July corn up 1 ¾ at $3.1375
July beans up 3 ¼ at $8.3525
The DOW is up
USD is weaker
Crude oil up $2.20 at $14.54
Corn talk of perhaps 1 million cattle now backed up in the pipeline awaiting slaughter. Seeing similar complications in both the pork and poultry sectors. There is also talk that President Trump is going to mandate that processing plants stay open in order to avoid a food problem here in the U.S. Bears are pointing to the fact, regardless of the President’s move to keep the processing plants open, it’s highly doubtful corn for feed can meet the USDA forecast, which was estimated to be the highest in over a decade. At the same time, bears are pointing to mostly cooperative U.S. weather and a very quick start to the planting season. The trend for July corn is negative. Consistent action below 317.25 signals a drop towards 300. Sustained action over 328.75 is the minimum needed to improve the outlook.
Soybean traders continue to debate Chinese demand and how many U.S. new-crop acres will be planted in 2020? At the moment, bears remain in control as Chinese buying of U.S. supply is somewhat limited by cheaper offers out of South America. At the same time, the trade continues to hear talk of a few more U.S. acres flipping to soybeans. Not than any producers are making huge adjustments or changes in planting but rather small tweaks towards a few more soybean acres. This makes the trade worry that more acres than currently estimated by the USDA could be in play. The trend for July beans is negative. Stable action above 832.75 signals a return to higher trade. Closing over 856.25 confirms the turn. A failure at 832.75 signals new lows for the move.
The chairman of the Senate Ag Appropriations committee says there’s growing support for more agriculture aid the next coronavirus stimulus bill. North Dakota Senator John Hoeven told members of the North American Journalists Monday there’s support for increasing the USDA’s Commodity Credit Corporation to $50-Billion-dollars. Hoeven said he’s concerned about payments limits in the current package being too low but says there have to be limits to make sure the money gets to everyone. And, he reportedly said direct help to ethanol producers would be considered. House Ag Committee Chairman Collin Peterson told CNN on Monday that he is having talks with House and Senate Ag committee members to increase aid for farmers, to as much as $68-Billion-dollars in the Commodity Credit Corporation. (Source: Brownfield Ag)
President Trump plans to use the Defense Production Act to order meatpacking plants to remain open, declaring them critical infrastructure during the Covid-19 pandemic, according to a senior administration official. The government will provide additional protective gear for employees as well as guidance to minimize risk to workers who are especially vulnerable to the virus, such as encouraging older workers and those with other chronic health issues to stay home, the official said. The five-page order is designed to give companies such as Tyson Foods Inc and others legal cover with more liability protection in case employees catch the virus as a result of having to go to work. The world’s biggest meat companies, including Smithfield Foods Inc, Cargill Inc, JBS USA and Tyson Foods, have halted operations at about 20 slaughterhouses and processing plants in North America as workers fall ill, stoking global fears of a meat shortage.(Reuters)