First Thing Today Audio | July 7, 2021

Futures work to rebound from yesterday’s losses overnight, China expects to increase domestic corn production and USDA Secretary Vilsack will visit Nebraska this week...

Pro Farmer
Pro Farmer
(Pro Farmer)

July corn futures are 8 cents higher, while deferred months are narrowly mixed after yesterday’s sharp to limit losses. Soybean futures are 28 to 38 cents higher after yesterday’s lower-than-expected crop condition ratings, taking back a decent chunk of yesterday’s sharp to limit losses. Today, daily trading limits expand to 60 cents for corn futures and $1.50 for soybean futures. Limits also expand to $45 for soybean meal and 550 points for soybean oil. Winter wheat futures are up 5 to 10 cents, with HRW wheat leading gains. Spring wheat futures are 9 to 11 cents higher. Crude oil futures are sharply higher and the U.S. dollar index is holding near unchanged.

Following are highlights from USDA’s crop progress and condition update for the week ended July 4.

  • Corn: 10% silking, 64% “good” to “excellent” (G/E)
  • Soybeans: 29% blooming, 3% setting pods, 59% G/E
  • Spring wheat: 69% headed, 16% G/E
  • Winter wheat: 45% harvested, 47% G/E
  • Cotton: 42% squaring, 11% setting bolls, 52% G/E

Brazil will likely export 7.64 MMT of soybeans during July, forecasts the association of grain exporters Anec. That would be roughly a 25% retreat from June.

Argentine farmers have sold 54.5% of this year’s 43.5 MMT soybean crop, as estimated by the Buenos Aires Grains Exchange.

The China-based ag consultancy JCI has called for a 6.2% rise in China’s corn production in 2021. The government think tank China National Grains & Oils Information Center is calling for a 4.9% increase.

Russia’s ag ministry reports preliminary data shows the country exported 47.8 MMT of grain during the 2020-21 marketing year that ended July 1, a 12.7% increase from last season.

On Friday, July 9, U.S. Agriculture Secretary Tom Vilsack will travel to Omaha, Nebraska, for a “major announcement.” More details are expected to follow.

Cash cattle trade last week took place at an average price of $123.89, down $1.58 from the week prior. But the currentness of marketings has improved thanks to the recent rebound in cash prices, with weights sliding at a time when they are usually on the rise.

Lean hog futures saw split trade yesterday, with nearbys ending solidly higher and deferred months moderately lower. The pork cutout value fell $1.58 on Tuesday, with movement improving from last week.