Corn Drops as USDA Cuts Demand Forecasts
Corn for December delivery fell 3.6% to $3.80 1/4 a bushel on the Chicago Board of Trade on Thursday, with the USDA reducing its estimates for corn exports and use of the grain for ethanol. Wheat for December delivery lost 1.5% to $4.93 a bushel. Soybeans for November delivery edged 0.1% lower to $9.23 1/2 a bushel.
The USDA cut its forecast for corn exports, reflecting smaller supplies and U.S. price competitiveness. It also expects less demand for corn for ethanol, based on EIA data. The weak demand outlook was coupled with smaller-than-expected cuts to corn production and inventory forecasts, and a slight increase in the yield estimate.
The U.S.-China negotiations got started on a high level Thursday in Washington but didn't yield much in terms of news during the trading session. President Trump didn't say what his objective would be for the talks, tweeting "They want to make a deal, but do I?" The uncertainty was reflected in the movement of soybean futures, which spent most of the day flat, getting a short-term boost when the USDA cut its estimates for the oilseed more deeply than expected.
China Drives Soybean Exports, Corn Misses Trader Expectations -- Market Talk
08:52 ET - Soybean export sales totaled 2.092M metric tons for the week ending Oct. 3, the USDA says. This figure was largely driven by the 1.177M tons sold to China, but Spain was also a big buyer, purchasing 207,300 tons. Meanwhile, corn sales were a paltry 284,500 tons, well off of trader estimates of anywhere from 500,000 to 800,000 tons. Wheat sales totaled 521,900 tons, up 59% from last week and 38% from the prior 4-week average and falling in the higher-end of trader expectations. (email@example.com; @kirkmaltais)
STORIES OF INTEREST:
Food Makers Face Risks When Serving Up Supply Chain Data -- Market Talk
08:41 ET - Food manufacturers open themselves up to potential risks, both regulatory and in terms of public perception, when they publish disclosures about suppliers in tropical agriculture regions because advocacy groups comb through the data for campaigns related to the environment and human rights. But executives from some large companies say they welcome outside reviews. "There is precious little point of publishing lists for their own sake," Jonathan Horrell, global director of sustainability at Mondelez tells WSJ. "By making information public, it's an accountability tool." Mondelez, like other food makers, issues lists of the mills it taps for palm oil, an ingredient widely used in the food and consumer-products sectors. (firstname.lastname@example.org; @MicahMaidenberg)
Delivery & Service Fees Vary Widely for Same Food -- Market Talk
13:48 ET - Consumers who order the same food in the same markets face a $5 swing in service fees depending on what platform they use, according to research by restaurant management firm Kinetic12 that was commissioned by Grubhub. Average delivery fees between Uber's Uber Eats, DoorDash, Grubhub and Postmates were $1.89 to $3.45, the research from 250 restaurants in 50 areas found. Service costs ranged more, from zero to $5. Postmates users faced fees that were 30% of the food total, on average. It was 21% for DoorDash, 20% for Uber Eats, and 12% for Grubhub, the report shared with WSJ found. (email@example.com; @heatherhaddon)
Constellation Brands CFO Brings Leadership to Canopy Growth -- Market Talk
15:04 ET - Canopy Growth should benefit from the appointment of David Klein as chairman of the board of directors, according to a spokesman at Constellation Brands, where Klein is finance chief. Constellation Brands is a major shareholder in the cannabis company. Klein will remain CFO at the US spirits maker, according to the spokesman. "Canopy Growth and the company's board of directors will benefit from David's perspective and leadership as the company continues to evolve and the overall cannabis market continues to mature," the spokesman said. Klein replaces interim chairman John Bell, who had served in that role since July. (firstname.lastname@example.org; @Nina_Trentmann)
Hog Futures Finish Lower, Cattle Futures Perk Up -- Market Talk
15:39 ET - Lean hog futures end at 68.475 cents per pound, down 1.4% for the day. Meanwhile, live cattle futures gain 0.2% to $1.11425 per pound. Cattle futures have now risen 11.6% in the past month, in reaction to a fire in a Tyson Foods beef plant in Kansas knocking it offline as well as increased consumer beef demand. Meanwhile, the slip in hog futures is the first after two straight sessions of finishing higher. (email@example.com; @kirkmaltais)