First Thing Today Audio | July 21, 2021

Corn futures have pared early gains to trade narrowly mixed. Soybean futures opened the overnight session with gains but quickly reversed lower, with most contracts currently down 4 to 6 cents. HRW wheat futures are up 5 cents, SRW wheat is 2 to 3 cents higher and spring wheat futures are down 2 to 7 cents. The U.S. dollar index is slightly higher. Crude oil futures are posting solid gains, but the market has yet to retrace half of Monday’s dive.

The forecast remains concerning for the next 10 days to two weeks for Montana, much of the Dakotas, and the northwestern part of the Corn Belt, reports World Weather Inc., with favorable conditions elsewhere in the Midwest.

Agriculture and Agri-Food Canada (AAFC) in its WASDE-equivalent report raised its all-wheat yield forecast yesterday, with the 2021-22 crop now estimated at 31.428 MMT, which would be a 10.7% retreat from the 2020-21 season. “Downward pressure on yields is possible as drought persists in most of the Prairies,” AAFC wrote.

During a televised session with the Russian people last week, President Vladimir Putin said the government was considering other measures to curb rising food costs when pressed about increases. Rising food costs are unnerving some voters, particularly older Russians on small pensions.

Senators plan to cast their first votes on whether to consider the bipartisan infrastructure package. If the vote to move forward on the Senate floor fails to get the 60 votes needed, as expected, talks among a bipartisan group of 22 senators could continue.

The Federal Maritime Commission has ordered the world’s nine largest ocean carriers to undergo an audit. President Biden wants to clamp down on the rise in shipping costs, which have shot up during the pandemic.

So far, there have just been some light cash cattle sales in Iowa at $122, which compares to $125 action last week for the state. Boxed beef values dropped on Tuesday, with movement picking up.

August lean hog futures strengthened Tuesday, but the CME lean hog index also continues to climb. Consequently, the front month still holds a $7-plus discount to the CME lean hog index. On Tuesday, cash hog bids jumped a national average of $3.60 and the pork cutout value slipped $1.51.