Wheat Falls as World Weather Improves
Wheat for July delivery fell 1.4% to $5.08 3/4 a bushel on the Chicago Board of Trade Friday, as traders closed long positions amid indications of improving weather in wheat-growing areas. Soybeans for July delivery fell 0.2% to $8.33 1/4 a bushel. Corn for July delivery rose 0.1% to $3.18 a bushel.
A rally in wheat futures overnight lost momentum as visions of tighter supply conditions around the world crumbled. "Rising temperatures and rains in the Corn Belt limit the bullish potential for wheat and corn," said AgriTel. An uptick in French wheat in good and excellent condition is also playing into trader sentiment, as is a virtual crop tour held in Kansas this week examining winter wheat crops - which showed some freeze damage but generally healthier crops than expected.
Brazilian Soybean Exports Causing 'Indigestion' For US Traders -- Market Talk
13:35 ET - US grain traders are nervous about US-China trade tensions possibly heating up over the weekend and throwing the Phase One trade deal into jeopardy. Also stoking trader nerves are indications that while China hasn't made any big purchases of US soybeans in the past week, they have been buying from Brazil. "No one seems to know if the slow purchase pace is related to US/China political wrangling or that China is being overwhelmed by the massive arrivals of Brazilian soybeans," says AgResource. "A record tonnage of Brazilian soybeans are afloat to China that is likely causing 'indigestion'." CBOT soybean futures are down 0.2% Friday. (email@example.com; @kirkmaltais)
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Fresh Del Monte Produce Opens New Plant in Japan
Fresh Del Monte Produce Inc. Friday said its subsidiary, Fresh Del Monte Japan Co. Ltd, officially began operations at a newly completed facility in Yokohama, Japan.
Construction on the $19 million facility began last year. The company said the fresh cut plant, which will focus on serving the Tokyo metropolitan area, has an annual production capacity of 10,000 tons of fruits and vegetables.
Bunge Loses Shareholder Vote on Exec Pay -- Market Talk
09:29 ET - Bunge Ltd.'s board of directors and management lost an advisory vote on executive compensation, the company says, after replacing in 2019 much of its senior management. Bunge's new CEO Greg Heckman, who took over in early 2019, received total compensation of $16.7M, including a $1M signing bonus and about $11.5M in stock and option awards. That topped the annual pay of his predecessor Soren Schroder, who exited after investor pressure brought new directors to Bunge's board. Bunge lost $1.3B in 2019, partly due to upheaval from the US-China trade war, versus a $267M profit in 2018. (firstname.lastname@example.org; @jacobbunge)
Rising Food Costs Push Mexican Inflation Higher in Early May
MEXICO CITY -- Mexican consumer prices increased more than expected in the first half of May, with food costs up sharply as the country entered its second full month of social-distancing measures and shutdowns to confront the spread of the new coronavirus.
The consumer price index rose 0.30% from the end of April and was up 2.83% from a year earlier, the National Statistics Institute said Friday. Core CPI, which excludes energy and agricultural produce, increased 0.24% in the first half of this month for an annual rise of 3.76%.
Livestock Falls as Cattle on Feed Report Shows Big Drops -- Market Talk
15:25 ET - Livestock futures finished trading lower, with August live-cattle futures down 0.9% at 97.325 cents a pound, while July lean-hog futures finished down 2.2% at 55.9c. The USDA issued its monthly Cattle on Feed report following the market's close, which showed a 22% decline in feedlot placements for the month of April versus last year, as well as a 24% decline in cattle marketed. This report comes as meatpackers restarted some operations in May, which has placed pressure on cutout prices for both beef and pork. (email@example.com; @kirkmaltais)