Wheat Futures Give Up Gains as Global Supply View Shifts
Wheat for March delivery fell 1% to $5.56 1/4 a bushel on the Chicago Board of Trade on Thursday, giving back much of the week's gains. Corn for March delivery fell 0.4% to $3.79 1/4 a bushel. Soybeans for March delivery rose 0.1% to $8.81 a bushel.
Reports that both France and Russia lowered their wheat prices had traders rethinking their assumption that global supplies of the grain were tightening. On top of that, other wheat-growing regions are showing signs of hefty harvests ahead. "Up in Canada, they, like us, have experienced zero winterkill, and with higher area planted, the trade is talking about a big harvest this year," said Charlie Sernatinger of ED&F Man Capital.
Kellogg Lowers Expectations for 2020 -- Update
Kellogg Co. provided a sober outlook for profit and sales this year, as the food maker invests more in snacks and works to rejuvenate struggling cereal brands.
The company on Thursday forecast a 1% to 2% increase in comparable sales for 2020, short of analyst expectations, and said its earnings per share could fall as much as 4% this year. Kellogg said the sale of its Keebler cookies and other brands to Ferrero Group last July continues to weigh on profit more than analysts realized.
Kellogg's revenue fell 2.8% to $3.22 billion, primarily owing to the sale of its Keebler cookies and other brands last year, which topped analyst estimates.
Food-Price Growth Slowed in January as Meat Prices Fell
International food prices rose to their highest level in five years in January, but the pace of growth slowed as meat prices fell for the first time in a year, the Food and Agriculture Organization of the United Nations said Thursday.
The FAO's overall food-price index rose 0.7% in January from December, hitting its highest level since December 2014. Prices had increased by more than 2% in the final two months of 2019.
STORIES OF INTEREST:
Corteva To Drop Controversial Farm Chemical -- Market Talk
14:26 ET - Pesticide manufacturer Corteva plans this year to halt production of chlorpyrifos, a controversial insecticide that the EPA five years ago proposed to ban before that decision was reversed by the Trump administration. The product has been linked to developmental problems in children and still faces a state-level ban in California plus the prospect of more in other states, and the EU has also banned it. Corteva, one of the chemical's main manufacturers, calls the move a business decision due to declining demand over the past two decades. The move was earlier reported by Reuters. Corteva falls 0.8%. (email@example.com; @jacobbunge)
Canadian Antitrust Officials Probe Farm Giants
Canadian antitrust authorities are investigating agricultural companies including Bayer AG, Corteva Inc. and BASF SE, over allegations the companies sought to block a tech startup that aims to shift North American farmers' purchasing online.
Canada's Competition Bureau plans to seek records and communications from the crop-seed and chemical makers, as well as from farm-supply wholesalers like Cargill Inc. and Univar Solutions Inc., according to documents detailing the investigation that were filed Jan. 30 in Canadian federal court.
Hain Looks To Latch On To Spicy Food Trend -- Market Talk
1604 ET - Hain Celestial tries to tether its Sensible Portions business, which offers crackers, chips and other snacks, to consumer interest in spicy foods, with CEO Mark Schiller telling analysts the brand recently launched Screamin' Hot Veggie Straws. "If you look at the salty snack category, a very significant percentage of volume is done in hot [products], or the Flamin' Hot kind of [products] that some of our competitors have in the more mainstream offerings," he says on a call about quarterly results. Consumer demand for hot sauces and hotter foods has grown in recent years, as younger eaters have experimented with new flavors and as immigrant populations have grown in the US. Hain shares rise about 10% after the company beats on sales and adjusted profit. (firstname.lastname@example.org; @MicahMaidenberg)
Cattle Futures Ride Higher With Hogs Limit Up -- Market Talk
1539 ET - Lean hog futures rose by their daily 3 cent limit, ending up 4.9% at 64.875 cents per pound. Hog futures hit their limit in early trade and did not budge -- leaving hogs with extended limit trading of 4.5 cents per pound on Friday. The hog contract rose in reaction to Tyson Foods' CEO Noel White saying that pork exports were up 600% in the first quarter over the same time last year, due to increased Chinese interest. Meanwhile, live cattle futures rode the momentum of the hogs contract up, closing up 0.5% at $1.1975 per pound. (email@example.com; @kirkmaltais)