Biden Delays Departure for Rome | FTT Audio October 28, 2021
No clear price tone developed overnight as grain and soy futures held in tight trading ranges. As of 6:30 a.m. CT, corn futures are trading 1 to 2 cents lower, soybeans are steady to 2 cents higher, winter wheat futures are 2 to 3 cents lower and spring wheat futures are around 4 cents higher. Front-month crude oil futures are around $1.30 lower, while the U.S. dollar index is anchored near unchanged.
President Joe Biden delayed his trip to Rome to go again to Capitol Hill to get a vote on the bipartisan infrastructure measure (BIF). The Washington Post reports Biden will announce this morning a framework on a social and climate change spending (BBB) package that would garner the support of all Democrats.
The funding mechanism for the BBB package is no longer a wealth income tax but instead a surtax on wealthy Americans. Under the plan, wealthy Americans will pay an additional 5% tax on income over $10 million, and another 3% on top of that on aggregate gross income over $25 million.
Data for the third quarter is expected to show the slowest growth pace since the second quarter of 2020, when the economy contracted sharply amid Covid restrictions. According to a Reuters survey of economists, the economy likely grew at a 2.7% annualized rate in the third quarter.
China’s average pork price in 16 provincial regions fell 15% in September and was down 61.8% versus year-ago, according to ag ministry data. Chinese domestic pork and hog prices continue to fall amid increased supplies and a decline in demand.
U.S. Trade Representative Katherine Tai will be at the National Chicken Council Annual Conference in Washington. There are no indications on what she may discuss, but Tai’s recent appearances have focused on touting the Biden administration’s worker-centered trade policy.
This week’s cash cattle trade started at $1 to $2 higher prices in the Southern Plains and $2 to $4 higher in the northern market on Wednesday. The firmer cash trade supported live cattle futures, which modestly extended Tuesday’s strong upside push.
The pork cutout value was another 26 cents lower on Wednesday, though the 451.12 loads of product that changed hands at the slightly lower price was more noteworthy. But packers must be able to move a lot of product at higher prices to signal a bottom.
