First Thing Today: Senate Panel to Vote on Perdue Nomination Today
Firmer tone overnight... Corn and soybean futures are up 2 to 3 cents as these markets enjoyed light short-covering overnight. The soybean market remains technically oversold, according to the nine-day Relative Strength Index. Wheat futures are up 2 to 5 cents, with the HRS market leading gains. The U.S. dollar index and crude oil futures are both slightly higher.
Senate panel to vote on Perdue nomination today... The Senate Agriculture Committee will vote today on the nomination of former Georgia Governor Sonny Perdue for USDA Secretary. The timing will depend on the still-to-be announced Senate schedule. All Republicans are expected to support him, with just a few Democrats expected to vote against Perdue. Senate Agriculture Chairman Pat Roberts (R-Kan.) said he hopes to get a floor vote on Perdue before Congress breaks for its Easter recess at the end of next week.
Notice for NAFTA talks planned for week of April 3... The Trump administration hopes to notify Congress the week of April 3 of its intention to launch trade negotiations with Canada and Mexico, Democratic lawmakers said following a meeting with Trump trade officials. The 90-day notice, required under Trade Promotion Authority (TPA/fast-track), would pave the way for talks to begin as early as July. The Mexican government would like to conclude the talks in 2017, Commerce Secretary Wilbur Ross said, adding that he would not hold up the negotiations. But Rep. Bill Pascrell (D-N.J.), ranking member of the Subcommittee on Trade, said this timeline was not realistic. Get more details.
WTO sides with China in narrow win over EU's poultry quotas... A World Trade Organization (WTO) panel partially backed China’s challenge to the European Union's management of its quota system for certain poultry imports, lending support to China’s bid for greater access to the EU market.
Talks scheduled on Turkey's restrictions on Russian grain supplies... The economy ministries for Russia and Turkey plan to meet soon to discuss Turkey's restrictions on Russian grain supplies, says Russia's economy minister. Turkey has changed its import licenses to hike tariffs on Russian supplies, effectively cut off shipments of wheat, corn and sunflower from Russia, though the nation denies any official ban. The situation has weighed on Russian wheat prices, making them even more competitive on the global markets, says SovEcon. It expects the price decline to continue as Russia's record 2016 grain crop has lifted carryover supplies. The consultancy believes the disruption will be temporary, noting that Turkish flour millers will struggle to find wheat at the same quality and price elsewhere.
Early signals indicate cash prices likely to drop this week... Around a 1,000 head of cattle traded in Texas yesterday around $125.50, down from trade mostly around $130 the week prior but nearly $5 above where the April contract is trading. But traders point to recent sluggish boxed beef movement as a sign more softer cash trade is likely ahead.
Hogs oversold, but buyers remain scarce... Attitudes remain highly bearish in the lean hog market as traders look ahead to a Hogs & Pigs Report that's expected to reflect a build in supplies. Plus, cash hog prices continue to slip alongside pork prices, providing traders little incentive to be buyers in the market. However, the nine-day Relative Strength Index is signaling the market is technically oversold.
Overnight demand news... South Korea bought around 55,000 MT of soymeal from South America. Jordan made no purchase in its international tender to buy 100,000 MT of feed barley. The nation also issued a separate tender to buy 50,000 MT of hard milling wheat. Algeria purchased around 200,000 MT of durum wheat in a tender, with origins likely including the U.S. and Canada. Japan is seeking 120,000 MT of feed wheat and 200,000 MT of feed barley in a simultaneous buy and sell auction. The Philippines bought around 45,000 MT of feed wheat, likely from the European Union or Black Sea region.
