “will continue our quiet, relentless diplomacy.”
Iranian President Hassan Rouhani said that the U.S. has agreed to lift sanctions on its oil, shipping, and banking sectors as he told a cabinet meeting that the remaining points being discussed at indirect talks in Vienna were “minor issues.”
The average rent for an acre of Iowa cropland negotiated for 2021 is $232 an acre, according to the annual survey conducted by Alejandro Plastina, extension economist at Iowa State University. That’s a $10, or 4.5%, gain compared to 2020. It’s also the highest average rent for Iowa since 2014.
Canadian Pacific Railway is asking the Kansas City Southern board of directors to reject a recent acquisition proposal by Canadian National Railway, noting Department of Justice concerns.
The U.S. Treasury wants crypto transfers above $10,000 to be reported to the IRS. The move comes after the Colonial gas pipeline was briefly shutdown due to a ransomware threat. The news is part of a broader Biden plan to raise $700 billion in revenue over the coming decade by stepping up IRS scrutiny of Americans.
Fed Chair Jerome Powell said the Fed will issue a discussion paper this summer on the possibility of a U.S. central bank digital currency (CBDC). The key focus is on how a CBDC could improve the current American domestic payments system, while the Boston Fed is working on more technical projects, focused on tools and infrastructure.
Yesterday, USDA initially reported 56,900 MT in beef export sales the week ending May 13, thanks largely to a 33,700 MT sale and export to the Netherlands. But the department later issued a correction indicating the sales and exports to the Netherlands only should have totaled 34 MT. That drops the weekly sales tally to a far less impressive 23,200 MT.
Weekly sales and shipments of pork failed to impress yesterday, but futures were still able to post solid gains. Slaughter tallies continue to retreat alongside weights as supplies tighten seasonally. Meanwhile, the pork cutout value rose $1.21 on Thursday.
