Corn, soybean and wheat futures posted two-sided trade in a quiet overnight session but are mostly weaker this morning. As of 6:30 a.m. CT, corn futures are steady to a penny lower, soybeans are around 2 cents lower and wheat futures are steady to 4 cents lower, led by winter wheat contracts. The U.S. dollar index is around 100 points lower this morning, while front-month crude oil futures are modestly higher.
Following are highlights from USDA’s crop progress and condition update for the week ended Oct. 24.
- Corn: 66% harvested (53% on average)
- Soybeans: 73% harvested (70%)
- Cotton: 91% bolls open, 35% harvested (41%)
- Winter wheat: 80% planted (80%), 55% emerged (59%), 46% “good” to “excellent”
The ag attache in Argentina projects the country’s 2021-22 corn crop at a record 54.5 MMT, 1.5 MMT greater than USDA’s October forecast on expectations planted acreage will be more than USDA has in its current balance sheet.
South American Crop Consultant Dr. Michael Cordonnier continues to project Brazil’s 2021-22 soybean crop at a record 144 MMT, though he has a neutral to higher bias as the crop is off to a better-than-average start. He kept his Brazilian corn crop estimate at 118 MMT, which would also be a record.
Supply-chain problems that have left containers piled up in warehouses and dozens of ships waiting offshore to be unloaded are starting to have broader economic ramifications. New economic indicators from the U.S. and Germany released Monday suggest that economic growth could slow due to the supply-chain bottlenecks and higher prices that have characterized the past few months.
China will take action to reduce waste, promote renewable fuels and reform its electricity network as part of its plan to bring carbon emissions to a peak before 2030, China’s cabinet said.
Boxed beef prices were weaker Monday morning, but they bounced back to finish higher. While we doubt the wholesale beef market is going to shoot sharply higher, recent price action suggests a low has been established
The pork cutout value dropped $3.69 on Monday as losses in hams, picnics, butts and loins more than offset firmer prices for bellies and ribs. The falling cutout value is keeping pressure on the cash hog market, despite strong packer cutting margins.