Wheat Futures Rise After Egypt Pays Higher Price for Russian Wheat
Wheat for March delivery rose 0.5% to $5.52 3/4 a bushel on the Chicago Board of Trade on Wednesday, as traders reacted positively to Egypt paying a higher price for Russian wheat. Soybeans for March delivery gained 0.3% to $9.47 1/4 a bushel. Corn for March delivery fell 0.1% to $3.84 1/4 a bushel.
Egypt's grain-buying agency purchased 300,000 metric tons of Russian, Ukrainian and Romanian wheat Wednesday, at a price roughly $10 per ton higher than a previous tender in December. U.S. traders took this as a sign that wheat futures have room to move higher.
USDA Reports Sale of Over 200,000 Tons of Corn -- Market Talk
09:50 ET - Some 207,000 metric tons of corn were sold to unknown destinations for the 2019/20 marketing year, the USDA says. It remains to be seen if this will provide any spark for corn futures on the CBOT, especially with reports of China's suspension of plans to roll out standards requiring gasoline to be blending with 10% ethanol in 2020 helping drive corn down in overnight trading. However, even those reports are not making large dents in trading activity, says Doug Bergman of RCM Alternatives. "The market had always been skeptical that they would actually implement that policy," says Bergman, calling for futures to perk up Wednesday. "With the funds already short, the market now oversold, and the report on Friday, look for buyers to step into the corn here." (firstname.lastname@example.org; @kirkmaltais)
STORIES OF INTEREST:
McDonald's Expands Plant-Based Test in Canada -- Market Talk
0827 ET - McDonald's nearly doubles the scope of its plant-based sandwich test in Canada, planning to begin selling next week its PLT -- plant, lettuce, tomato -- at 52 restaurants in Ontario for 12 weeks, up from the 28 stores that first offered the sandwich starting last fall. McDonald's will continue to work with Beyond Meat, the plant-based food maker that supplied protein for the initial PLT launch; McDonald's announcement states that the PLT "is made with a Beyond Meat plant-based patty that has been crafted exclusively by McDonald's, for McDonald's." The chain says the expanded test will help assess appetite for the product more broadly. (email@example.com; @jacobbunge)
Kroger Doubles Down on Meatless Business -- Market Talk
0800 EST [Dow Jones] -- Kroger Co. is doubling down on meatless business. The nation's largest supermarket operator said it is starting a private-label product line that focuses on plant-based burger patties and grinds. The Cincinnati-based grocer said it will offer 50 new plant-based products under its store brand this year. Kroger started selling its own meatless deli slices, sausages and other items last fall, betting that consumer interest in meat alternatives will grow. Competitor Albertsons Companies Inc. also revamped its store-branded line of plant-based products in September. (firstname.lastname@example.org; @_jaewonkang)
Brazil Corn Demand Rising as Ethanol Production, Feedlot Use, Increase -- Market Talk
0712 ET - Demand for Brazil's corn production is increasing, and farmers are planting a larger area with the crop, as more cattle raisers make use of feedlots instead of pastures to feed their herds, according to Brazilian crop agency Conab. Demand for the grain from ethanol producers is also growing as more plants producing the fuel from corn have been built, the agency said. Exports are increasing as well, Conab said. Brazil's corn production has doubled in the past decade, but is still far from the quantities produced in the US and China, the world's biggest and second-biggest producers of the grain, according to the USDA. (email@example.com)
Livestock Futures Finish Slightly Lower -- Market Talk
15:34 ET - After starting the day higher, lean hog futures finished down 0.3% to 69.025 cents per pound. Agricultural traders are expecting that large purchases from China may begin after the deal is signed between the US and China on Jan 15. This would be beneficial to US pork, which has been bracing for China to re-embrace the US export market in full as a response to African swine fever destroying their hog population. Until then, futures are treading water. Meanwhile, live cattle futures are down 0.1% to $1.2635 per pound. (firstname.lastname@example.org; @kirkmaltais)