Good morning!
Light followthrough selling in grains overnight... Corn, soybeans and wheat tried to work higher early in the overnight session, but buyer interest was limited and light pressure ensued. As of 6:30 a.m. CT, corn futures are trading fractionally to a penny lower, soybeans are 4 to 5 cents lower, winter wheat markets are 1 to 3 cents lower and spring wheat is 3 to 4 cents lower. Front-month crude oil futures are around $1.00 higher and the U.S. dollar index is about 100 points lower.
Markets open, gov’t offices closed... Grain and livestock markets will observe normal trading hours today. Government offices are closed for Veterans Day. Pro Farmer salutes all those who served in the military so we can enjoy the freedom of our great country.
Exchange: Argentine farmers could plant more soybeans... Argentine farmers could plant more fields with soybeans than initially estimated, the Buenos Aires Grain Exchange said, as rains put an end to a drought that affected large parts of key growing regions. The exchange said soybean planted area could extend beyond the 17.1 million hectares it initially forecast. Rainfall arrived too late for fields originally intended for some crops, such as early corn in the north part of Argentina’s agricultural core and sunflower crop in western areas, the exchange said, causing them to be re-destined for soybeans.
China’s biggest lender hit by ransomware attack... The Industrial and Commercial Bank of China’s (ICBC) U.S. arm was hit by a ransomware attack that disrupted trades in the U.S. Treasury market on Thursday. ICBC Financial Services, the U.S. unit of China’s largest commercial lender by assets, said it was investigating the attack that disrupted some of its systems, and making progress toward recovering from it. China’s foreign ministry said the lender is striving to minimize risk impact and losses after the attack.
Yellen meets He... Treasury Secretary Janet Yellen is meeting with Chinese Vice Premier He Lifeng, and the two nations are experiencing an economic role reversal. The U.S. economy has strengthened this year, driven by strong consumer spending and government subsidies for specific industries, defying predictions of a recession. In contrast, China is grappling with a property market downturn that has had a negative impact on its overall economy. Observers say these shifting economic fortunes are likely to influence the discussions between Yellen and He this week, as well as the upcoming meeting between presidents Joe Biden and Xi Jinping next week. The changing dynamics highlight the evolving nature of the economic relationship between the two countries and could have implications for future economic and trade policies.
Adviser: China can raise budget debt ratio... China can raise its budget deficit ratio next year to support the economic recovery because there is still space for the central government to issue more debt, Wang Yiming, a policy adviser to the central bank, said. “In the short term, we need to increase the intensity of fiscal policy,” Wang, a member of the Monetary Policy Committee of the People’s Bank of China (PBOC), said at the Caixin Summit in Beijing. “The central government’s leverage ratio is relatively low and there is still a lot of room.” A higher budget deficit next year would help drive the country’s economic recovery, he said.
British stagnation in Q3... In the third quarter, the British economy experienced stagnation, with no significant growth compared to a 0.2% expansion in the previous three months (April to June). This lackluster performance was attributed to several factors: high borrowing costs that deterred investment, resulting in a 4.2% decline in investment, and the burden of high living costs, which led to a 0.4% reduction in consumer spending. Despite these challenges, the UK managed to avoid slipping into a recession, due to an improvement in its trade balance. Looking ahead, the Bank of England has a bleak outlook, expecting zero growth in 2024, which suggests the economic challenges may persist.
Update on PARP... The Pandemic Assistance Revenue Program (PARP) was the catch-all program for revenue losses caused by the pandemic. A USDA official informs: “Unfortunately, the program is overprescribed, with more applications than funds available. We are trying to glean all Consolidated Appropriations Act funds across the department before finalizing payments. Our goal and hope is to issue those payments before the end of the continuing resolution” on Nov. 17.
Hong Kong finds ASF outbreak... Hong Kong authorities ordered the culling of around 5,600 pigs in a herd after the African swine fever (ASF) virus was discovered at a local pig farm. The licensed pig farm at Lau Fau Shan, rural Yuen Long area near the mainland China border, tested positive for ASF.
U.S. to reopen market to Paraguay beef imports... The U.S. will allow imports of Paraguayan beef next month after 25 years as regulators concluded an extensive review. The U.S. Embassy in Paraguay said new regulations make Paraguay one of 18 countries permitted to export beef products to the United States, effective Dec. 14.
Cash cattle weaken amid futures selloff... The sharp plunge in cattle futures triggered increased cash cattle sales on Thursday, with prices $4 to $5 lower. While not all feedlots moved cattle, they will either need to bite the bullet and accept the sharply lower prices or carry supplies into next week.
Cash hog index rises again... The CME lean hog index is 18 cents higher to $76.87 (as of Nov. 8), marking the third straight daily gain. That’s the longest daily string of gains since late July, when the index was rising to its seasonal peak. December hog futures finished Thursday $5.42 below today’s cash quote.
Overnight demand news... Exporters reported no tenders or sales.
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
- No reports scheduled. Gov’t offices closed for Veterans Day.