First Thing Today Audio | July 8 2021

Tropical storm Elsa is expected to weaken, Canadian wildfires disrupt rail transport and USTR Tai discusses ethanol policy with Mexican officials...

Pro Farmer
Pro Farmer
(Pro Farmer)

Corn futures are narrowly mixed following a relatively quiet overnight session. Soybeans have softened to trade 1 to 4 cents lower after two-sided action overnight. HRW and HRS wheat futures are 3 to 6 cents higher, while SRW wheat is steady to a penny higher. The U.S. dollar index and crude oil futures are both under pressure. Covid-19 deaths worldwide topped 4 million this week and the Delta virus is continuing to spread. The marketplace is once again starting to pay more attention to this matter.

Tropical Storm Elsa will weaken to a tropical depression as it moves over North Carolina and to the northeast today; the storm has brought significant rain and some flooding to the Southeast. Meanwhile, significant rain is expected for Missouri, southern Iowa, eastern Kansas and into Illinois Friday through Saturday, reports World Weather Inc., warning that some flooding is possible.

Brazil’s grain production should soar 27% to 333 MMT over the next decade, Brazil’s ag ministry said in a forecast released yesterday.

Global food prices fell 2.5% (3.2 points) during June, with the Food and Agriculture Organization of the United Nations’ food price index sliding to 124.6 points. But that’s still 33.9% above year-ago levels.

A severe wildfire in western Canada has disrupted rail services in and out of Canada’s port of Vancouver, resulting in rail backlogs and heavy port congestion.

As part of a sweeping executive order expected this week, the administration will push regulators to combat what it calls a pattern of consolidation and aggressive pricing that has made it onerously expensive for American companies to transport goods to market, according to the Wall Street Journal.

Discussions between U.S. Trade Representative Katherine Tai and top Mexican trade and agricultural officials included biofuels policies between the two countries. A recap of the session issued by the Office of the USTR noted the officials discussed the potential mutual benefits of aligning Mexico and the United States’ policy on ethanol gasoline blends.

The openings-to-hires ratio hit a record low amid acute labor shortages. The Labor Department said job openings rose at the end of May by 16,000, pushing the total to a new high of 9.2 million in records dating back to 2000.

Live cattle futures posted moderate losses yesterday, with feeders facing heavier pressure, despite ongoing pressure on corn. August feeder cattle are at an overly wide double-digit premium to the cash index, signaling a correction is warranted.

On Wednesday, nearby lean hog contracts ended under pressure, but deferred months were able to finish narrowly mixed. The pork cutout value rose yesterday but movement slowed. Cash hog bids climbed a national average of 68 cents yesterday.