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Good morning farmland. Davis Michaelsen here with your morning update for Monday June 7th. From Pro Farmer’s First Thing Today, these are some of the stories we’ll be watching this morning:
Grain and soybean futures climbed higher overnight on US weather concerns, particularly in the western and northern manufacturing areas. As of 6:30 p.m. CT, corn futures will trade 16 to 23 cents higher and soybeans 25 to 33 cents higher, with new crop contracts leading gains in both markets. Wheat futures are 11 to 16 cents higher, with HRS contracts driving gains. The US dollar index is virtually unchanged this morning.
The Northern Plains and areas of the American Midwest were excessively hot over the weekend. According to World Weather Inc., some rain will fall on the Northern Plains and the upper Midwest this week as the high pressure ridge shifts.
Talks on an infrastructure package continue after President Joe Biden rejected Senator Shelley Moore Capito’s (RW.Va.) counter-proposal to add about $ 50 billion to the GOP’s infrastructure package. Today the two meet again.
Customs officials processing grain exports from Argentina plan to hold a seven-hour strike Tuesday amid no progress in giving union workers priority access to Covid vaccinations.
Treasury Secretary Janet Yellen said Biden should push his $ 4 trillion spending plans even if they trigger inflation that lasts into next year and higher interest rates.
The other G7 countries in the US have agreed to support a minimum global corporate tax rate of at least 15%. The deal faces several hurdles in its implementation and next month the group of 7 countries will have to sell the concept to the finance ministers of the broader group of 20 nations meeting in Italy.
Chinese imports rose 51.1% year over year to $ 218.4 billion in May, the fastest growth since January 2011. Exports rose 27.9 percent last month to $ 263.9 billion, although that was a decrease from 32.3 percent in April.
China imported 790,000 tons of meat in May, 14.4% less than in April and 3.3% less than in May 2020.
With beef wholesale prices continuing to surge, traders will be on the lookout for signs that the rally has run out of steam. But with the strong demand from retailers, restaurants and the overseas markets, it will take a lot more than a day or two of price pressure to convince traders there is a spike.
The national direct cash hog price firmed 95 cents last Friday while the pork cut was $ 1.77 higher. Until the cash fundamentals signal the rally has exhausted, the downside in futures will be limited.