Wheat Rises for Third Straight Session on Weaker Dollar
Wheat for December delivery rose 1.3% to $5.32 1/4 a bushel on the Chicago Board of Trade on Friday as the U.S. dollar weakened - causing wheat to rise for the third day in a row on prospects of more foreign purchases of U.S. wheat. Soybeans for November delivery rose 0.3% to $9.34 a bushel. Corn for December delivery fell 1% to $3.91 a bushel.
Rising wheat prices in South America are allowing U.S. wheat prices to be more competitive in the market. Friday's close is the highest wheat has traded at since late June. Drought in Russia and Argentina are driving prices higher, said Charlie Sernatinger of ED&F Man Capital. "Chicago looks like it is overdone here, but that does not mean the market has to break," Sernatinger said.
Soybean Exports Stay Strong, Wheat and Corn Falter -- Market Talk
09:10 ET - Export sales of soybeans remained strong this week -- totaling 1.7 million metric tons, owed mostly to the 850,500 tons sold to China for the week ending Oct. 10, the USDA says. Meanwhile, wheat sales only totaled 395,100 tons and corn totaled only 368,600 tons. Both of these totals fell into the low end of predictions provided by analysts to the Wall Street Journal, and are likely bearish for futures trading on the CBOT. Also notable is the lack of new Chinese purchases, as China has recently come into focus as a potential big customer of US wheat in addition to US soybeans. (email@example.com; @kirkmaltais)
Grain Prices Expected to Stay Volatile, Says Fitch -- Market Talk
09:22 ET - Grain prices are expected to remain volatile over the short-term, as weather continues to affect grain harvesting worldwide while political concerns stand to get in the way of the market's normal flow, says Fitch Solutions. "Weather conditions continue to deteriorate in different countries, supporting prices," the firm says--placing its 3-6 month outlook for grain commodities at neutral-bearish, while keeping a mixed view on prices in the next 12-24 months. In particular, the devastation from African swine fever on Asian hogs is expected to subdue soybean demand globally. (firstname.lastname@example.org; @kirkmaltais)
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Danone Investors Shouldn't Overreact to 3Q Results: Bernstein -- Market Talk
0909 GMT - Danone investors shouldn't overreact to the company's 3Q print, Bernstein analysts say. The food company met reported sales expectations, but its like-for-like sales growth disappointed, leading to a cut to the company's full-year guidance, Bernstein says. However, the brokerage says weather impact on the French company's waters division accounted for a large part of the disappointment, and notes that the new guidance still assumes a nice further speed-up of sales growth in 4Q. Given Danone shares' strong year-to-date performance, Bernstein isn't surprised by the stock's weakness today. At 0907 GMT, Danone was down 7.4% at EUR72.80. (email@example.com)
Livestock Futures Finish Friday Lower -- Market Talk
15:23 ET - Livestock futures on the CME fall to finish the week, with live cattle down 0.7% to $1.13625 per pound and lean hogs dropping 0.3% to 67.95 cents per pound. For the week though, cattle futures finish 1% higher, while hogs are 3.7% lower. For hogs, there's speculation China may be rebuilding its hog herd with an aim for increased production in early 2020. "This seems optimistic as African swine fever is still spreading through parts of the country," says Karl Setzer of AgriVisor. "China is importing hogs to try and build a herd though, which may help with the quicker rebound in production." (firstname.lastname@example.org; @kirkmaltais)