First Thing Today | April 19, 2023
Good morning!
Corrective selling overnight... Corn, soybean and wheat futures pulled back from gains earlier this week amid corrective selling overnight and negative outside markets. As of 6:30 a.m. CT, corn futures are trading 3 to 4 cents lower, soybeans are 4 to 6 cents lower and wheat futures are 7 to 11 cents lower. Front-month crude oil futures are more than $1.50 lower and the U.S. dollar index is around 450 points higher this morning.
Ukraine says grain inspections resuming... Inspections of vessels carrying grains from Ukrainian ports have resumed at Turkey's Bosphorus Strait after two days of discussions between Kyiv and Moscow, a spokesperson for the Joint Coordination Center in Istanbul said on Wednesday. Ukrainian Agriculture Minister Mykola Solsky said Moscow was increasing difficulties for Ukraine at a time when three eastern European countries have banned imports of Ukrainian grain and food products. “Obviously, the Russians could not fail to take advantage of these nuances on the western (Ukrainian) border,” Solsky said. RIA news agency quoted the Russian foreign ministry as on Wednesday as saying Ukraine and the United Nations were causing difficulties with the ship inspections.
EU plans farmer support for Ukraine grain imports... The European Union is preparing 100 million euros ($109.32 million) of compensation for farmers in countries bordering Ukraine and plans to introduce restrictions on imports of Ukrainian grain. The European Commission, which oversees trade policy in the 27-nation European Union, will take what it described as “preventative measures” for certain categories of grain and oil seeds – particularly, wheat, maize, sunflower seeds and rape seed. The European Union can limit the import of products into the whole or part of the bloc, while still allowing transit. European Commission President Ursula von der Leyen will reportedly present three proposals. European Trade Commissioner Valdis Dombrovskis is set to discuss the plans later on Wednesday with ministers from the affected countries - Bulgaria, Hungary, Poland, Romania and Slovakia - as well as with Ukrainian counterparts.
Bulgaria introduces temporary ban on Ukraine grain imports... Bulgaria temporarily banned imports of grain from Ukraine except those in transit to other countries. “Over the past year, a significant amount of food has remained in the country and disrupted food chains,” Prime Minister Galab Donev said.
Poland, Ukraine reach deal on grain transit... Poland reached an agreement on restarting transit of Ukrainian grains through its country as of Friday, Polish Agriculture Minister Robert Telus said. He noted trucks carrying Ukrainian grain will be sealed and monitored by GPS as they pass through Poland.
Euro zone inflation eases but core prices rise... Euro zone consumer inflation eased to 6.9% above year-ago in March, primarily on a rapid fall in energy costs. But excluding unprocessed food and fuel, so-called core inflation increased 7.5%, up from a 7.4% gain in February.
British consumer inflation eases, but not as much as expected... Annual inflation in Britain fell to 10.1% in March, down from 10.4% in February. But that was still higher than expected. Though gasoline and diesel prices dropped, food prices climbed steeply. The prices of some goods, such as bread and cereals, rose at a record pace. The figures — the last significant inflation data before the Bank of England’s next meeting in early May — increase the possibility of further interest rate rises.
Regan testifies before House Ag panel today... EPA Administrator Michael Regan will testify before the House Ag Committee today, where GOP lawmakers will likely hammer him on regulations they say hurt farmers. Key issues include (1) the WOTUS rule, (2) biofuels and (3) pesticide regulation under the Federal Insecticide, Fungicide and Rodenticide Act, including proposed restrictions on the herbicide atrazine and other crop protection chemicals.
Biden to push back on GOP efforts to reduce SNAP... President Joe Biden today to push back against GOP efforts to reduce food aid and health care funding/availability. The president will make the remarks during an address at the International Union of Operating Engineers Local 77 training center, his first public rebuke of House Speaker Kevin McCarthy’s (R-Calif.) plan to expand SNAP work requirements beyond previous levels to rein in the program’s spending as part of the coming battle over the debt limit. “Let’s be clear, this is a non-starter,” said Senate Ag Chair Debbie Stabenow (D-Mich.) about the GOP SNAP work requirement plans.
Wholesale beef prices continue to climb... Choice boxed beef prices firmed $1.08 and Select gained $2.29 on Tuesday, extending their recent rallies. But just as noteworthy, movement improved to 124 loads on the day. The increased movement amid the higher prices suggests retailers may fear wholesale prices are likely to keep rising.
Overnight demand news... Jordan tendered to buy up to 120,000 MT of optional origin milling wheat.
See ‘Policy Updates’ for late-breaking morning news updates... For updates to items in “First Thing Today” or any late-breaking morning news stories, check “Policy Updates” on www.profarmer.com.
Today’s reports
- 9:30 a.m. Weekly Ethanol Production — EIA
- 10:00 a.m. Fruit and Tree Nuts Data — ERS
- 10:00 a.m. Vegetables and Pulses Data — ERS
- 2:00 p.m. Broiler Hatchery — NASS
- 2:00 p.m. Livestock Slaughter - Ann. — NASS
- 2:00 p.m. Milk Production — NASS
- 2:00 p.m. National Hemp Report — NASS
