Corn Rises as Weekly Ethanol Production Surprises
Corn for December delivery rose 1.3% to $3.71 a bushel on the Chicago Board of Trade on Wednesday, with an increase in weekly ethanol production in the U.S. sparking the rally. Soybeans for November delivery gained 0.8% to $8.65 3/4 a bushel. Wheat for December delivery fell 0.3% to $4.75 1/4 a bushel.
Weekly ethanol production increased by 15,000 barrels per day to 1.038 million barrels, the EIA said Wednesday - a surprise considering big producers like Poet LLC have slowed output after the federal government allowed several gasoline refiners to waive mixing the biofuel with their product.
Nestle Reviews Brazilian Suppliers Amid Amazon Fires
Nestle S.A. (NESN.EB) is reviewing its meat and cocoa purchases from Brazil amid heightened concerns over the fires in the Amazon rainforest.
"We are using a combination of tools, including supply chain mapping, certification, satellite monitoring and on-the-ground verification," a Nestle spokeswoman said.
Beef and soy crops are the main driver of deforestation and many of the ongoing fires, according to Amazon Watch, an environmental advocacy and research group.
STORIES OF INTEREST:
September WASDE May Bring Spark to Corn Futures -- Market Talk
11:57 ET - September's WASDE report due from the USDA may be the impetus needed to spark an uptick in corn futures, Marex Spectron says. According to the firm, a revision in the USDA's yield figures last month--which moved from 166 bushels per acre to 169.5 bushels--may ignite a corn market that has been depressed since the USDA moved up its yield forecast. Since Aug. 12, the date of the last WASDE, corn futures have fallen 12%. (firstname.lastname@example.org; @kirkmaltais)
Too Early to Tell If Dorian Will Affect Florida Citrus -- Market Talk
10:27 ET - Futures of frozen orange juice concentrate continue to rally on the Intercontinental Exchange in response to Tropical Storm Dorian, which is passing through the Caribbean isles and is expected to hit Puerto Rico as a Category 1 hurricane. OJ is up 1.7%, and has risen 6% since the start of the week. However, the Florida Department of Citrus says it's too early to sound the alarm on the storm. "It's still too early for us to tell where exactly it will hit in Florida," spokeswoman Shelley Rossetter says. The bulk of citrus production is in central and south Florida, Rossetter says, so if Dorian hits there, it would significantly hurt the crop. (email@example.com; @kirkmaltais)
Hain's Rice Deal Tied To Brexit Uncertainty -- Market Talk
08:20 ET - Hain Celestial's sale of its U.K.-focused Tilda rice business for $342M illustrates how the food maker is trying to reduce exposure to risks related to Brexit. Last year, Hain generated 38% of sales in the U.K., JPMorgan Chase analysts said in a note last week as they downgraded shares to underweight from neutral. Hain could face significant labor and tariff-related challenges, depending on how the Brexit situation plays out, the analysts said. "A hard Brexit, of course, would likely inflict even further pain," they added. (firstname.lastname@example.org; @MicahMaidenberg)
Hog Futures Rebound After Slow Start -- Market Talk
15:39 ET - Lean hog futures finish higher on the CME after starting lower this morning. October hog futures finished the session up 0.4%, at 63.5 cents per pound. This is after starting the session down 2.5%. Meanwhile, live cattle futures finish the day down 0.6%, ending the day at 99.2 cents per pound-- back below the $1 per pound level. Livestock traders are somewhat pessimistic on the October cattle contract, believing that the price should have posted a bigger rally in July. (email@example.com)