Corn, soybeans and wheat traded higher overnight on followthrough buying. As of 6:30 a.m. CT, corn futures are 1 to 2 cents higher, soybeans are 4 to 6 cents higher and wheat futures are 7 to 9 cents higher. Front-month crude oil futures topped $83.50 overnight, while the U.S. dollar index is nearly 400 points lower this morning.
Following are highlights from USDA’s crop progress and condition update for the week ended Oct. 17.
- Corn: 97% mature, 52% harvested (41% on average)
- Soybeans: 95% dropping leaves, 60% harvested (55%)
- Cotton: 86% bolls open, 28% harvested (34%)
- Winter wheat: 70% planted (71%), 44% emerged (47%)
Weather and crop conditions in Brazil continue to improve. As a result, South American Crop Consultant Dr. Michael Cordonnier increased his subjective crop ratings a point for the Brazilian soybean crop to a 6 out of 10. His Brazilian full-season corn crop rating is also a 6, unchanged from last week.
Midwest senators are pushing Ag Secretary Tom Vilsack to act on USDA’s pledge to deliver aid for biofuel producers, noting the agency said June 15 that there would be $700 million provided to biofuel producers under USDA’s Pandemic Assistance for Producers effort.
Treasury Secretary Janet Yellen said the debt limit deal enacted by Congress last week will allow the government to keep paying its bills through Dec. 3. In a letter to Capitol Hill leaders, Yellen said the deal “provides only a temporary reprieve” and urged lawmakers to take further action to ensure that the government can continue to borrow money.
Choice boxed beef prices slipped 15 cents, while Select was 81 cents lower on Monday. Movement slowed from the final four days last week. Traders are likely to remain cautious about pushing futures above last week’s highs without solid signs of a low in the wholesale market.
Given the rise in December lean hogs on Monday, the lead contract is now $8.13 below the cash index. While cutting margins are deep in the black and market-ready hog numbers are under year-ago, packers aren’t having to pay up to get needed supplies.