First Thing Today
This morning report highlights the overnight trading session and key domestic and global developments impacting markets.
Diminished rain chances for the Corn Belt over the weekend, but rain possible mid-month. StoneX’s U.S. corn crop forecast well under USDA’s. China to probe fertilizer firms.
Cordonnier sticks with U.S. yield pegs, but anxious about dry northwest Corn Belt. Frost shrinks Brazil’s winter wheat crop. Egypt to raise subsidized bread prices. ASF spreading across the Dominican Republic.
Wheat rallying to kick off August. Dry start to August, but temperatures not expected to be threatening. Big slowdown in soybean crush expected. Republican senators seek meeting with Biden on biofuels.
Profit-taking moved in overnight. Spring wheat tour confirms heavy toll of drought. China to suspend some fertilizer exports. Pork and cash hog prices fall.
Second day of spring wheat tour finds even lower yields. Bunge CEO optimistic Chinese demand for corn is here to stay. USDA confirms ASF in Dominican Republic.
Excessive heat continues for central U.S.; severe weather possible. Day 1 of spring wheat tour calculates a sub-30 bpa yield. Fed meeting ends today. CDC urges masks indoors for everyone in areas of surging cases.
Markets bounce as crop condition ratings slide. Sultry weather grips Northern Plains and western Corn Belt. Latest WHIP+/ag disaster bill authorizes up to $8.5 billion for eligible 2020 and 2021 disasters.
Hot, dry week likely for much of the Midwest & Plains. Low Parana River water levels likely to get worse before they get better. Vilsack predicts moderation in food inflation. Friendly cattle reports may boost futures.
Evening weather update calls for less Midwest rain. French wheat crop ratings dip again, with heavy rains eroding crop prospects. Chinese soybean imports could slow 2H of 2021. Taper talk at the Fed.
Profit-taking overnight. Industry still trying to get a handle on Canada’s wheat and canola crops. Central China is dealing with floods. FTC adopts policy statement to take on ‘right to repair.’
A high pressure ridge could lead to more drying in western Corn Belt, Northern Plains. USDA isn’t the only one missing the mark on Canada’s wheat crop. Odds are low for a proposed bill to end corn-ethanol mandate.
Grain and soy futures rallied overnight amid a concerning forecast for some areas and lower-than-expected corn and spring wheat condition ratings.
Spring wheat still soaring amid weather woes, with the warm dry forecast for the western Corn Belt concerning. China’s grain imports are still soaring. Its Sichuan province reported ASF in illegally transported piglets
Extreme heat coming for spring wheat country. Brazil’s corn contract washouts could be the highest since 2016. Xi raises food security to national security concern. Germany confirms its first cases of ASF in farm pigs.
Another slowdown in crush expected for June, with export sales also out today. Low water levels on Argentina’s Parana River still causing headaches. Chinese pork production hits seven-year high in Q2
Storms expected to roll across the Midwest from today forward. China’s summer wheat crop up from 2020, but quality is a concern. Biden to meet with Senate Democrats about their $3.5-tril. budget reconciliation plan.
Spring wheat CCI rating plunges again. Chinese purchases of soybeans, corn, wheat and meat all up from year-ago through June. Transportation spending bill has a spending offset issue. Cash hog bids dive.
Markets favoring the upside as trade readies for USDA reports. Timely rain for much of the Corn Belt, but Upper Midwest remains dry. China to boost boost storage capacity and ease restrictions for small hog producers.
Price action was relatively quiet overnight on a lack of fresh news.
More rain for the southern, eastern areas of the Midwest heading into the weekend. Wildfire disrupting shipping at Canada’s largest port. Global food prices slide for the first time in a year.