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Good morning farmland. Davis Michaelsen here with your morning update for Thursday April 8th. From Pro Farmer’s First Thing Today, these are some of the stories we see this morning:
Corn futures are trading at a high level with profits of 2 cents. Soybeans are split, with the old crop one cent higher and the new crop 1 to 2 cents lower. More choppy measures are possible until Friday’s USDA balance sheet updates. Wheat futures are 8 to 11 cents higher, with HRW and HRS wheat futures making the biggest gains. The cold, dry weather in Europe is getting some attention, with the US Northern Plains and Canadian Prairies also being too dry. After April 20, the latter areas are more likely to rain. The greenback and crude oil futures are a little lower.
The Brazilian Grain Export Association ANEC expects Brazil to export 16.3 MMT soybeans in April, an increase of 15% over the previous year’s level. Wet weather and late crop development delayed harvest and shipping in February and March, but the country’s exports are now rolling.
The economic barometer of Purdue University / CME Group Ag rose 12 points in March to 177 points, marking the highest value for the barometer since its record high of 184 in October. Last month’s increase was almost entirely due to producers’ more optimistic view of the future.
According to the food price index of the Food and Agriculture Organization of the United Nations (FAO), global food prices rose by 2.1% from February to March, the tenth time in a row.
President Joe Biden stands ready to negotiate the proposed corporate tax rate hike that will help fund his $ 2.25 trillion infrastructure plan. Republicans have opposed the proposed spending level.
A USDA economist told Reuters in early March that the agency plans to change reporting on soybean oil consumption by biofuel manufacturers. Currently, USDA is reporting uses from the sector in a bulk category that includes demand from food manufacturers and animal feed manufacturers with a separate category for biodiesel use. USDA has announced that it will combine the use of biodiesel manufacturers and renewable diesel manufacturers in a separate category.
From March 29 to April 2, the average price of pork in the 16 provincial regions, as recorded by China’s Ag Ministry, fell 6.4%. That is 30.9% less than a year ago. Such updates have become more important given reports that African swine fever is disrupting China’s reconstruction efforts.
Live and feeder cattle futures saw profit-taking during the week, but both markets advanced towards the close and market gains in cash and products continued to give the bulls an advantage.
Tightening Pig Stocks and Ideas ASF will keep China as the main buyer of pork and help lift the weekday future. The market will know this through the weekly export sales report today. The support is also due to the continued strong pork movement despite the high price level.