First Thing Today Audio | September 24, 2021
Corn and soybean futures are a penny or two lower as a week of relatively subdued trade winds down. Wheat futures are paring early losses, with SRW wheat mixed, HRW wheat down 2 to 3 cents and spring wheat 1 to 2 cents lower. The U.S. dollar index is slightly lower, as are crude oil futures.
Argentine farmers started planting their 2021-22 corn crop early this month after welcome rains, with the Buenos Aires Grains Exchange reporting 8.5% of the expected crop had been planted.
Political tensions have upended Australian exports of some products like wine, barley, coal and beef to China, but Beijing has remained a strong buyer of Australian wheat, speaking to its need for the grain and focus on food security.
China’s state planner said today it will work to resolve power shortages that have disrupted production since the end of June, when new measures to curb emissions kicked in. The state planner focused on the country’s fertilizer sector, in particular, as a segment that has been particularly impacted.
In 2020, the U.S. saw a trade surplus in energy products for the first time since at least 1974, the Energy Information Administration (EIA) detailed in a Sept. 22 post. Overall, the 2020 U.S. energy trade surplus stood at $27 billion, EIA said, citing Census Bureau trade data.
Chinese regulators have told Evergrande to avoid a near-term default on dollar bonds. The developer had an $83.5-million coupon due Thursday (with a face value of $2.03 billion) and a 30-day grace period to make the payment. A missed payment would set the stage for what could be the largest-ever dollar bond default by a company in Asia.
Biofuels advocates have issued a joint statement regarding reports about the Biden administration’s plans to lower blending mandates under the Renewable Fuel Standard that said in part: “While a formal proposal has not been released, the expected standards would destroy a decade of progress on low-carbon biofuels and brazenly violate the promises that President Biden made to farmers.”
Germany is planning to establish a wild boar-free zone along its border with Poland in an attempt to contain its African swine fever outbreak. Within the zone, the wild boar population would be intensely hunted, with hopes of eradicating the population.
Another USDA update on the number of cattle on feed arrives today. Analysts surveyed by Reuters on average expect the report to show there were around 11.155 million head of cattle on feed as of Sept. 1, which would be a 2.1% year-over-year decline. Meanwhile, yesterday boxed beef values extended their month-long and nearly uninterrupted slide.
The pork cutout value slumped $2.63 on Thursday after a $4-plus surge at midweek gave the market hope prices may be working on an overdue seasonal move to the upside. Today, traders will put their finishing touches on positions leading up to USDA’s quarterly Hogs & Pigs Report which is expected to show a 1.7% year-over-year decline in the U.S. hog herd as of Sept. 1.
