Wheat Futures Rise as Traders Square Up Positions
Wheat for December delivery gained 1.1% to settle at $4.89 1/2 a bushel on the Chicago Board of Trade on Wednesday in what was viewed as a technical move. Corn for December delivery rose 0.9% to $3.71 1/4 a bushel. Soybeans for November delivery eased 0.6% lower to $8.88 3/4 a bushel.
U.S. wheat doesn't look to have a strong argument for rising any further for the rest of the year, said John Payne of Daniels Trading. "I think it's just short-covering," Mr. Payne said of Wednesday's uptick. "The speculators are just cleaning up their positions. There's no bullish driver there." Overseas demand isn't a factor, with U.S. prices far higher than foreign alternatives, he said.
Streak of Chinese Soybean Purchases Snaps -- Market Talk
14:12 ET - Three straight days of large US soybean export purchases by Chinese buyers came to an end today--indicating that the Chinese government is more interested in seeing how talks play out before making any more "good will" buys of US soybeans. "With the China trade team in Washington, we expect that they want to see how the meetings go before encouraging any additional purchases," says AgResource--which predicts China might re-enter the US export market for soybeans by next week if talks go well. (email@example.com; @kirkmaltais)
Stale Snack-Bar Sales Hurt General Mills -- 3rd Update
General Mills Inc. extended its sales slump after encountering poor demand for brands including Yoplait yogurt and Nature Valley granola bars.
The purveyor of classic packaged foods including Cheerios, Hamburger Helper and Betty Crocker cake mix has struggled to revive growth amid tougher competition from newer, trendier products and less costly store brands.
The company reported a quarterly profit of $520.6 million, compared with $392.3 million a year earlier. After adjustments, General Mills reported a profit of 79 cents a share, topping the 77 cents a share that analysts predicted.
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Iowa Ethanol Plant the Latest to Halt Production -- Market Talk
12:31 ET - Another ethanol plant calls it quits, at least for now, blaming Trump-administration energy policies. Siouxland Energy Cooperative, based in top US corn state Iowa, this week moved to idle its Sioux Center plant, blaming exemptions granted by the EPA to oil refineries, which Siouxland board president Kelly Nieuwenhuis said reduced ethanol demand. Siouxland's not among the biggest US ethanol plants, but it's the latest in a string of closures over the past year that the ethanol industry says could cost Farm Belt votes for President Trump next year. (firstname.lastname@example.org; @jacobbunge)
S&W Seed Shares Rise on 4Q Results
Shares of S&W Seed Co. (SANW) rose more than 5%, to $2.46, Wednesday after the company posted a narrower fourth-quarter loss as revenue rose.
The seed company reported a loss of $3.2 million, or 10 cents a share, compared with a loss of $4.3 million, or 18 cents a share, in the comparable quarter last year. On an adjusted basis, earnings were 50 cents a share.
Livestock Finishes Higher as Disease Tension Rises in Asia -- Market Talk
15:42 ET - Both hog futures and cattle futures end higher on the CME with October hogs up 1.3% to 62.925 cents per pound and December cattle rising 0.8% to $1.0615 per pound. For hogs, the main driver for the uptick is a second case of African swine fever being reported in South Korea-- along with unfounded cases rumored in Thailand. The increased flow of swine fever news seems to have sparked some interest in hogs again among traders, who are hoping that tomorrow's export sales report will show a large Chinese purchase of US pork exports. (email@example.com; @kirkmaltais)