Biden Signs BIF | November 16, 2021
Soybean futures faced light profit-taking overnight, while corn and wheat futures also weakened. As of 6:30 a.m. CT, corn futures are around a penny lower, soybeans are 2 to 3 cents lower, winter wheat futures are 2 to 4 cents lower and spring wheat is 6 to 8 cents lower. Nearby soymeal futures are mildly firmer this morning but failed to push above Monday’s highs overnight. Front-month crude oil futures are around 50 cents higher and the U.S. dollar index is around 110 points higher this morning.
Following are highlights from USDA’s crop progress and condition update for the week ended Nov. 14.
- Corn: 91% harvested (86% on average)
- Soybeans: 92% harvested (93%)
- Cotton: 64% harvested (64%)
- Winter wheat: 94% planted (94%), 81% emerged (83%), 46% “good” to “excellent” (45%)
President Joe Biden on Monday signed the $1 trillion bipartisan infrastructure bill that he said will overhaul the nation’s infrastructure and boost the economy that has been battered by the Covid-19 pandemic. The president called the legislation as a job creator and an example of him fulfilling a campaign promise to reach across the aisle to get things done.
President Biden and Chinese President Xi Jinping used a virtual meeting Monday evening to cool tensions between the two powers as the leaders seek to manage issues they disagree on and identify ways to communicate to avert conflict. The meeting lasted more than three hours, with the White House saying the two discussed a range of topics.
Weather in Brazil remains mostly favorable for crop development. As a result, Crop Consultant Dr. Michael Cordonnier left his Brazilian estimates for soybeans and corn unchanged, though he has a neutral to slightly higher bias for both crops.
Brazil cut import tariffs by 10% on many goods and services until Dec. 31, 2022. The list of goods included ethanol, for which the tariff was reduced to 18%.
This morning’s monthly report from the International Energy Agency (IEA) said the end is in sight for the crude oil’s rally, even as some oil traders and producers predict $100 oil.
Tyson Foods reported a jump in sales after sharply raising prices for its beef, chicken and pork, citing growing costs the company said were likely to persist. Increased meat prices allowed the company to overcome pandemic-related labor shortages.
Last week’s average cash cattle price came in at $131.47, up another $2.24 and the highest weekly average since early June 2017. Based on the muted buying in December live cattle futures on Monday, traders may sense a pause in the cash market this week.
The pork cutout value firmed $7.49 Monday morning but ended the day 78 cents lower as strong initial gains in most cuts weren’t sustained. Weakening cash fundamentals will continue to limit buyer interest in futures.