TOP STORIES:
Soybean Futures Fall as China Optimism Fades
Soybeans for July delivery fell 1.4% to $8.35 a bushel on the Chicago Board of Trade on Thursday, with traders reacting to a lack of big U.S. grain export sales to China.
Grains traders were disappointed that the USDA hadn't confirmed any new large purchases of U.S. soybeans by China this week. No such notices have been issued since last Thursday, crimping trader optimism that Chinese demand would support the U.S. soybean market. Some market watchers wonder if the lack of purchases is a signal of China-U.S. tensions brewing ahead of China's biggest political gathering of the year this week.
Supportive US Growing Weather Sinks Grains -- Market Talk
14:34 ET - Corn and soybean futures on the CBOT are down as traders look toward weekend weather in the Farm Belt. Indications are that conditions will allow good progress for farmers finishing up corn planting and approaching the halfway point of their soybeans planting. "The 30 and 90 day forecasts indicate improved conditions for the US growing season which is applying pressure," says Karl Setzer of AgriVisor. Agricultural weather firm DTN forecasts that temperatures in the Midwest will be near normal over the weekend, with scattered showers across the area. (kirk.maltais@wsj.com; @kirkmaltais)
STORIES OF INTEREST:
U.S.-China Trade Deal Is Intact, Larry Kudlow Says
WASHINGTON -- White House National Economic Council Director Larry Kudlow said Thursday the phase-one trade deal that the U.S. and China negotiated last year was intact and there were no plans to renegotiate.
Speaking during an online question-and-answer session with the Washington Post, Mr. Kudlow said Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer had spoken recently by phone with Chinese Vice Premier Liu He, China's chief negotiator on the trade agreement.
Cattle Grazing Near Produce Fields Likely E.Coli Culprit -- Market Talk
16:03 ET - Cattle grazing near produce fields are most likely to blame for three E.coli outbreaks linked to leafy greens that sickened nearly 200 people last year, according to the FDA. In a report into its investigation of the outbreaks, the FDA says it's still unclear how romaine lettuce implicated in the outbreaks became contaminated, but that water, wind, animals or vehicles could all have played a role in transmitting fecal material from nearby grazing lands to produce fields. The report follows an action plan released by the agency in March outlining steps to try to curb outbreaks tied to leafy greens, which in recent years have sickened hundreds of people, led to multiple deaths and caused millions of dollars in losses for the food industry. (jesse.newman@wsj.com; @jessenewman13)
THE MARKETS:
China Has Allowed More US Facilities to Export Meat -- Market Talk
13:30 ET - China has updated its list of US facilities allowed to export meat to China- - with 499 beef, 470 poultry, 457 pork, 397 seafood, and 253 dairy producing facilities now certified to export goods to China, says the USDA and USTR. "As a result of these actions, more U.S. facilities are eligible to export U.S. food and agricultural products to China than ever before," the agency said Thursday. Livestock futures on the CME are up Thursday, with live cattle futures up 0.3% and hog futures up 2%. (kirk.maltais@wsj.com; @kirkmaltais)