Soybeans Rise on Renewed Chinese Trade Promise
Soybeans for November delivery rose 3.4% to $8.95 1/2 a bushel on the Chicago Board of Trade Thursday, with traders reacting to indications of progress in the U.S.-China relationship as well as the WASDE report cutting yields and production slightly. Corn for December delivery rose 2% to $3.67 1/4 a bushel. Wheat for December delivery rose 1.3% to $4.83 2/3 a bushel.
President Trump confirmed on Twitter Wednesday night that the U.S. will delay a tariff increase on $250 billion worth of Chinese goods from Oct. 1 to Oct. 15--good news for all grains, but particularly for soybeans. On Twitter, Trump characterized the delay as "a gesture of good will." The next day, Trump returned to Twitter to promise that Chinese buyers will make large purchases of U.S. agricultural products.
USDA Forecasts Crop Yields Above Analyst Expectations -- Market Talk
12:07 ET - Crop yield forecasts for corn and soybeans fell from previous estimates but exceeded analyst expectations, the USDA says in its WASDE report. Corn yields were pegged at 168.2 bushels per acre, while soybeans were pegged at 47.9 bpa. In last month's report, corn yield was placed at 169.5 bpa, while soybeans were placed at 48.5 bpa. The change in today's report was smaller than anticipated by analysts surveyed by the Wall Street Journal, who forecast corn yield at 166.7 bpa and soybeans at 47.2 bpa. Meanwhile, production of corn totaled 13.799 billion bushels and production of soybeans totaled 3.633 billion, both smaller decreases than predicted by analysts. (email@example.com; @kirkmaltais)
Cargill Sells Investment Unit to Management -- Market Talk
16:22 ET - Cargill strikes a deal to sell its CarVal Investors alternative investment unit to the business's management team, continuing a yearslong process by the agricultural conglomerate to streamline its sprawling operations and focus on its core food concerns. The sale of CarVal, founded in 1987 and managing about $10B in corporate securities, loan portfolios and other assets, follows the 2015 spinoff of Cargill's Black River Asset Management, and Cargill's exit from other nonfood businesses like steel processing and petroleum trading. In July, Cargill reported its annual profit fell 17% to the lowest level since 2016. Cargill expects the deal to close in the fourth quarter and will remain an investor in CarVal's funds. Terms weren't disclosed. (firstname.lastname@example.org; @jacobbunge
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Trade War Pressures Farm-Equipment Loans: Fitch -- Market Talk
14:22 ET - Increased US tariffs and the recent Chinese embargo on US agricultural goods are hurting equipment loan and lease asset-backed securities' collateral, adding to challenges such as declining commodity prices that have yet to rebound since 2014, Fitch Ratings says. Fitch's rated portfolio shows increased loan and lease delinquencies and annualized net losses as agricultural sales drop. With the Midwest flooding this year greasing the downturn in the agricultural sector, US farmers are taking the toll with reduced income, Fitch says. Recent federal aid packages aren't fully replacing the farmers lost income, either, Fitch says, and future bailouts aren't sustainable in a prolonged trade war. (email@example.com; @depsebastian)
Starbucks Names Three Directors, Boosts Board to 13 >SBUX
Starbucks on Thursday said it named three new directors, expanding the size of its board to 13 members from 10.
The Seattle coffee chain said the new directors include Richard Allison Jr., chief executive of Domino's Pizza; Andrew Campion, executive vice president and chief financial officer of Nike; and Isabel Ge Mahe, Apple vice president and managing director of Greater China.
Hogs Finish Day Limit Up, Cattle Inches Higher -- Market Talk
15:44 ET - Hog futures skyrocket today as a change in the sentiment among traders brings back buyers to the market en masse. The contract tops out at a close of 63.175 cent per pound, a 5% increase from yesterday's level amid new tweets from President Trump promising more Chinese buying of US agriculture. Meanwhile, cattle futures are continuing to charge back towards the $1 per pound level, with the price up 4.4% since the start of the week. (firstname.lastname@example.org; @kirkmaltais)