Corn, soybean and winter wheat futures extended Thursday’s corrective gains overnight, while HRS futures posted new contract highs for the sixth time in the last eight trading sessions. As of 6:30 a.m. CT, corn futures are 6 to 7 cents higher, soybeans are 8 to 9 cents higher, winter wheat contracts are mostly 9 to 12 cents higher and spring wheat is 6 to 7 cents higher. Front-month crude oil futures are trading at their highest level in seven years. The U.S. dollar index is near unchanged this morning.
Chinese corn prices have dropped around 15% from record levels in March and are virtually on par with wheat prices for the first time in a year. That has prompted some feed makers and livestock/poultry producers, especially in the key Shandong feeding region, to start using more corn in feed rations.
Traders expect the National Oilseed Processors Association (NOPA) to report soybean crush for September at 158.8 million bu., based on a Reuters survey, which would be down 2.4% from August and 4.0% under September 2020.
Port of Los Angeles Executive Director Gene Seroka says he doesn’t know how quickly the busiest U.S. gateway for container shipping can extend its hours, adding “we’re not going to create artificial deadlines” on a move the White House hopes will ease supply-chain strains.
Global supply chains could be plugged for up to two years as the world has become so reliant on China for manufacturing, Sultan bin Sulayem, chair of DP World, told the Financial Times.
Just over 10,000 workers at Deere & Company plants in the U.S. went on strike Thursday. Dissatisfaction over working conditions amid soaring demand for labor have also led to strikes at Kellogg and Mondelez International’s Nabisco among others.
There have been few rumblings in recent weeks surrounding the potential announcement of proposed levels for the Renewable Fuel Standard (RFS) program from EPA. Expectations in September were that the release of the proposed levels was imminent, however, no such announcement was made.
Chinese policymakers must walk a tightrope between supporting the economy amid weak domestic demand and any measures that could further stoke surging producer prices. But an official with the People’s Bank of China contends inflation is under control.
December live cattle closed above the 40-day moving average for the first time since Sept. 1 on Thursday. A close above last week’s high at $130.60 is needed to confirm an upside breakout. Boxed beef prices firmed on solid movement yesterday, the first hint that maybe wholesale prices have reached a value level for retailers.
The CME lean hog index will be quoted at $88.82 today, down another 91 cents and the lowest price since March 11. December lean hogs, which took over lead-month status with the October contract’s expiration on Thursday, closed yesterday at an $11.495 discount to the index.