Corn futures are 3 to 5 cents lower amid active harvest progress and some light profit-taking, but the market’s short-term uptrend remains intact. Soybean futures are down a penny or two, with futures dropping to a new six-month low overnight. Winter wheat futures have fallen 10 to 16 cents, with the HRW wheat market leading the decline. Spring wheat futures are 6 to 8 cents lower. The greenback is firmer today, and crude oil futures have shot to another seven-year high.
Following are highlights from USDA’s crop progress and condition update for the week ended Oct. 3.
- Corn: 88% mature, 29% harvested, 59% “good” to “excellent” (G/E)
- Soybeans: 86% dropping leaves, 34% harvested, 58% G/E
- Cotton: 70% bolls open, 13% harvested, 62% G/E
- Winter wheat: 47% planted, 19% emerged
Crop Consultant Dr. Michael Cordonnier maintained his U.S. corn yield estimate of 175.0 bu. per acre and his bias is neutral to slightly lower going forward. He also made no change to his U.S. soybean yield estimate of 50.3 bu. per acre and his bias is neutral going forward.
World Weather Inc. reports a “significant round of precipitation is likely” for the Northern Plains Oct. 10-12, which is expected to boost soil moisture. The weather watcher reports rain and snow are expected, with most of the snow expected for Montana and possibly the western Dakotas.
Another Chinese developer has fallen into crisis. Fantasia Holdings Group failed to repay a maturing bond, adding to the strains of the nation’s heavily leveraged property firms following industry giant China Evergrande’s debt woes.
President Joe Biden warned that the U.S. government is at risk of breaching the legal limit on its debt in two weeks, blaming Senate Republican Leader Mitch McConnell (R-Ky.) for what he described as a “meteor” headed for the economy. Biden demanded that Republicans stop blocking Democratic efforts to suspend the debt ceiling.
Growth Energy is requesting the U.S. Supreme Court to review a decision by the DC Circuit Court of Appeals that vacated EPA’s approval of selling E15 fuel year-round, arguing that the decision is at odds with the statutory interpretation of the law that has been established by the court and the action will stymie expansion of higher-ethanol fuel blends in the future.
Cattle futures posted strong gains to kick off the week, with the October live cattle contract getting a boost from its discount to the cash market. The contract ended Monday nearly in line with last week’s average cash cattle price of $122.56, which was down $1.08 from the week prior.
The pork cutout value fell 99 cents to start the week, with losses for loins, butts and picnics more than offsetting gains for other cuts. Movement was also light. Monday’s futures pullback was likely corrective in a nature and a test of the summer highs is still very much a possibility.