House Debate on BBB Begins Today | November 18, 2021

The CBO has completed its review of the BBB package, Biden will meet with his Canadian and Mexican counterparts today and UAW workers reach agreement with Deere and Co.

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Grain and soy complex futures built on Wednesday’s gains overnight. Wheat futures led gains, pushing above yesterday’s highs. Corn and soybean futures did not clear Tuesday’s highs overnight. As of 6:30 a.m. CT, wheat futures are trading 10 to 13 cents higher, corn is 1 to 2 cents higher and soybeans are mostly 4 to 5 cents higher. Front-month crude oil futures are around 65 cents lower and the U.S. dollar index is about 125 points lower this morning.

Debate on the $1.75 trillion Build Back Better (BBB)/social spending measure begins today. CBO released its analysis of the Education and Labor Committee title for BBB Thursday night. Along with the Energy and Commerce and Ways and Means titles, those are the focus of the BBB package, especially for Democratic moderates, who want to see if the CBO estimates match up with preliminary White House revenue and spending projections.

The Biden administration has asked some of the world’s largest oil consuming nations – including China, India, Japan and others – to consider releasing crude stockpiles in a coordinated effort to lower global energy prices and help curb surging inflation, Reuters reported.

Canadian Prime minister Justin Trudeau and Mexican President Andres Manuel Lopez Obrador join U.S. President Joe Biden at the White House today for three-way talks, informally known as the “Three Amigos” summit. Biden is expected to meet with both leaders separately before the summit begins.

The United Auto Workers Union on Wednesday voted to end a strike lasting over a month, approving a third contract offer from Deere and Co. that boosts wages and includes bonuses. The contract was approved by a margin of 61% to 39%.

China imported 200,000 MT of pork in October, which was down 4.8% September but 41.1% lower than last year. Through the first 10 months of this year, China imported 3.34 MMT of pork, a 7.7% drop from the same period last year.

Since posting a short-term top Nov. 4, Choice boxed beef has dropped $11.75, including yesterday’s $3.66 decline. But the sharp drop in beef prices attracted strong demand as packers moved 188 loads on the day.

The CME lean hog index is down a nickel today. While the index failed to build on the previous day’s mild advance, at least the wave of heavy pressure appears to have subsided. If there are additional signs the cash index is stabilizing, it would spur more thoughts of an early seasonal low.