Signup for CFAP 2 for Contract Producers and Specialty Crop Growers Now Open
The U.S. Department of Agriculture (USDA) is updating the Coronavirus Food Assistance Program 2 (CFAP 2) for contract producers of eligible livestock and poultry and producers of specialty crops and other sales-based commodities. Contract producers of broilers, pullets, layers, poultry eggs, turkeys, hogs, and pigs may be eligible for assistance. CFAP 2, which assists producers who faced market disruptions in 2020 due to COVID-19, is part of USDA’s broader Pandemic Assistance for Producers initiative. Signup is open now through October 12 for all eligible producers to apply for or modify applications for CFAP 2.

Cattle
Cattle futures are looking toppy after surging to new highs last week in reaction to a bullish cattle on feed report. The market reversed course and retraced those gains quickly. October set a new contract high of $132.85, which could prove to be tough resistance. Support should be found between $126 and $1278, with additional support at $124. Cash trade has been slow as retailers have met their needs for the Labor Day weekend.

Cotton
December cotton futures have backed away from their recent contract high of 96.71 cents and are consolidating between support at 92 cents and resistance at 95 cents. 70% of the U.S. crop is rated good-excellent condition by the USDA, these are the highest crop ratings for this week in over 15 years.  The cooler summer has the crop lagging in maturity, though. That was potentially good news for farmers in the path of Hurricane Ida, where the lack of open bolls could minimize damage. Weekly export sales were disappointing at only 105,200 bales for 21-22 delivery and 23,800 bales for 22-23 delivery.

Rice
Harvest pressure is having an impact on rice futures as harvest kicks off throughout the Mid-South. Nationwide, the crop is 19% harvested, in Arkansas, farmers have 6% of the crop in the bins. November futures have so far found support between $13.20 and $13.30, but additional support will be found at $13 if that fails to hold. In the latest rankings, 77% of the crop left to harvest was rated good to excellent, but that doesn’t include damage done by Hurricane Ida. Exports were uninspiring this week at a net 49,500 metric tons, down significantly from recent weeks. Shipments were only 38,600 metric tons.

Soybeans
Soybean futures remain under pressure as harvest approaches. 56% of the crop is in good to excellent condition. The forecast calls for a drier pattern for the next two weeks across much of the Midwest and Delta. That will be most welcome, especially in the Delta in the wake of Hurricane Ida. Weekly export sales were supportive at 80.9 million bushels. Technically, the November contract continues to trend lower, but could find support around $12.40.