First Thing Today Audio | August 24, 2021
Corn futures are up 1 to 3 cents and soybean futures are 12 to 13 cents higher, as futures continue to chip away at Friday’s big losses. Winter wheat futures are down 5 to 6 cents, while spring wheat is down 4 cents. The U.S. dollar index is just above unchanged. Crude oil futures are sharply higher.
Following are highlights from USDA’s crop progress and condition update for the week ended Aug. 22.
- Corn: 85% in dough, 41% dented, 4% mature, 60% “good” to “excellent” (G/E)
- Soybeans: 97% blooming, 88% setting pods, 3% dropping leaves, 56% G/E
- Spring wheat: 77% harvested
- Cotton: 97% squaring, 79% setting bolls, 14% bolls open, 71% G/E
Crop Consultant Dr. Michael Cordonnier maintained his U.S. corn yield estimate of 175.5 bu. per acre and his bias is neutral to lower going forward. Cordonnier also maintained his soybean yield estimate of 50 bu. per acre and his bias is neutral to slightly lower going forward.
The National Oceanic and Atmospheric Association recently upped the odds for a second consecutive La Nina for the South American summer to 70%. That pattern typically results in below-normal rainfall for southern Brazil and northern Argentina, and both regions are still dealing with one of their driest periods in 70 years.
The House exited shortly after midnight ET without any deal in place to advance the fiscal blueprint vital to passing President Joe Biden’s legislative agenda. At a caucus meeting Monday evening, House Speaker Nancy Pelosi (D-Calif.) and House Majority Leader Steny Hoyer (D-Md.) made a plea that the party shouldn’t “squander” its majority with intraparty bickering.
Compliance costs remain elevated for the Renewable Fuel Standard (RFS) and a group of Senate Republicans contend rising Renewable Identification Numbers (RINs) prices are a factor in rising gasoline prices. In a letter to EPA Administrator Michael Regan, the lawmakers said RIN prices surpassed $2 for the first time since the RFS was established.
Live and feeder cattle futures posted bullish breakouts to start the week, with the former finishing just shy of their limit higher. Choice and Select boxed beef values climbed $2.97 and 87 cents, respectively, on Monday.
Lean hog futures saw two-sided trade to start the week, with strong gains in the cattle complex supplying spillover support at times. Yesterday’s Cold Storage Report was mildly encouraging, showing a marginal 256,000-MT dip in frozen pork stocks during July vs. the usual increase of 23.6 million lbs. National average cash hog bids dropped $3.72 to start the week.
