TOP STORIES:
Soybeans Climb on Covid Vaccine Hopes
Soybeans for July delivery rose 0.8% to $8.45 a bushel on the Chicago Board of Trade Monday, with traders reacting to news on progress in a possible vaccine for coronavirus with optimism about a U.S. economic recovery.
Biotech company Moderna Inc. provided a spark for markets across the board, including commodities like crude oil. Positive results from its early human tests of a possible coronavirus vaccine also created upside for grains futures trading on the CBOT Monday. "It is impossible to tell if this Moderna vaccine will be the one, but it is clear that the drug making companies are putting a majority of their resources in finding treatments and vaccines for the coronavirus," said Craig Turner of Daniels Trading.
Wheat for July delivery fell 0.7% to $4.97 a bushel.
Wheat futures on the CBOT closed Monday trading at their lowest level since October 2019. The chief factor pushing wheat prices down is the sheer amount of supply on the world export market, with quotas put in place due to the coronavirus pandemic not tightening the market as much as previously believed. "The market remains on the defensive and is having trouble dealing with the fact that global supplies are burdensome," said RJO Futures. In its latest WASDE report, the USDA said world inventories of wheat are expected to climb roughly 15 million metric tons in the 2020/21 marketing year, to a total of roughly 310 million tons.
STORIES OF INTEREST:
Corn Movement Fueled More By Weather Than Ethanol -- Market Talk
12:22 ET - Corn futures on the CBOT are being moved more by expectations for how supportive US spring weather has been for the formidable crop being planted this year instead of how slowly the ethanol industry may return to pre-coronavirus levels. "We feel at current prices there is some weather premium/crop risk priced in," says Marex Spectron. "The rally in crude and petroleum demand picking up slightly has some ethanol plants looking at starting back up, not something that moves the needle in our opinion," says the firm. WTI light crude oil futures are up 10% Monday, bringing them back to their highest levels since April 15. (kirk.maltais@wsj.com; @kirkmaltais)
Conagra Paying $7 Million in Bonuses to Its Frontline Workers
Conagra Brands Inc. said Monday it would pay $7 million in cash bonuses to employees who have helped the food manufacturer get products made and shipped amid the Covid-19 pandemic.
The Chicago-based company said eligible workers at each of its 50 production and distribution facilities in the U.S., Canada and Mexico will receive funds.
THE MARKETS:
Hog Futures Drop as China Aims to Rebuild Hog Herds -- Market Talk
15:06 ET - Hog futures on the CME close 0.4% lower to 57.65c/pound amid news Chinese hog producers are hoping to rebuild hog herds decimated by the spread of African swine fever. "Chinese groups have stepped forward to claim the country's hog production may be back to normal by 2021," Karl Setzer of AgriVisor says. "Large incentives to hog farmers to rebuild their herds is a primary cause of this, but so is weakened demand from the Covid-19 outbreak." However, Setzer notes, new cases of African swine fever are being reported in China, making a rebuild of hog herds difficult. Live cattle futures gain 1.8% at 98.725c. (kirk.maltais@wsj.com; @kirkmaltais)