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Pro Farmer's First Thing Today: Hurricane Season Predictions, Crypto Transfer Regulations and More

Thu, 24 Jun 2021 19:07:56 GMT

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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.

Pro Farmer's First Thing Today: House Committee Work Week, Surface Transportation Bill and More

Thu, 24 Jun 2021 19:06:01 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Monday, May 24. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures gapped lower on the open and are trading 10 to 14 cents lower on a good start to the U.S. growing season and welcome rains for Brazil’s safrinha corn crop. Soybean futures are posting losses of 7 to 14 cents, extending the market’s week-plus downtrend. SRW wheat is down 16 to 17 cents, HRW wheat is 14 cents lower and spring wheat is down 8 to 13 cents. The U.S. dollar index is marginally lower, while crude oil futures are moderately higher.

Rains were widespread across safrinha corn producing areas of Brazil over the weekend, providing welcome relief to dry conditions. The moisture comes too late for much of the crop, but some later planted fields will benefit.

Rain and snow fell in eastern Canada’s prairies on Friday, improving soil moisture for central Alberta, southern and eastern Saskatchewan and Manitoba, according to World Weather. It reports dry conditions linger from east-central Alberta through west-central and northwestern Saskatchewan, but rain is expected for those areas early this week.

The Senate is in session this week and for the House it is “House Committee Work Week” with no House floor votes on tap until June 14. Negotiations continue on a bipartisan infrastructure package, with President Joe Biden scaling back his original $2.25 trillion proposal to $1.7 trillion. Republicans still have not officially indicated their latest offer. But significant hurdles remain.

Top Democrats and Republicans on the Senate Environment and Public Works Committee announced Saturday they’d reached agreement on the surface transportation bill, which would provide $303.5 billion from the Highway Trust Fund over five years for highways, roads and bridges. That is more than 34% larger than the last reauthorization in 2015.

China is tightening its grip on the global commodities supply chains behind electric-vehicle production. The Wall Street Journal reports that Beijing has brought dozens of manganese processors together under a state-backed “manganese innovation alliance” that aims to coordinate planning and production. Industry experts say the plan is akin to a production cartel.

Enbridge Energy’s Line 5 pipeline transports more than half a million barrels a day of oil and natural gas liquids through Canada and the Great Lakes region. Late last year Michigan Governor Gretchen Whitmer moved to revoke and terminate an easement that lets the pipeline operate for 4.5 miles across the Straits of Mackinac. She’s seeking a state court injunction to force Enbridge to shut down Line 5 and “permanently decommission” the pipeline.

Choice and select boxed beef values climbed on Friday, but movement slowed. Last week’s kill climbed a welcome 4.5%, with the aggressive product market rally signaling the need for more production.

The pork cutout value shot another $1.64 higher on Friday, with all cuts except bellies climbing. Pork production edged 0.4% lower last week, while slaughter was little changed week-over-week. Today, USDA’s monthly Cold Storage Report will provide a read on demand.

Pro Farmer's First Thing Today: Crop Progress Report, More Money for Weather Disaster Prep and More

Thu, 24 Jun 2021 19:05:57 GMT

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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.

Pro Farmer's First Thing Today: Crop Progress Report, Fuel Shortage and More

Wed, 26 May 2021 20:19:45 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday, May 11. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures are trading high-range and split, with old-crop 1 to 5 cents higher and new-crop down roughly a penny. Soybean futures have reversed early losses to trade steady to 8 cents higher, with nearbys leading. SRW and HRS wheat futures are mostly 6 to 7 cents higher, while HRW wheat is up 2 to 4 cents. The U.S. dollar index down slightly, while crude oil futures are posting modest losses.

Following are highlights from USDA’s crop progress and condition update for the week ending May 9.

Corn: 67% planted, 20% emerged
Soybeans: 42% planted, 10% emerged
Spring wheat: 70% planted, 29% emerged
Winter wheat: 48% rated “good” to “excellent,” 38% headed
Cotton: 25% planted

Brazil will likely produce just a 97 MMT corn crop in 2020-21m forecasts South American Crop Consultant Dr. Michael Cordonnier. That’s a 3-MMT dive from his projection last week. His bias is neutral to lower going forward. Cordonnier raised his Brazilian soybean crop estimate by 1 MMT to 134 MMT, citing good yields in Rio Grande do Sul.

Gas stations along the U.S. East Coast are starting to run out of fuel as North America’s biggest petroleum pipeline fights to recover from a cyberattack. The White House said it was aware of shortages in the Southeast of the country and was trying to alleviate the problem.

Senator Joe Manchin (D-W.Va.) said yesterday he had a “good meeting” at the White House, as lawmakers continue to negotiate Biden’s economic proposals and infrastructure priorities.

The Federal Reserve Bank of New York’s Survey of Consumer Expectations for April found that Americans thought prices would rise 3.4% over the next year, the highest level since September 2013.

National Cattlemen’s Beef Association CEO Colin Woodall met with U.S. Trade Representative Katherine Tai on May 7 to “discuss ways to resolve issues surrounding country of origin labeling and agriculture’s contributions to meeting the administration’s sustainability and environmental goals.”

Choice boxed beef prices surged $3.23 and Select was up $3.49 on Monday, though packers moved only 71 loads of product on the day. Given strength in the wholesale beef market, strong packer margins and the rebound in futures, there is hope of higher cash cattle prices this week.

The national direct cash hog price was $1.48 lower on Monday, while the pork cutout value slipped 31 cents. Weakness in the cash and product markets could encourage traders to take some profits out of the long side of hog futures.

Pro Farmer's First Thing Today: WASDE Report Day, Colonial Pipeline Update and More

Wed, 26 May 2021 20:19:45 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Wednesday, May 12. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures are fractionally to 7 cents higher with old-crop leading gains. Soybeans have roared to yet another set of contract highs, with futures up 9 to 25 cents, with old-crop leading gains. Wheat futures are choppy, with winter wheat favoring the downside and spring wheat the upside. The greenback and crude oil futures are both posting gains.

USDA’s first official balance sheet update for the 2021-22 marketing year will be issued today at 11:00 a.m. CT. Tight carryover supplies of corn and soybeans will heighten attention on USDA’s stocks projection for both marketing years.

Union workers at Brazil’s Port of Santos opted to delay a possible strike until next month. Initially, the work stoppage in response to uncertainty regarding when they would receive the Covid-19 vaccine had been planned for this week.

China’s consumer price index edged 0.9% higher year-over-year during April, which fell just short of expectations for a 1.0% increase, its National Bureau of Statistics reported. An 11% drop in pork prices from March to April helped ease price pressure.

Colonial Pipeline said it will know by day’s end whether it’s safe to restart gasoline and diesel flows. These have been on hold since criminal hackers targeted the company last week. The continued outage of the pipeline is causing major disruption as panic-buying has dried up gas stations across the U.S. East and South.

More Republican-led states are rejecting the $300 enhanced federal unemployment payments saying they provide an incentive for some people to avoid work. On Tuesday, Iowa and Tennessee joined the growing list of states that are moving toward the elimination of the extra benefits ahead of the program’s scheduled expiration in September.

Today, the United Nations is holding a virtual event planned by Britain, Germany, and the United States, on how to support the human rights of Uyghurs and other Turkic Muslims in Xinjiang, China.

Kristen Hillman, Canada’s ambassador to the U.S., said the country would strongly oppose any new proposals from the U.S. to resurrect mandatory country-of-origin labeling (COOL) for beef and pork. “We went through this in 2013, 2014 and 2015 and we are very firmly of the view that mandatory country of origin labeling is inappropriate.”

Cash cattle traded at an average price of $118.36 last week, down 53 cents from the week prior. There is some optimism about higher cash prices this week, though we’re also hearing reports that packers are struggling to secure enough workers. Boxed beef values continue to soar, though movement has slowed.

Lean hog futures faced pressure Tuesday, with traders booking some profits after the market’s historic rally. Cash hog bids shot $5.18 higher for the national average on Tuesday and the pork cutout value edged 63 cents lower.

Pro Farmer's First Thing Today: Copper Futures High, Proposed Capital Gains Tax Increases and More

Wed, 26 May 2021 20:19:45 GMT

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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.

Pro Farmer's First Thing Today: Argentinian River Dredging, President Biden's Address to Congress and More

Wed, 26 May 2021 20:19:45 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Thursday, April 29. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures are split, with new-crop fractionally to 7 cents higher, and old-crop fractionally lower. The front-month has been testing resistance at $7.00. Old-crop soybeans are up 2 to 8 cents, while new-crop are fractionally to a penny lower. Winter wheat futures also faced some pressure early in the overnight session, but futures are currently up 1 to 3 cents. Spring wheat futures are 3 to 6 cents higher. The U.S. dollar index is marginally lower. Crude oil futures are posting solid gains.

CME Group announced another hike to margins on corn and wheat futures. The new rates will take effect after the close of business today.

Dredging of Argentina’s key Parana River will continue for another 90 days, the government announced today. That news came as a relief to farmers and exporters.

In a 67-minute address to a joint session of Congress, President Joe Biden pushed massive spending on infrastructure, education, technological initiatives and social services that he said will ensure the country emerges from the coronavirus crisis in a stronger position than before. Biden has proposed or spent $6 trillion in new spending in an effort to convince such voters that activist government can materially improve their lives.

Biden’s new economic plan would eliminate a tax break for many real-estate owners that has enabled them to defer paying capital gains on property sales. The Biden proposal would abolish 1031 exchanges on real-estate profits of more than $500,000.

Biden’s capital gains reform act includes exclusions for family farms… USDA released an analysis of Biden’s plan that said it would defer any tax liability on family farms “as long as the farm remains family-owned and operated.”

China reported an outbreak of African swine fever at a farm in its northern Mongolia region that had 432 pigs, 343 of which had died. This marks China’s 10th official outbreak report of the year, though private estimates say as much as 30% of northern China’s hog herd may have been wiped out by a resurgence of the virus.

Cattle futures dropped in the face of still-soaring boxed beef prices amid strong consumer demand. Cash cattle trade got underway yesterday from $118 to $120, steady to lower compared with last week’s action.

Lean hog futures rallied at midweek, with nearbys leading the market in posting moderate to sharp gains. Cash hog bids fell $1.58 nationally. Today, traders will focus on USDA’s weekly export sales update.

Pro Farmer's First Thing Today: Russia Lowering Export Tax, New York City Reopening and More

Wed, 26 May 2021 20:19:45 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Wednesday, May 6. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures are trading midrange and down 1 to 2 cents after facing pressure through the overnight session. Soybean futures are 3 to 14 cents lower after a choppy overnight session. Old-crop contracts are leading the decline. Winter wheat futures saw two-sided trade overnight, but futures are currently trading low-range and down 5 to 9 cents. Spring wheat futures are mixed. The U.S. dollar index is slightly higher. Crude oil futures have taken back yesterday’s gains.

The Buenos Aires Grains Exchange reports 32.9% of Argentina’s soybean crop has been harvested, which is a 14.4-point jump from last week, but still lags year-ago by 35.3 points. Wet roads and fields prevented farmers from making even bigger strides.

Dry weather since last fall has stunted development of Brazil’s sugar cane crop. Consequently, the commodity trader and supply chain services company Czarnikow expects the country’s Center-South cane crush to come in 7.7% below the year prior and the lowest crush since 2012.

Russia plans to reduce its export tax on soybeans to 20% with a minimum level of $100 per metric ton from July 1, 2021 through September 2022, the economy ministry announced today.

Official gauges across China’s economy fell short of expectations in April. This suggests the country’s strong pandemic bounceback is starting to lose some momentum.

New York City businesses will fully reopen starting July 1, marking an end to many Covid-19 lockdown measures that have restricted their operations for more than a year, Mayor Bill de Blasio said Thursday. Meanwhile, the Centers for Disease Control and Prevention said cruise operators could restart sailings out of the U.S. by mid-July.

China’s rapid development of a digital version of the yuan will not push the Federal Reserve to rush its own digital currency project, Federal Reserve Chair Jerome Powell said earlier this week, adding that China’s approach would not work in the United States.

Shares of airlines, railroads and trucking companies are rolling to their longest streak of weekly gains in more than a century, fueled by investors’ optimism that a resurgence in economic growth will boost profits at transportation companies.

Live cattle ended yesterday mixed, while softer corn prices helped feeders to close moderately higher. Some additional cash cattle trade occurred Thursday in the $118 to $119 vicinity in Kansas and Iowa, which was down from last week but in line with cash action earlier in the week.

May lean hogs gapped lower Thursday after Wednesday’s surge to the upside. The trend of the market still favors market bulls, but some profit-taking to take advantage of recent gains is not surprising. Recent action for the product market has signaled restaurants’ efforts to stockpile meat may be coming to an end.

Pro Farmer's First Thing Today: Corn Futures High, Infrastructure Plan Work and More

Wed, 26 May 2021 20:19:45 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Monday, April 26. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures gapped higher overnight and extended gains to new contract highs of $6.73 ½ for May futures and $5.62 for December. Futures are currently up 9 to 15 cents, with old-crop leading. Soybean futures also registered new contract highs to start the week, but futures have since pared overnight gains to 5 to 8 cents. Old-crop are once again the upside leaders. HRW wheat futures have charged 16 to 19 cents higher, hitting new contract highs, with SRW and HRS wheat futures also at new highs and up 14 to 17 cents. The U.S. dollar index and crude oil futures are under pressure.

With corn prices soaring as stocks dwindle, large Brazilian meatpackers are turning to wheat, Francisco Turra, president of ABPA’s advisory body, told Reuters. He says wheat can fully replace corn in feed for pork and poultry.

Export prices for Ukrainian wheat climbed roughly $15 per metric ton over the past week, with rising demand and spring sowing delays in Russia lifting prices, according to the consultancy APK Inform. It details that both high-quality milling wheat and feed wheat prices are climbing.

CME Group announced it will raise maintenance margins on wheat futures by $200 (10.5%) to $2,100 per contract for May 2021, with the new rates taking effect after the close of business today. Initial margin rates are 110% of maintenance margin rates.

The House is not in session but in “committee work week” while the Senate is working and has several bills in the hopper. The Fed is not expected to take action at the conclusion of its two-day policy setting meeting Wednesday, but the market will be listening for any shifts in the Fed’s transitory inflation position. New tax and spending proposals are also expected from President Joe Biden. The Supreme Court will debate the authority of the Environmental Protection Agency to exempt refiners from biofuel usage mandates.

Restaurants spent much of the past year trying to win back customers. Now, they are struggling to win back employees, reports the Wall Street Journal. Nationwide chains and independent eateries alike said they can’t hire enough workers to staff kitchens and dining rooms, just as Covid-19 restrictions relax and more consumers want to eat out again.

Senator Joe Manchin (D-W.Va.), who’s a key moderate, said last week that Biden and Congress should focus on traditional infrastructure projects such as roads and bridges, an approach broadly favored by Republicans. Manchin said he and the coalition of House moderates known as the Problem Solvers Caucus are “working in a bipartisan, bicameral way” on a path forward on infrastructure.

White House climate envoy John Kerry joined U.S. Trade Representative Katherine Tai and other Biden administration officials in noting Biden is mulling a border adjustment tax to protect U.S. producers from foreign goods or commodities produced under weaker environmental standards.

The March surge in cattle placements was not quite as big as the market anticipated, with those numbers climbing 28.3%, and the number of cattle on feed also came in a bit lighter than anticipated with marketings a bit higher than expected. If anything, Fridays Cattle on Feed report should be given a positive read.

Lean hog futures stabilized last week and ended on a strong note, with a solid showing in the latest Cold Storage Report and strong pork exports providing support.

Pro Farmer's First Thing Today: Expanded Price Limits For Grain Futures, 30x30 Proposal and More

Wed, 26 May 2021 20:19:45 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Friday, April 23. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures are down 5 to 10 cents after yesterday’s runup to another round of contract highs. Daily price limits expand to 40 cents for corn futures after yesterday’s limit-higher close. Soybeans are posting losses of 2 to 8 cents. Both corn and soybean futures are at their highest levels since 2013. SRW wheat futures are 6 to 7 cents lower, while HRW and HRS wheat futures are down 3 to 4 cents. Crude oil futures are slightly higher. The greenback is slightly lower.

The CME Group announced that after a routine biannual review, it has decided to expand daily price limits for Chicago Board of Trade grain and soy futures. The new limits will take effect May 2.

Cargill Inc. announced it will build a new, $350-million canola plant in Regina, Saskatchewan, hoping to profit from the recent surge in demand for oilseeds. Rising consumer demand for vegetable oils has pushed prices for many oilseeds to new highs, and a surge in demand for renewable diesel is being likened to the ethanol boom.

The ag consultancy IKAR lowered its forecast for Russia’s 2021 wheat crop from 81 MMT to 79.5 MMT, noting that farmers will need to resow wheat across a large area of Russia’s central region after the winter.

U.S. farmers want President Joe Biden to explain his 30x30 proposal and think USDA Secretary Vilsack is using “voluntary” as an escape word to avoid growing concern doubts about the executive action proposal.

President Biden in the next few days will unveil new tax rates for the wealthiest Americans. He’s expected to propose a top marginal income tax rate of 39.6% and a capital gains rate of 43.4%. Congressional Democrats have separately proposed a series of changes to capital gains taxation, including imposing the levies annually instead of when they are sold.

Other measures that the administration has discussed in recent weeks include enhancing the estate tax for the wealthy. Biden wants to impose so-called “stepped up basis” for accounting purposes, and value assets when they are passed on to an heir, not at their original cost.

Frozen beef stocks fell roughly 28.9 million lbs. during March, which was nearly double the five-year average drawdown for the month, yesterday’s Cold Storage Report showed. In addition, weekly beef export sales of 24,600 MT were up 38% from the previous four-week average and boxed beef values extended their historic runup. But cattle traders ignored these positive demand signals and pushed futures aggressively lower ahead of today’s Cattle on Feed Report.

Yesterday’s Cold Storage Report showed a drawdown in frozen pork stocks of 31.6 million lbs. during March, which was double the five-year average decline for the Feb. 28 to March 31 timeframe. The pork cutout value rose on Thursday and is now up $2.61 for the week as cash hog bids continue to climb.

Pro Farmer’s First Thing Today: NASS to Review How It Conducts Reports, China's Grain Buys and More

Wed, 26 May 2021 20:19:41 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Thursday, April 15. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures are 3 to 4 cents higher to start the day, with old- and new-crop futures hitting new contract highs overnight. Soybeans are up 2 to 5 cents, with old-crop leading to the upside. Winter and spring wheat futures are 3 to 5 cents higher. Crude oil futures are slightly lower, as is the U.S. dollar index.

Refinitiv trade flow data shows China imported 19.1 MMT of soybeans during the first quarter of the year, which is a 17.9% jump from year-ago, with the U.S. supplying 18.1 MMT of that oilseed. Brazil supplied around 1 MMT of soybeans, down sharply from 7.3 MMT in shipments in the first quarter of 2020.

The Biden administration is expected to announce sanctions on several Russian individuals and entities tied to a widespread government cybersecurity breach that exploited the software of SolarWinds in December. The breach allowed intruders to access emails of a number of gov’t agencies, as well as steal encryption keys essential to safeguarding the correspondence of top U.S. officials.

USDA’s National Agricultural Statistics Service (NASS) will conduct a “deeper dive” review of how it conducts its Quarterly U.S. Grain Stocks Reports, Lance Honig, chief of the agency’s crops branch, said at a virtual USDA data users meeting. A team will review the sampling methods and questionnaires USDA uses to collect the data as well as how the agency processes the information.

USDA Secretary Tom Vilsack laid out USDA’s goals to deal with food insecurity and nutrition programs in the president’s budget request, and the agency’s current focus on programs to address longtime racial discrimination during a House Ag Appropriations Subcommittee hearing.

U.S. climate envoy John Kerry is in Shanghai today. He will meet with Chinese officials as the world’s two largest carbon emitters seek rare common ground.

Everything has been pretty quiet on the cash cattle market front, with the exception of some light trade in the dressed market at steady prices. On a more encouraging note, Choice boxed beef pushed $2.80 higher at midweek and Select rose 77 cents.

Daily hog slaughter tallies have been relatively light this week, but cash hog bids have continued to climb, a possible indication that packers are encountering tightening supplies in the aftermath of last spring’s processing debacle.

Pro Farmer's First Thing Today: Sen. Bernie Sanders Proposes Tax Policy Updates, Snow in Wheat Country and More

Wed, 26 May 2021 20:19:41 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Friday, April 16. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures held to a narrow, two-sided trading range overnight, with futures currently trading high-range and up 2 to 3 cents. The market has not yet challenged yesterday’s contract highs. Soybeans are up 5 to 9 cents, notching new highs for the week, with old-crop leading gains. Wheat futures are steady to 2 cents higher at week’s end. Crude oil is near unchanged, with the U.S. dollar index slightly lower.

Rain and snow fell across much of the HRW wheat producing region overnight, with moisture expected to continue today. The snow is not expected to harm crops; rather, the event will boost soil moisture across the region, with the exception of the Texas Panhandle and the western Oklahoma Panhandle, reports World Weather Inc.

China’s GDP rose a record 18.3% in the first quarter from year ago, a surge reflecting a big recovery its economy in the wake of the Covid-19 pandemic. It was also up from the fourth quarter 2020 result of 6.5%.

The U.S. housing market is 3.8 million single-family homes short of what is needed to meet demand, according to a new analysis by mortgage-finance company Freddie Mac. The estimate represents a 52% rise in the nation’s home shortage compared with 2018.

Tax loopholes and federal subsidies that benefit the oil, gas, and coal industries would be eliminated under a bill proposed by Sen. Bernie Sanders (I-Vt.) and Rep. Ilhan Omar (D-Minn.). The bill also proposes updating below-market royalty rates for oil and gas production on federal lands and prohibiting taxpayer-funded fossil fuel research.

Meanwhile, Private equity funding for the U.S. oil sector is drying up, prompting stricken operators to make “last gasp” efforts to boost production and cash flow to attract buyers, the Financial Times reports.

EPA is seeking input on biofuel policy beyond 2022 when the current authority for the Renewable Fuel Standard (RFS) expires, Reuters says, quoting four sources familiar with the situation. They say EPA is reaching out to the oil, corn and biofuel lobbies to “reshape the regulation.”

China’s first quarter pork production shot 31.9% higher vs. year-ago, marking the highest quarterly volume in two years, according to its National Bureau of Statistics. China has been working to rebuild its hog herd that was nearly halved by African swine fever in 2018 and 2019, with a resurgence of the virus hindering rebuilding efforts over the winter.

Cash cattle trade got underway yesterday at mostly steady prices. Trade occurred from $123 to $124 in the Iowa and Nebraska markets, with Colorado, Kansas and Texas reporting trade in the $120 to $121 vicinity. Boxed beef values continued upward.

Lean hog futures posted sharp to limit losses on Thursday, and daily trading limits will expand to $4.50 today. The market has posted a very impressive rally, but recent price action signals a top may be in the works. Cash hog bids climbed an average of $1.43 on Thursday.

Pro Farmer's First Thing Today: Chinese Grain Purchases, Housing Market is Hot and More

Wed, 26 May 2021 20:19:41 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Wednesday, April 14. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures are 5 to 7 cents higher, with December corn hitting a new contract high of $5.10 ¼ overnight. Soybeans are also rallying, with futures 6 to 9 cents higher and old-crop leading gains. Winter and spring wheat futures are up 5 to 8 cents to start the day. The U.S. dollar index is just below unchanged, and crude oil futures are posting solid gains.

The market is increasingly concerned with dry conditions for Brazil’s safrinha corn crop, some of which is starting to pollinate and some of which is just germinating/emerging.

Commercial grain sources signal China will significantly accelerate shipments of U.S. corn purchases during the May-August timeframe. If so, World Board’s assumption that around 6 MMT in U.S. corn sales to China will be rolled forward.

A report from a Brazilian ethanol industry group signals that in the 2020-21 marketing year ending in March, corn-based ethanol production rose 58% from the year prior as new and retrofitted facilities came online.

Beijing warned on Tuesday it was determined to stop Taiwan from getting close to Washington with the use of military action, ahead of a visit by a former U.S. politician and officials to the island at President Joe Biden’s request. A spokesman for the Taiwan Affairs Office of the State Council said the recent deployment of the largest fleet of warplanes to Taiwan’s air defense identification zone (ADIZ) was to tell Taiwan that moving closer to the U.S. to seek independence would fail.

Vice President Kamala Harris will step into her new role addressing the causes of the swell of migrants arriving at the southern border, meeting today with outside experts on Central America’s Northern Triangle countries.

The housing market is hot in the U.S. and lumber prices are even hotter. The frenzy to buy is so intense that half of the homes on the market are selling within a week, according to Redfin. There is plenty of lumber around, but there’s a shortage of sawmill capacity to turn those trees into usable wood.

China notified USDA that new African swine fever (ASF) cases were detected in live hogs, making it the fourth notification since the end of January, according to a report from a U.S. ag attaché.

New Zealand announced today it will halt the export of livestock by sea after a transition period of up to two years, citing animal welfare concerns. Its main trading partners include Australia and China.

Fund long liquidation continued Tuesday in the cattle market, with feeders pressured by the renewed rally in corn futures. Nearby live cattle contracts are now trading right in line with last week’s cash action.

Lean hog futures saw a choppy day of trade on Tuesday, which was a bit disappointing considering an impressive surge in the pork cutout value mid-morning and strong movement.

Pro Farmer's First Thing Today: Chinese Soybean Imports, Russia Bans Biden Cabinet Members and More

Wed, 26 May 2021 20:19:41 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Tuesday, April 20. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures are 4 to 5 cents higher, with all but the front-month registering contract highs. Soybeans have soared 10 to 24 cents, with old-crop leading the charge to new contract highs. Winter and spring wheat futures are 3 to 5 cents higher, but futures have not yet taken out yesterday’s highs. The greenback faced pressure overnight, but it has since pared early losses. Crude oil futures are up slightly.

China imported 7.18 MMT of soybeans from the U.S. during March, a 320% surge from shipments the year prior, according to Chinese customs data released today. This came as rain and late crop development slowed the start of Brazil’s shipping season.

South American Crop Consultant Dr. Michael Cordonnier cut his Brazilian corn crop projection, and his bias is lower going forward based on dry weather. Besides crop lateness and the dry pattern, Cordonnier says farmers are also worried about an aggressive new corn pest. Cordonnier maintained his Brazilian soybean crop projection of 133 MMT, and his bias is neutral to slightly higher going forward. Rabobank yesterday trimmed its Brazilian corn crop projection and it hiked its bean crop forecast.

The Russian Ministry of Foreign Affairs on Friday announced that several members of President Joe Biden’s Cabinet were banned from entering Russia in retaliation for recent U.S. sanctions levied on the nation and the expulsion of 10 Russian diplomats in retaliation for what the White House says is the Kremlin’s U.S. election interference, a massive cyber-attack and other hostile activity.

Moscow’s military presence at Ukraine’s borders is projected to “reach 56 battalion tactical groups with 110,000 troops,” testified Ukraine Defense Minister Andrii Taran before the European Parliament’s Security and Defense Subcommittee.

Chinese President Xi Jinping on Tuesday called for more equitable management of global affairs and, in an implicit rejection of U.S. dominance, said governments shouldn’t impose rules on others. Xi’s speech at an economic forum comes amid rising tension with China’s neighbors and Washington.

U.S. miles driven are back to pre-pandemic levels and international ethanol prices are at a six-year high. The U.S. ethanol inventory is at a 21-week low and the U.S. blending demand is at a 13-month high, CNBC reported.

The Biden administration will make an additional 22,000 seasonal guest-worker visas available this year ahead of the summer season, the Wall Street Journal reports. This is on top of the current 66,000 visas now available annually.

Boxed beef values edged slightly higher to start the week, with the restrained gains and limited movement likely signaling some resistance to lofty price levels.

The pork cutout value jumped to start the week and movement improved after a slow day Friday. Chinese trade data out over the weekend signaled the country is still importing large amounts of pork. Cash hog bids climbed a national average of 45 cents Monday.

Pro Farmer's First Thing Today: Argentinian Soybeans, State of Emergency in Japan and More

Wed, 26 May 2021 20:19:41 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Wednesday, April 21. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn and soybean futures saw a mix of followthrough buying and profit-taking overnight, with a few contracts registering new contract highs. Corn is now mixed, and soybeans are trading low-range and steady to 2 cents higher. SRW wheat futures are 4 to 5 cents higher after another night of sub-freezing temperatures for winter wheat country, with HRW wheat up 1 to 7 cents. Neither market has challenged yesterday’s spike highs. Spring wheat futures are 5 to 10 cents higher but well within yesterday’s trading range. The U.S. dollar index is up slightly, with crude oil futures under pressure.

China issued guidelines today recommending cuts to corn and soymeal use in pig and poultry feed. China is thought to have a much larger corn deficit than it has let on, fueling aggressive corn purchases and a global price rally.

A U.S. attaché in Argentina estimates the country’s 2020-21 bean crop at 45 MMT, which is 2.5 MMT under USDA’s official production peg. It expects the country to export 5.5 MMT of that grain, which is also 1.35 MMT lighter than USDA projects.

Japan is preparing to reintroduce a state of emergency in Tokyo and Osaka. This comes with just three months to go before the Summer Olympics are set to commence in Tokyo. With Covid-19 infections rising sharply again, the governor of Tokyo said Tuesday that she planned to ask the central government to bring back a state of emergency for a third time in the capital.

Self-employed businesses, as well as farm and ranch partnerships, would be eligible for larger pandemic relief loans under a bill introduced yesterday by a bipartisan group of senators. The bill would allow farm and ranch partnerships to apply for Paycheck Protection Program (PPP) loans using “gross income” on their tax returns to get larger loans.

A bipartisan group of senators reintroduced the Growing Climate Solutions Act yesterday, a bill that would establish a federal program to help agriculture producers access carbon credit markets. The American Farm Bureau Federation is one of more than 60 agricultural and environment organizations to back the measure.

Senator Susan Collins (R-Maine) said Biden’s infrastructure proposal fails to sufficiently embody a “fix-it first” philosophy and instead funnels funding to electric vehicles. “What the administration is doing is spending billions more on subsidies related to electric vehicles, than on the roads and bridges on which they will travel,” Collins said.

Senator Ed Markey (D-Mass.) and Representative Alexandria Ocasio-Cortez (D-N.Y.) reintroduced their Green New Deal resolution, keeping up pressure on the White House to take sweeping action to address climate change. “We’re going to transition to a 100% carbon free economy that is more unionized, more just, more dignified and guarantees more health care and housing than we ever have before,” the far left New York Democrat said at a news conference yesterday.

Nearby live cattle contracts below last week’s cash trade, signaling the market would not be surprised by a setback after several weeks of gains. So far, all is quiet on the cash market front.

June lean hog futures hold just a $3 premium to the cash market versus the usual $12 for this point in the season. This may hint at an early seasonal high is near. Cash hog bids continue to climb, rising another $1.14 on Tuesday.

Pro Farmer's First Thing Today: Frost and Freeze Possible, USDA Changes QLA Handbook and More

Wed, 26 May 2021 20:19:41 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Monday, April 19. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures have rallied 6 to 8 cents, with old-crop leading the charge. December corn registered a new contract high this morning. Soybean futures are 5 to 9 cents higher, with old-crop leading gains. November beans have come within a penny of the contract high. Winter wheat futures are also rallying amid cold weather threats, with futures 2 to 4 cents higher. Spring wheat futures are also 2 to 4 cents higher. Crude oil futures are posting slight losses. The U.S. dollar index has dived to its lowest point since early March.

Frost and freezes are possible for many winter wheat producing areas from west Texas through the Texas Panhandle and western Oklahoma into central Oklahoma and Central Kansas, as well as farther to the north on Wednesday, reports World Weather Inc. “Most of the crop will come through the cold weather with mostly burned vegetative growth, but no long-term production impact,” the weather watcher reports.

The U.S. will host its two-day virtual Leaders’ Summit on Climate on April 22-23. The summit is a key part of President Joe Biden’s attempt to increase Washington’s international role on climate matters after former President Donald Trump exited the Paris Agreement in 2019.

Biden plans to meet with a bipartisan group of lawmakers at the White House today as outreach continues on his $2.25 trillion infrastructure-and-tax plan. The group will discuss “historic investments in the American jobs plan including in highways, drinking water systems, broadband and the care economy,” White House Press Secretary Jen Psaki said.

Economists surveyed by the Wall Street Journal project U.S. gross domestic product will grow 6.4% this year, measured from the fourth quarter of last year to the same period of this year. Meanwhile, they expect employment this year to grow 5%.

USDA recently made changes to the Quality Loss Adjustment (QLA) program handbook. Insured crops with production to count reduced because of the ratio between established insurance price and sales price which received a WHIP+ payment are now ineligible if they received a quality based crop insurance indemnity and WHIP plus indemnity.

Beef production slipped 0.1% the week ending April 17, a retreat that comes at a time when the product market is clamoring for more production. Boxed beef values extended their already impressive rallies and cash cattle trade ranged from $120 to $125 last week, with northern locations leading.

Daily trading limits for lean hog futures are expanded today after heavy selling Friday. Heavy losses to close last week does not bode well for price action early this week. Cash hog bids did climb a national average of $1.71 on Friday.

Pro Farmer's First Thing Today: CRP Enrollment, Biden Kicks Off Climate Summit and More

Wed, 26 May 2021 20:19:41 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Thursday, April 22. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures hit new contract highs overnight and the market is currently trading high-range and up 3 to 6 cents, with old-crop leading. The market is at its highest level since July 2013. Soybean futures also climbed to new highs overnight with futures currently up 13 to 18 cents. Old-crop contracts are leading gains, and the front-month is at its highest level in seven years. Winter wheat futures are 7 to 8 cents higher, while spring wheat is up 9 cents. SRW and HRS wheat are registering new contract highs. The U.S. dollar index is under light pressure, as are crude oil futures.

Chinese buyers have reportedly bought at least 500,000 MT of new-crop French wheat for shipment between July and September, with some saying the purchase could be as high as 1 MMT. The news reminds of tight feed supplies within China.

Ag Secretary Tom Vilsack announced USDA will open enrollment in the Conservation Reserve Program (CRP) with “higher payment rates, new incentives, and a more targeted focus on the program’s role in climate change mitigation.” It didn’t take long for commodity traders to wonder if this is the first of several steps by Democrat-controlled USDA and the Biden administration to boost the idling of acres by a significant amount, despite tight carryovers of some key crops.

President Joe Biden, beginning at 7:00 a.m. CT, kicks off a two-day virtual climate summit aimed at jump-starting negotiations for a global deal to curb emissions worldwide.

California Democratic Governor Gavin Newsom, standing at a parched Lake Mendocino, declared a drought emergency in Sonoma and Mendocino counties. The governor has been under pressure from some to declare a statewide drought emergency but has balked at such a move.

Chinese hog producer Wens Foodstuff Group yesterday reported a 71% dive in first quarter earnings, despite gains from the poultry side of its business. And the country’s No. 2 and its No. 4 hog producers also issued profit warnings last week.

Tyson Fresh Meats is now a member of the U.S. CattleTrace, a program formed by a number of state cattlemen’s organizations aimed at developing a national infrastructure for animal disease traceability in the U.S. cattle industry. The group uses ear tags with ultra-high frequency technologies to do so.

Cattle futures came under heavy pressure at midweek, with futures divorcing themselves from action in the product market. Boxed beef values continue to soar, and prices are at their second highest levels on record. An uptick in cow processing has sparked some concerns about an abundance of ground beef, and rising feed prices have caught the market’s attention.

Lean hog futures faced pressure on Wednesday, with rising feed costs grabbing the market’s attention. The market is also on edge ahead of another USDA update on weekly pork exports. Last week’s report featured a major slowdown in pork exports, particularly to China.

Pro Farmer's First Thing Today: Unemployment Rate Drops, OPEC to Boost Production and More

Wed, 26 May 2021 20:19:38 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Monday, April 5. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Old-crop corn futures are trading midrange and chopping around unchanged, while new-crop futures are trading high-range and up 6 cents. Soybean futures are posting solid gains of 11 to 14 cents to start the week, with future thus far stopping short of challenging last week’s contract highs. SRW wheat futures are 2 cents higher, and HRW and spring wheat futures are mixed to higher. Crude oil futures are under pressure, and the greenback is again holding near unchanged. Many stock exchanges across the globe are closed in observance of Easter. Markets in China and Hong Kong are closed for the Qingming Festival.

USDA today will issue its first Crop Progress and Condition Report of 2021 and on Friday it will release updated supply and demand forecasts.

The expected first look at President Joe Biden’s fiscal 2022 discretionary budget request was not unveiled Friday. It seems there are funding disagreements among some departments, with most of the focus on the Pentagon.

Japanese Prime Minister Yoshihide Suga will become the first foreign leader to hold a face-to-face meeting with President Biden in a summit planned for April 16, where China will be high on the agenda.

The U.S. economy added 916,000 jobs in March, up from 416,000 in February and the most since August. The unemployment rate edged down to 6.0% from 6.2% in February in a sign that the recovery was accelerating.

OPEC and an alliance of other top oil producers agreed to boost their collective production by more than two million barrels a day over the coming months, betting on resurgent demand as the pandemic recedes.

Mortgage rates are climbing. The average for a 30-year loan was 3.18%, up from 3.17% the prior week and the highest since June, Freddie Mac data showed. Rates have increased from the record low of 2.65%, reached in early January.

After several brands, including Nike and Adidas, said they would no longer buy cotton from Chinese suppliers in Xinjiang over reports that the growers rely on forced labor by ethnic minorities in China to produce their cotton, Beijing called for a boycott. But now, sales of most of the boycotted stuff are soaring as Chinese consumers rush to buy items, lest the government block their sale entirely.

A cold winter, high density of pigs amid restocking and new strains of African swine fever fueled new outbreaks of the virus across China’s northeast, northern China and Henan province, the country’s third-largest hog producing province, according to Reuters. At least 20% to 25% of the herd was affected according to a source.

Last week’s cattle kill fell 6.2% from the week prior, with processing down 3.5% from year-ago, with some holiday downtime coming into play. Meanwhile, boxed beef prices continue to soar. Cash cattle prices climbed to $117 to $120.50 late last week, with the western Corn Belt leading gains.

Lean hog futures ended last week on a strong note, with bulls in part propelled by a surge in weekly pork export sales to a new high for 2021. Cash hog bids jumped $2.24 nationally on Friday.

Pro Farmer's First Thing Today: USDA Planting Intentions Report, Brazilian Soybean Exports and More

Wed, 26 May 2021 20:19:38 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Wednesday, March 31. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures are fractionally to a penny higher in most contracts and soybeans have retraced 5 to 7 cents of yesterday’s losses as traders prepare for USDA’s key reports on quarterly grain stocks and survey-based planting intentions. Winter and spring wheat futures are steady to a penny higher. The U.S. dollar index has moved off its multi-month highs and crude oil futures are also facing light pressure.

Key USDA reports on planting intentions and quarterly grain stocks are coming today. These reports, especially the quarterly grain stocks update, have a history of surprising the market and causing some major price moves.

Brazil could export a record amount of soybeans in March, assuming a best case scenario, according to the association of exporters ANEC.

China’s official purchasing managers’ index (PMI) climbed 1.3 points from February to March, with the index now standing at 51.9 points, a three month high, according to the country’s National Bureau of Statistics.

Consumer confidence surged more than expected in March. The Conference Board reported Tuesday that its index of consumer confidence rose from 90.4 in February to 109.7 in March, the highest level since the beginning of the pandemic.

The Wall Street Journal reports that on Monday morning, 24 container ships carrying tens of thousands of boxes holding millions of dollars’ worth of washing machines, medical equipment, consumer electronics and other goods were anchored off the coast waiting for space at the ports of Los Angeles and Long Beach.

In a blow to AstraZeneca’s Covid-19 vaccine, Germany says it will halt its use for people under 60 starting today. The move, endorsed by regional health ministers and announced by Chancellor Angela Merkel, comes after new cases of blood clots associated with the vaccine.

President Joe Biden today will call for a $2.25-trillion investment in the nation’s roads, waterways, airports, electric grid and broadband, arguing that a literal rebuilding of the nation’s infrastructure would lead to an economic boom, help fight climate change, advance racial equity and advance American competitiveness.

U.S. gasoline sales for the week ending March 20 were 10.1% higher than at the same point last year. It’s the first time this year that gasoline demand surpassed 2020 levels, according to new data released today by Oil Price Information Service (OPIS) by IHS Markit.

Boxed beef values soared yesterday and movement picked up — a welcome shift after light tallies the past three sessions. Asking prices for cash cattle range from $117 to $120, but so far there have just been some light sales.

May through July lean hog futures once again shot to new contract highs on Tuesday, with other contract months close behind. Cash hog bids slipped 54 cents on Tuesday.

Pro Farmer's First Thing Today: Grain Futures, Suez Canal Backlog and More

Wed, 26 May 2021 20:19:38 GMT

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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.

Pro Farmer's First Thing Today: Grain Futures, Consumer Price Index Rises and More

Wed, 26 May 2021 19:09:51 GMT

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Good Morning farm country. Davis Michaelsen here with your morning update for Thursday, May 13. From Pro Farmer’s First Thing Today, these are some of the stories we are watching this morning:

Corn futures faced pressure overnight and futures are currently trading low-range and down 8 to 14 cents, with July leading losses. Soybean futures are mostly 8 to 18 cents lower, with new-crop leading to the downside. After the red-hot rally, a pullback is healthy and so far has done little to alter the bullish posture of these markets. HRW wheat is 5 to 8 cents lower and SRW wheat is down 6 to 7 cents lower, extending these markets’ recent sideways action. HRS wheat futures are down 1 to 6 cents. The U.S. dollar index is posting a corrective bounce. Crude oil futures are posting solid losses on news the Colonial pipeline system is reopening.

Operators of the 5,500-mile Colonial pipeline said it restarted operations late Wednesday, but said it will still take time for its operations to return to normal.

The Consumer Price Index released Wednesday showed that consumer prices rose 4.2% in April from a year earlier. That was the highest jump since September 2008 and well above what analysts were forecasting. If inflation persists, central bankers would have to abandon plans to keep their easy-money policies in place until the labor market is fully healed. But Fed officials delivering remarks Wednesday did not signal any shift in the Fed’s view that the situation with inflation will be transitory.

In a clear voice vote, House Republicans led by Minority Leader Kevin McCarthy (R-Calif.) voted to remove Wyoming lawmaker Liz Cheney as the party’s No. 3 leader in the House. McCarthy quickly moved to build support for replacing Cheney, with New York’s Representative Elise Stefanik, a more moderate lawmaker.

“Exceptionally good” operating performance for JBS’s U.S. meat operations helped swing meatpacker JBS back to profitability in the first quarter, with the world’s largest meatpacker noting strong demand for meat as U.S. restaurants started to reopen. It also said strong exports from the U.S. to Asian countries also helped it to post a net profit.

Some light cash cattle trade got started yesterday generally steady to up slightly relative to last week’s trade. This week’s kill is lagging the week prior by roughly 2%, with the market concerned about a shortage of workers at a time when beef demand is soaring and market-ready supplies are abundant.

Average hog weights in the Iowa/southern Minnesota/South Dakota market dropped 1.2 lbs. to 283.9 lbs. the week ending May 8, which is 11.2 lbs. under year-ago levels. Supplies are tightening seasonally, which has supported cash prices.