First Thing Today Audio | September 10, 2021
Corn futures are 1 to 3 cents higher as the market gears up for USDA’s September reports. Soybeans are up 1 to 4 cents. SRW wheat is mixed, HRW wheat is around a penny higher and HRS wheat futures are mostly down 2 to 3 cents. The U.S. dollar index is just below unchanged. Crude oil futures are posting solid gains.
USDA’s September Crop Production Report will feature the first objective yield surveys for corn and soybeans. Based on the average pre-report estimates from a Reuters survey, traders expect USDA’s crop pegs to increase from last month.
Archer-Daniels-Midland expects to resume export loadings at two Louisiana terminals by month’s end.
Argentine producers will likely bring in a 48.8 MMT soybean crop in 2021-22, forecasts the Rosario grains exchange. That’s a slight, 200,000 MT trim from the exchange’s previous forecast as it expects better returns for corn to shift some acres.
China lowered its estimates for corn use in feed and industrial consumption for corn in the 2020-21 marketing year by 2 MMT each, citing high prices. But despite the smaller usage estimates, China’s ag ministry raised its corn import projection by 4 MMT to 26 MMT based on strong imports of the grain from the United States.
China is selling oil from its strategic reserves to lower prices. This marks a major intervention from the world’s largest oil importer. The government is combating rising raw materials costs and indicated it could release more reserves to balance the market.
President Joe Biden held his second call with Chinese Leader Xi Jinping since becoming president to break an impasse in the Sino/U.S. relationship after previous top-level meetings were mostly contentious. The White House said the two leaders had a “broad, strategic discussion.”
Biden will require two-thirds of American workers to get vaccinated against Covid-19. This includes many private-sector employees, health care workers and federal contractors, as well as most federal workers, who could face disciplinary measures if they refuse.
Several lawmakers announced they would introduce legislation next week to direct the Biden administration to reinstate MCOOL requirements for beef products.
Boxed beef movement held at 132 loads on Thursday, though prices continue to slide. The recent uptick in movement has the market optimistic a boost in demand could help the product market put in a low.
The pork cutout value dropped $1.70 on Thursday, with hams falling more than $10 to lead the decline. Movement remained pretty solid, however. Cash hog bids dropped a national average of $3.29 on Thursday, dashing hopes the cash market was working on a low.