Corn Futures Rise as USDA Cuts Yield Projection
Corn for December delivery rose 0.5% to $3.77 1/4 a bushel on the Chicago Board of Trade on Friday, as the USDA caught traders off-guard with its reduction to yield estimates for the 2019/20 crop.
WASDE Surprise: The USDA now places the corn yield at 167 bushels per acre, down from an estimate of 168.4 bushels per acre last month. While analysts polled by The Wall Street Journal had predicted a cut to 167.3 bushels per acre, traders had thought the corn crop was in better shape. Corn futures fell 3.6% over the last four sessions, anticipating a disappointing WASDE report. After the report was released midday Friday, the prices surged to $3.83 3/4 a bushel before retreating to a more modest gain at the close.
More Surprises: The USDA also defied expectations by not moving its projections for soybean yields or production, and raising its figure for ending stocks. The USDA maintained last month's view that the yield per acre would be 46.9 bushels and that production would be 3.55 billion bushels, but it ramped up inventories by 15 million bushels, to 475 million bushels.
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Trump Says U.S. Hasn't Yet Agreed to Roll Back Tariffs as Part of China Trade Deal
WASHINGTON -- President Trump on Friday disputed China's assertion that the two countries had agreed to roll back tariffs as part of an interim trade accord, but he also said progress was being made toward resolving the long-running trade war.
"I haven't agreed to anything," Trump told reporters at the White House. "But we're getting along very well with China. They want to make a deal. Frankly, they want to make a deal a lot more than I do."
Crude Rally Fades on Chinese Oil Import Record
A nascent rally in oil prices fizzled on Friday after Chinese customs data showed the country imported more crude in October than ever before, despite the continuing trade friction with the U.S.
The disclosure eliminated some of the optimism traders have held that a detente in the trade war between the world's two largest economies would lift demand for oil. Those hopes had sent oil prices 5.5% higher to start the month.
Livestock Finish Week a Mixed Bag -- Market Talk
15:41 ET - Hog futures on the CME finish 0.3% lower at 64.125 cents per pound, while live cattle futures finish 0.2% higher at $1.19250 per pound. For cattle, managed money interest continues to buoy the contract, but it will likely start to correct in the next week or two. "The back-month contracts could start seeing some pressure since there is a huge premium on futures to the cash market, making producers consider increasing weights and higher production," says Peter McGinn of RJO Futures. (email@example.com; @kirkmaltais)