Corn futures are 1 to 2 cents higher and soybeans are up 3 to 4 cents after holding to narrow ranges overnight. Winter wheat futures are up 5 cents, while spring wheat has climbed 7 to 8 cents. Crude oil futures have retreated from a seven-year high hit yesterday. The greenback is slightly lower.
Global food prices climbed 1.2% in September, according to the Food and Agriculture Organization of the United Nations’ (FAO’s) food price index. The index climbed 1.5 points from August to a reading of 130 points in September, which was up 32.1 points (32.8%) from September 2020 and a 10-year high.
As expected, GOP Senate Leader Mitch McConnell (R-Ky.) offered Democrats an alternate route to temporarily raise the debt limit until December. McConnell made the offer just over a week before a possible debt default.
The Congressional Budget Office (CBO) said Wednesday that it is “unclear” when it will complete a cost estimate of the entirety of the Democratic-backed social spending package approved by House committees.
U.S. Energy Secretary Jennifer Granholm said the Biden administration is considering tapping the Strategic Petroleum Reserve (SPR) in a bid to temper rising gasoline prices. However, she also commented that releasing SPR supplies was “very much marginal assistance overall given the scope of the problems.”
Coal supply shortages are pushing prices for the fuel to record highs. Reasons, according to the Wall Street Journal (WSJ): The post-pandemic boom to supply-chain strains and ambitious targets for reducing carbon emissions. And it is expected to last at least through the winter, raising fears in many countries of fuel shortfalls in the months ahead.
Russian President Vladimir Putin said Russia could export record volumes of natural gas to Europe this year. Quick certification of the controversial Nord Stream 2 natural gas pipeline would be one way to achieve this, according to Deputy Prime Minister Alexander Novak.
The Wall Street Journal reports the Biden administration’s emerging China strategy focuses at home and on allies. First, to rebuild the U.S.’s own domestic economic strength. Second, push U.S. companies to manufacture more at home. Third, work with allies on new trading arrangements that deal with those features of China’s system the World Trade Organization can’t constrain.
USDA data analyzed by the U.S. Meat Export Federation showed the U.S. exported more than $1 billion worth of beef during August, with strong Chinese buying powering the record surge. Cash cattle prices improved to $123 to $124 on Wednesday in the Iowa, Kansas and Nebraska market, with Texas seeing additional trade at $124. That’s steady to higher compared with action earlier this week but in line with last week.
October lean hog futures are still trading at nearly a $4.50 discount to the CME lean hog index, with contract expiration nearing. December lean hogs hold an even wider, $12-plus discount to the index.