First Thing Today: Spring Wheat Surge Lifts Other Markets, Too

Weather-inspired spring wheat surge lifts other markets, too... Spring wheat is again leading the charge higher today, with most contracts posting gains in the low 20s. This has pulled winter wheat futures 7 to 8 cents higher. Soybeans are up a nickel and corn futures are around a penny higher as of 6:30 a.m. CT. The U.S. dollar index is again under pressure.

Export Sales Report out today... Traders expect USDA to report corn sales ranging from 450,000 MT to 850,000 MT, soybean sales between 300,000 MT and 700,000 MT, wheat sales of 350,000 MT to 550,000 MT, soymeal sales ranging from 50,000 MT to 200,000 MT and soyoil sales between 5,000 MT and 29,000 MT.

Wet spring likely stopped Canadian growers from planting intended wheat, canola acres... Soggy conditions this spring likely prevented farmers in Canada from seeding all their intended wheat acres, according to analysts surveyed by Reuters. Today they expect Statistics Canada to report around 22.7 million acres were seeded to wheat this year, down 481,700 acres from April intentions and below last year's 23.212 million acres. Canola planting intentions are likely to come in around 22.2 million acres, according to the survey, down slightly from April but still record-high.

Trump to meet with South Korea president... President Donald Trump will host South Korean President Moon Jae-In this morning. Their discussion is expected to center around trade issues (autos and steel) and North Korea. On trade, the key issues are the bilateral trade imbalance and market access barriers. On North Korea: The leaders will “coordinate on North Korea-related issues, including countering the growing North Korean nuclear and missile threats,” according to a statement.

Senate Ag Committee to vote on Giancarlo nomination to head CFTC… Senate Agriculture Committee today will vote on the nomination of Christopher Giancarlo to be chairman of the Commodity Futures Trading Commission (CFTC). He is expected to easily clear the panel, setting the stage for full Senate confirmation.

Farm bill battle begins as conservative group takes aim at House ag panel leader... On Wednesday, Heritage Action publicly blamed House Agriculture Committee Chairman Mike Conaway (R-Texas) for holding up the budget resolution process — and by extension, tax reform — over his refusal to accept significant mandatory cuts to agriculture and nutrition programs. Conaway responded by labeling the accusation absurd. "With the farm economy in one of the biggest slides since the Great Depression, the chairman has been advocating for a budget that won't exacerbate the conditions of our farmers and ranchers in rural America and that won't impede development of the next farm bill," said Rachel Millard, a spokeswoman for the committee. "That may not fit with Heritage Action's long-running campaign against America's farmers and ranchers, but it certainly isn't the reason we still don't have a budget.

Labor union leaders weigh in on NAFTA renegotiation... Labor union advocates on Wednesday urged U.S. trade officials to consider a series of measures aimed at promoting growth of U.S. jobs and wages. The Trump administration is fielding comments during 90-day period prior to renegotiation of the North American Free Trade Agreement. Union lobbyists demanded elimination of a NAFTA provision allowing long-haul Mexican trucks to operate in the U.S. The Teamsters are also contesting the provision in the courts, arguing that the trucks are a risk in the U.S. due to failure to meet safety and emission standards, among other issues.

Ongoing bribery scandal in Brazil impacting its economy... Brazil's attorney general has charged President Michel Temer with accepting around $150,000 in bribes from Joesley Batista, the former chairman of the Brazilian meatpacking company JBS. The Supreme Court has decided to send charges against Temer to Congress, where a two-thirds majority vote is needed to proceed to a trial in front of the Supreme Court. The fiasco along with other food safety scandals has slowed forward progress on legislation and is expected to limit Brazil's recovery from a historic recession. Today, Brazil's government lowered its growth forecast for 2017 to less than 0.5%.

Light buys at latest Chinese corn auction... China sold 149,129 MT of 2014 crop corn at its latest auction of state reserves for an average price of 1,335 yuan ($196.88) per metric ton. This represents just 12.7% of the more than 1.177 MMT of corn available at the auction.

India's cotton exports to fall notably from year-ago on appreciating rupee... India will likely export just 6 million bales of cotton for 2016-17, down 17% from the year prior, forecasts the Cotton Association of India. It pegs production at 33.63 million bales, down just 150,000 bales from last year. The big drop in exports can be attributed to a rising currency, which hurt the competitiveness of Indian cotton on the global market.

H&P report expected to confirm major industry expansion... USDA will likely report the U.S. hog herd stood at roughly 71.597 million head as of June 1, up 3.3% from year-ago levels, according to analysts surveyed by Reuters. They expect the Quarterly Hogs & Pigs Report to show hogs kept for breeding up 1.5% from year-ago and kept for marketing rising 3.5% from last year's level. We will have full details in "Evening Report" and online.

Beef movement picks up on price plunge... While boxed beef prices have dropped sharply this week, movement has picked up. Yesterday, 165 loads changed hands on the $4.48 (Choice) to $2.59 (Select) price decline. This along with still-high packer profit margins should protect against a major drop for the cash market. So far, there has been some light to moderate trade in Nebraska at $118, down $1 to $5 from week-ago, and in the western Corn Belt at $118 to $119.50, versus trade ranging from $119 to $124 the week prior. So far, just a few hundred head have changed hands in Texas and Kansas at similar price levels.

Gearing up for H&P Report... Traders will be focused on readying for today's Quarterly Hogs & Pigs Report, that is expected to show record inventory as of June 1. Meanwhile, the pork cutout value continues to push further above the $100-level, rising 58 cents on Wednesday to $102.48 per hundredweight. Movement was also decent considering elevated prices at 318.94 loads.

Overnight demand news... Japan received no offers in its tender to buy 120,000 MT feed-quality wheat or 200,000 MT of barley in its simultaneous buy and sell auction, so it rescheduled it for July 5.

Today's reports:

• 7:30 a.m., Weekly Export Sales -- FAS
• 7:30 a.m., Drought Monitor -- USDA/NWS
• 7:30 a.m., Principal Field Crop Area -- StatsCan
• 2:00 p.m., Agricultural Prices-- NASS
• 2:00 p.m., Egg Products -- NASS
• 2:00 p.m., Hogs and Pigs -- NASS