Soybeans Perk Up on China Tariff Waiver Hopes
Soybeans for January delivery rose 0.6% to $8.89 1/2 a bushel on the Chicago Board of Trade on Friday after Chinese state media reported officials are looking to grant waivers to certain exports of U.S. soybeans and pork.
China's State Council has started the process to exempt some U.S.-imported soybeans and pork from punitive tariffs, the state-run Xinhua News Agency says. U.S. traders saw the news as positive, signalling a trade deal is close. Without a deal, new tariffs between the two sides are expected to go into effect on Dec. 15.
WASDE Seen to Show Lower Stockpiles -- Market Talk
14:43 ET - Analysts expect lower stockpiles of corn, wheat, and soybeans in the USDA's December WASDE report, due out Tuesday. According to analysts polled by the WSJ, corn inventories are expected to drop by over 50M bushels to just under 1.86B, while wheat inventories are expected to slim to 1B bushels from 1.014B last month. Soybeans, meanwhile, are expected to only fall by 3M bushels, to 472M. The biggest question mark is in corn, where analysts gave a wide range of predictions that inventories could drop by as much as 430M bushels--or show a slight rise. (email@example.com; @kirkmaltais)
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Managed Money Bolsters Short Position in Soybeans -- Market Talk
16:03 ET - Institutional investors are piling into short soybean positions, according to the CFTC's Commitment of Traders report. Managed money funds added 46,804 short contracts in soybeans, according to the CFTC--while closing 10,258 long contracts. However, the CFTC's report includes data up until Dec. 3--which encompasses a 4% drop in soybeans over the past two weeks but doesn't include the 2.1% rebound seen in the contract this week. Meanwhile, managed money was net short by roughly 4,500 contracts in corn in the week ending Dec. 3. (firstname.lastname@example.org; @kirkmaltais)
Canadian Wheat Production Rises from Last Year -- Market Talk
12:52 ET - Canadian wheat production is up from last year, according to data from the Canadian government. Wheat production is expected to rise to 32.34M metric tons in 2019, up from 32.2M tons in 2018. The news of this uptick is one factor driving down US wheat futures, although the increase isn't as much as previously expected, Dan Hueber of the Hueber Report says. Wheat futures on the CBOT are currently trading down 0.6%, as US traders have generally reacted to news of supply upticks by foreign competitors as bad news for US wheat that's failed to attract substantial interest from big export buyers like Egypt. (email@example.com; @kirkmaltais)
Mexico Purchases Large Batch of Corn -- Market Talk