Corn Drops on Coronavirus Concerns
Corn for March delivery fell 0.7% to $3.78 1/2 a bushel on the Chicago Board of Trade on Monday, with coronavirus intensifying over the weekend in China and affecting the export demand outlook for corn.
A report from Bloomberg published Monday that Chinese officials have asked for "flexibility" regarding the agreed-upon agricultural purchasing targets in light of coronavirus sent grains futures on the CBOT lower, with corn leading the way. Coronavirus has stagnated agricultural demand in China, with grains traders questioning what the disease will mean for meeting the 2020 target of roughly $36 billion for Chinese purchases of U.S. agriculture.
Soybean Grain Export Inspections Exceed Expectations -- Market Talk
11:27 ET - Soybean export inspections totaled 1.36 million metric tons, according to the USDA. This exceeds analyst expectations, says Terry Reilly of Futures International. Of that amount, 552,523 metric tons were inspected for export to China, which may be a good sign considering the speculation that coronavirus has sapped demand for US grains in China. (email@example.com; @kirkmaltais)
Brazil Soybean Harvest Advancing Slowly -- Market Talk
0753 ET - Brazilian farmers had finished harvesting work on 9% of the area planted with soybeans as of Jan. 30, according to agricultural consultancy AgRural. On the same date a year ago 19% of the area had been harvested, though this year's figure is in line with the five-year average. Work in Mato Grosso state, which produces more soybeans than any other Brazilian state, advanced to 28% finished as farmers harvested between downpours. Harvesting is just beginning in some states were irregular rains last year slowed planting and is expected to pick up quickly in the second half of February. The forecast is for heavy rains in Mato Grosso in the first week of February. (firstname.lastname@example.org)
STORIES OF INTEREST:
Saudis Weigh Large Oil Cuts in Response to Coronavirus, Prices Resume Decline
Saudi Arabia is pushing for a major short-term oil production cut as it seeks to respond to the impact of China's deadly coronavirus on crude demand, according to OPEC officials.
The health crisis is impacting faraway oil-exporting nations, as reduced refining demand hits the prices they can charge for crude, and their revenues.
USDA WASDE and DC Forum Become New Mileposts -- Market Talk
08:56 ET - With both the US-China phase one trade deal and the USMCA signed, grains traders are turning their focus for the next month towards what the USDA will say, first in this weeks WASDE report, then at its agricultural forum in Washington later this month. Both of these factors have an outsized effect in molding grains price discovery, says Karl Setzer of AgriVisor. Corn and wheat futures on the CBOT are moving lower in pre-market trade Monday. (email@example.com; @kirkmaltais)
USDA Confirms New Soybean Sale to Egypt -- Market Talk
09:20 ET - 130,000 metric tons of US soybeans have been sold to Egypt for delivery in the 2019/20 marketing year, the USDA confirmed Monday. Soybean futures on the CBOT inched up 0.1% in the pre-market. Traders will likely not respond much to this news today, being more interested in what China will buy related to the phase one trade deal. (Kirk.firstname.lastname@example.org; @kirkmaltais)
Livestock Futures Turn Corner on Hopes of Chinese Buying -- Market Talk
Both lean hog and live cattle futures on the CME rise, with lean hogs finishing 1.7% higher at 62.625 cents per pound and live cattle futures up 0.9% at $1.208 per pound. For hogs, the move higher comes as traders view low prices as an inflection point. Pork cutout prices have fallen, with cutouts like pork butt, ham, and belly all down anywhere from $8 to $16 per hundredweight versus this time last week. Trader expectations that China will soon come calling for additional pork and beef exports drove rising prices on Monday. (email@example.com; @kirkmaltais)