First Thing Today | July 24, 2024

Varied tone in grains overnight.

Pro Farmer's First Thing Today
Pro Farmer’s First Thing Today
(Pro Farmer)

Good morning!

Varied tone in grains overnight... Corn, soybeans and wheat traded on either side of unchanged during the overnight session. As of 6:30 a.m. CT, corn futures are trading steady to a penny higher, soybeans are 1 to 3 cents lower, SRW wheat is 1 to 2 cents higher, HRW wheat is fractionally to 2 cents lower and HRS wheat is 1 to 2 cents lower. The U.S. dollar index is marginally lower, while front-month crude oil futures are nearly $1.00 higher.

HRS tour Day 1 results... Scouts on the first day of the Wheat Quality Council’s annual HRS tour found record yield potential in southern and east-central North Dakota. Samples collected averaged 52.5 bu. per acre, up from 48.1 bu. on similar routes last year and the five-year average (excluding 2020 because the tour was canceled due to Covid) of 42.2 bu. per acre. While yield were strong, nearly all scouting groups noted some fields had been stricken by fusarium head blight, also known as scab.

Indonesia plans widespread use of palm-based B40 biodiesel next year... Indonesia is planning for widespread use of the palm-oil based B40 biodiesel in 2025, replacing the current B35 blend, the energy ministry said. The ministry said it had used B40 biodiesel, mixed with 40% palm oil, on a train for the first time earlier this week.

Thompson still wants a new farm bill this year... House Ag Committee Chairman Glenn “GT” Thompson (R-Pa.) is still attempting to move forward with passing a farm bill this year, despite significant challenges. Thompson on Tuesday expressed openness to “entertain” informal pre-conference negotiations with Senate Ag Committee leaders on the farm bill. This indicates a desire to make progress, even if it’s not through the traditional legislative process. Thompson has been critical of Senate Ag Committee Chair Debbie Stabenow’s (D-Mich.) refusal to release a full farm bill text. He stated, “I cannot reconcile nor negotiate a bipartisan 900-page bill with a partisan 90-page summary.” This highlights the ongoing tension between the House and Senate committees. Despite Thompson’s willingness to engage in discussions, there appears to be little movement in negotiations with Stabenow.

Democrats finalize plan for virtual roll call to nominate Harris... A panel of Democratic stalwarts will meet today to complete a rule change to allow Kamala Harris to accept her party’s nomination for president weeks in advance of the party’s convention in Chicago. The virtual roll call would take place the first week of August, ahead of the Democratic National Convention Aug. 19-22 in Chicago. Meanwhile, President Joe Biden will address the nation at 7:00 p.m. CT. He plans to discuss his decision to withdraw from the 2024 presidential race and will elaborate on what lies ahead for his administration and how he intends to “finish the job.”

U.S. foreign investment watchdog reports record penalties... The Committee on Foreign Investment in the U.S. (CFIUS) imposed more penalties in 2023 than in its entire 50-year history, reflecting heightened concern about China. The panel assessed four civil penalties last year, surpassing the two penalties issued since its inception in 1975. CFIUS, which reviews foreign investments in U.S. real estate and companies for national security issues, did not disclose the entities penalized. The committee, managed by the U.S. Treasury Department, previously issued penalties in 2018 and 2019.

Carbon emissions from shipping industry surge... The surge in carbon emissions from the shipping industry is partly due to vessels taking longer routes around South Africa to avoid Houthi militant attacks in the Red Sea. Ships emitted about 450 million tons of CO2 in the first half of 2024, a 6% increase from the previous year, according to Marine Benchmark. Container shipping rates have also risen since the Houthis began their attacks. Despite U.S. and European efforts, maritime hostilities continue, with June experiencing the highest number of attacks on commercial ships in 2024.

Key Bridge rebuild receives federal environmental approval... The approval to rebuild the Francis Scott Key Bridge means the new span will bypass extensive environmental analysis, speeding up its completion. The new bridge, classified as a “replacement bridge,” will have four lanes and is expected to be completed by October 2028. The rebuild will take place in the same location as the old bridge, avoiding significant community, natural or cultural impacts. The Maryland Transportation Authority announced the approval, with Maryland Secretary of Transportation Paul Wiedefeld calling it a “major milestone.” The Federal Highway Administration granted a “categorical exclusion,” allowing the project to proceed without an in-depth environmental study due to its replacement nature.

Euro zone business growth stalls in July... HCOB’ preliminary euro zone composite purchasing managers index compiled by S&P Global dropped to five-month low of 50.1 this month from 50.9 in June. The reading signaled a near-stagnation of euro zone business activity in the private sector as the bloc’s economic recovery continued to wane, with manufacturing weakness worsening and the services sector slowing. Business confidence dropped to a six-month low, leading firms to halt a string of hiring that began at the start of this year. The two largest euro area economies continued to underperform the wider region. Germany and France, the two largest euro zone economies, continued to underperform the broader region.

China aims to control dairy, beef output as weak sales hit prices... China plans to implement measures to help dairy and beef producers limit production to prevent prices from falling further, an ag ministry official said. Earlier this year, China issued regulations to reduce its breeding sow population. Prices of beef and dairy, along with pork and poultry are falling in China as shoppers, grappling with a slowing economy, scale back purchases. “The prices of beef and raw milk in the first half of the year fell by 12.1% and 12.5%, respectively, and beef cattle and dairy cow breeders are making losses,” said Wang Lejun, the ag ministry’s Chief Animal Husbandry Officer. “For beef and dairy cows, we want to guide farms to optimize and adjust the herd structure, moderately eliminate old and low-yielding cows, and better match production development with market demand,” he said.

Colorado ramps up H5N1 dairy testing... Colorado began requiring dairies to test milk supplies for the H5N1 virus every week, the state’s lead veterinarian told Reuters. The state’s new mandate aims to identify additional farms that could be infected and spread the disease to other dairies or poultry flocks. Colorado has confirmed infections in 47 dairy herds since the U.S. outbreak in dairy cows began in late March, with about 60% of its cases detected in the past month. A USDA epidemiological “strike team” arrived in Colorado this week to assess how the virus may be spreading among dairies.

Wholesale beef prices continue to slide... Wholesale beef prices dropped 23 cents for Choice to $313.21 and $1.67 for Select to $296.66 for Select on Tuesday, extending their seasonal pullback. However, movement remained strong at 165 loads, suggesting there’s still enough retailer demand under the market to keep prices from collapsing.

Cash hog index rises again, pork cutout drops... The CME lean hog index is up 28 cents to $90.80 as of July 22, the seventh straight daily gain, the longest string of gains since early April. The pork cutout dropped $1.02 on Wednesday as all cuts except ribs and bellies declined.

Overnight demand news... Jordan tendered to buy 120,000 MT of optional origin milling wheat.

See ‘Policy Updates’ for late-breaking morning news updates... For updates to items in “First Thing Today” or any late-breaking morning news stories, check “Policy Updates” on www.profarmer.com.

Today’s reports

· 9:30 a.m. Weekly Ethanol Production — EIA

· 11:00 a.m. Census of Agriculture: Watersheds — NASS

· 2:00 p.m. Broiler Hatchery — NASS