First Thing Today Audio | August 10, 2021
Corn futures are down 4 to 5 cents, while soybean futures are up 20 cents in the front month and 7 to 9 cents in deferreds. Winter wheat futures are up 1 to 2 cents, while spring wheat is choppy to down 2 cents. The U.S. dollar index is slightly higher. Crude oil futures are working to retrace yesterday’s losses.
Following are highlights from USDA’s crop progress and condition update for the week ended Aug. 8.
- Corn: 95% silking, 56% in dough, 8% dented, 64% “good” to “excellent” (G/E)
- Soybeans: 91% blooming, 72% setting pods, 60% G/E
- Spring wheat: 11% G/E, 38% harvested
- Winter wheat: 95% harvested
- Cotton: 88% squaring, 63% setting bolls, 5% bolls open, 65% G/E
Crop Consultant Dr. Michael Cordonnier left his U.S. corn yield projection at 175.5 bu. per acre and his bias is neutral going forward. He also maintained his U.S. soybean yield projection of 50.0 bu. per acre and again, his bias is neutral going forward.
The Senate today is expected to clear the $550 billion physical infrastructure measure. The vote is expected at 10:00 a.m. CT. The bill would then go to the House. Seventy senators appear poised to carry the bipartisan package to passage. The so-called human infrastructure plan would represents a massive redefinition and expansion of the U.S. government, if approved. It will take months for the House and Senate to negotiate the details. The Senate is expected to begin voting on the framework of the budget resolution today.
Treasury Secretary Janet Yellen on Monday urged Congress to pass a bipartisan resolution to raise the amount of money the U.S. government can borrow, saying failing to increase the debt ceiling would “cause irreparable harm” to the economy. Republican lawmakers, led by Senate Minority Leader Mitch McConnell (R-Ky.), have threatened to refuse to vote for raising the debt ceiling.
A bipartisan group of senators are urging USDA Secretary Tom Vilsack to deliver not only aid to contract hog growers but also top-up payments to hog producers that were announced in January under the Coronavirus Food Assistance Program.
Cash cattle traded at an average price of $123.83 last week, more than a $2 gain from the week prior, with northern locations leading gains. Boxed beef prices continue their surge off the mid-July lows. Traders will keep an eye on movement for signs the nearly three-week rally is running out of steam.
Lean hog futures faced heavy pressure to start the week and the most active October contract settled its $3.00 limit lower on Monday. Consequently, daily trading limits expand to $4.50 today. Cash hog bids edged 9 cents lower nationally to start the week.
