Good morning!
Grains firmer overnight... Corn and soybean futures rebounded from Tuesday’s losses, while wheat showed followthrough price strength during the overnight session. As of 6:30 a.m. CT, corn futures are trading mostly 2 cents higher, soybeans are 8 to 9 cents higher and wheat futures are 2 to 5 cents higher. The U.S. dollar index is around 250 points lower and front-month crude oil futures are more than $1.50 higher this morning.
Francine gathers strength as it nears landfall in Louisiana... Hurricane Francine continues to gain strength in the Gulf of Mexico slightly east of the Texas/Mexico border. The system will move northeast and likely make landfall in the south-central Louisiana coast this evening. The system will then move up through the Delta later Wednesday through Thursday as it gradually weakens over land before dissipating on Friday. World Weather Inc. says, “Overall, the damage from Hurricane Francine will be greatest near the Louisiana coast and the impact on agriculture should be relatively low. Some damage to sugarcane is quite likely, but cotton, sorghum, soybeans and other crops to the north will have a much lower impact. Some damage should be expected, but the losses may be low because of where the storm comes inland and the relatively small size of the storm and its expected quick weakening trend after reaching into southeastern Louisiana.” Double-crop soybeans and other late-maturing crops outside of the Louisiana coastline could benefit from remnant rains.
Presidential debate recap... The first and perhaps only presidential debate between Vice President Kamala Harris and former President Donald Trump in Philadelphia saw Harris set an assertive tone from the start, crossing the stage to shake Trump’s hand and introduce herself before the debate began. This power move seemed to catch Trump off guard and set the stage for Harris to control much of the conversation throughout the night. Harris employed her prosecutorial background, pressing Trump on various issues and fact-checking his statements in real-time. She frequently pivoted from attacking Trump to addressing voters directly about their concerns. Trump attempted to portray Harris as an out-of-touch liberal, while Harris sought to paint Trump as self-absorbed and lacking the temperament for the presidency. Harris’ aggressive offense strategy put Trump on the defensive for much of the debate. In a sign of how good Harris’ camp believed the night went for them, her campaign immediately demanded another debate. We’ll cover key issues addressed by the candidates in “Evening Report.”
Iowa Republican lawmakers to challenge controversial pipeline approval in court... A group of nearly 40 Iowa Republican lawmakers plans to sue both federal and state courts, claiming the Iowa Utilities Commission acted illegally and unconstitutionally in approving the $8 billion Summit Carbon Solutions pipeline. The project, which would connect 57 ethanol plants across several states, has faced opposition due to concerns over safety, property rights and eminent domain. The lawmakers, calling themselves the Republican Legislative Intervenors for Justice, are also exploring legislative actions to halt the pipeline and reform regulatory processes.
Vilsack to testify on food aid delivery failures impacting tribes and seniors... USDA Secretary Tom Vilsack and officials will testify before Congress on delays in food aid deliveries to tribal nations and seniors in eight states. Vilsack is expected to admit awareness of the issue since May, following a failed contract that led to the shortages.
China’s EV sales surge as overall vehicle sales remain weak... China’s vehicle sales dropped by 5.0% from a year earlier to 2.45 million units in August, according to data from the China Association of Automobile Manufacturers (CAAM). Sales of new energy vehicles surged 30.02% to 1.1 million units, accounting for 44.8% of total car sales in August.
UK economy remains stagnant in July... Britain’s economy showed no growth for a second straight month in July as manufacturing output dropped sharply, falling shy of forecasts for a 0.2% increase. On an annual basis, UK GDP rose 1.2%, higher than 0.7% growth in June but below forecasts of 1.4%.
Cash cattle below year-ago... Last week’s average cash cattle price of $181.18 was $1.10 below year-ago, the first time the cash market traded below the corresponding week from the previous year since spring 2021. Wholesale beef prices dropped 29 cents for Choice to $308.23 and $1.48 for Select to $297.01 on Tuesday. Choice beef prices remained modestly above last year.
Cash hog index, pork cutout weaken... The CME lean hog index is down another 18 cents to $85.56 as of Sept. 9. The pork cutout fell 92 cents on Tuesday to $94.80 as losses in hams, picnics and bellies more than offset gains in the other cuts. Movement jumped to 434.3 loads, signaling strong underlying retailer demand on the price weakness.
Overnight demand news... Japan purchased 8,370 MT of feed wheat. Egypt purchased 69,700 MT of optional origin sunflower oil and delayed the deadline for offers in its tender to purchase sugar.
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. Meat Price Spreads — ERS
· 2:00 p.m. Broiler Hatchery — NASS