Headlines:
Farmers Regain Confidence in Economy, Survey Shows
The Ag Economy Barometer shows that farmers’ optimism improved in August, but remains below spring readings in May and June. In August, the barometer that reads farmer sentiment jumped up 12 points to a reading of 129 after falling to 117 in July. The shift in producer sentiment occurred primarily because producers’ perception of current conditions improved, according to Purdue University press release Tuesday. The Index of Current Conditions increased to a reading of 121 following a dip to 99 in July. The Index of Future Expectations also rose in August but the increase was modest, rising to 132 just 6 points above its July reading, the press release stated. “The shift in producer sentiment occurred against a backdrop of USDA announcing intentions to aid farmers impacted by importing countries’ imposition of tariffs on a multitude of U.S. ag products. Survey responses were gathered from agricultural producers in mid-August, after USDA outlined the assistance package in general terms, but prior to USDA’s August 27 announcement providing details regarding the way payments would be allocated among producers of affected commodities,” says Jim Mintert, director, Center for Commercial Agriculture Purdue University. Regarding the Trump administration’s relief package, the survey asked producers “To what degree does President Trump’s $12 billion relief plan for U.S. farmers relieve your concerns about the impact of tariffs on your farm’s income?” Choices provided to respondents were 1) Completely; 2) Somewhat; 3) Not at all; and 4) Uncertain. Right at 90% of the responses were either “Not at all” or “Somewhat.”
Former Republican Sen. Kyl to replace McCain, bolstering conservatives
The appointment brings a more conservative bent to the Senate given Kyle’s voting record and how it veers from that of McCain, a maverick who sometimes collaborated with Democrats on major legislation. Once he is formally installed in the Senate, Kyl’s first major vote is likely to be on the confirmation of Brett Kavanaugh to the U.S. Supreme Court. Kyl, now a lobbyist at the law firm Covington & Burling, already has been working behind the scenes to boost Kavanaugh’s prospects. He would provide more of a cushion to a Republican victory in the deeply divided Senate given that McCain had been too sick all year to cast votes in Washington. “Kyl tended to be more conservative than McCain throughout his tenure in the Senate,” Mark Jones, a political science professor at Rice University in Houston, said in a telephone interview. Kyl, 76, served with McCain in the Senate and rose to become Republican whip, the second-highest leadership post in his party’s Senate leadership, before retiring in 2013.
Summary:
Corn market traded lower overnight but prices managed to turn higher by the end of the regular session on the prospect of potential increased demand after news circulated of Argentina bringing back their export tax on corn. Soybean futures were mixed the day, trading lower ahead of the open then racing higher into the middle of the day only to selloff into the close finishing the day one tick above flat. It is expected that a precipitous forecast for this week will help develop the later planted bean crop. Wheat traded lower since there was no indication of Russia slowing down their exports from what has been a record pace and the USD seemingly returning to some strength.
