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Good Morning farm country. Davis Michaelsen here with your morning update for Monday, June 7. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:
Grain and soybean futures gapped higher overnight on U.S. weather concerns, especially across western and northern production areas. As of 6:30 a.m. CT, corn futures are trading 16 to 23 cents higher and soybeans are 25 to 33 cents higher, with new-crop contracts leading gains in both markets. Wheat futures are 11 to 16 cents higher, with HRS contracts pacing gains. The U.S. dollar index is holding near unchanged this morning.
The U.S. Northern Plains and areas of the Midwest were excessively hot during the weekend. Some needed rain will fall on the Northern Plains and upper Midwest this week as the high-pressure ridge shifts, according to World Weather Inc.
Talks will continue on an infrastructure package after President Joe Biden rejected Sen. Shelley Moore Capito’s (R-W.Va.) counterproposal to add about $50 billion in spending to the GOP’s infrastructure package. The two will meet again today.
Customs officials who process grain exports from Argentina plan to hold a seven-hour strike on Tuesday amid a lack of progress on getting union workers priority access to Covid vaccinations.
Treasury Secretary Janet Yellen said Biden should push forward with his $4 trillion spending plans even if they trigger inflation that persists into next year and higher interest rates.
The U.S. other G7 nations agreed to support a minimum global corporate tax rate of at least 15%. The deal faces several hurdles regarding implementation, and next month, the Group of 7 countries must sell the concept to finance ministers from the broader Group of 20 nations that are meeting in Italy.
Chinese imports surged 51.1% versus the previous year in May to $218.4 billion, the fastest growth since January 2011. Its exports rose 27.9% last month to $263.9 billion, though that was down from 32.3% growth in April.
China imported 790,000 MT of meat during May, down 14.4% from April and 3.3% less than May 2020.
Given the extended runup in wholesale beef prices, traders will be watching for signs the rally has run out of steam. But with strong demand from retailers, restaurants and the overseas markets, it’s going to take a lot more than a day or two of price pressure to convince traders a top is in place.
The national direct cash hog price firmed 95 cents last Friday, while the pork cutout was $1.77 higher. Until cash fundamentals signal the rally has exhausted, the downside in futures will be limited.
