Wheat Down On Expectations of Strong Planting Progress
Wheat for July delivery fell 1.1% to $5.15 1/4 a bushel on the Chicago Board of Trade Monday as grains traders expect the USDA to report strong gains in winter wheat crop development.
The USDA's planting progress report, released at 4 pm ET Monday, is expected to show big gains in wheat planting over the past week. "The trade will be looking for winter wheat to be 85% headed, against 68% on our last report, with harvest numbers expected around 4%, " said Charlie Sernatinger of ED&F Man Capital. The weather in the Midwest is expected to stay supportive for the planting and growth of crops across the board, putting pressure on the CBOT as a whole Monday.
Soybeans Expected to Show Strong Progress Towards Finish Line -- Market Talk
09:04 ET - The US soybean crop is expected to post a big jump in progress towards completing the planting of 83.5 million acres of soybeans in the US this year. Roughly 82% to 85% of that crop is expected to be shown as planted in the USDA's weekly crop progress report released after the market's close Monday, says Tomm Pfitzenmaier of Summit Commodity Brokerage. Last week, 65% of the crop had been planted - well above last year's 26%. "The initial crop condition rating for soybeans will also be out this afternoon," says Pfitzenmaier of today's report. "Good growing conditions last week should help support a good initial crop condition rating." Soybean futures on the CBOT are down 0.7% Monday morning. (firstname.lastname@example.org; @kirkmaltais)
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Grains Trade Lower as US-China Tensions Keep Rising -- Market Talk
08:47 ET - Grains futures on the CBOT Monday are down pre-market, with traders spooked by what appears to be a ratcheting up of tensions between the US and China. Although President Trump did not address any changes to the Phase One trade deal signed in January in his speech Friday, Bloomberg reports this morning that China has ordered its state grain-buying companies to halt purchasing US exports of grains and meat. "This puts Phase 1 deal in doubt and I can't imagine it will be taken well by the US, so look for a firm political response when the administration wakes up," says Richard Buttenshaw of Marex Spectron. Overnight, corn on the CBOT fell 1.6%, soybeans fell 0.7%, and wheat fell 1.3%. (email@example.com; @kirkmaltais)
Brazil's Ethanol Prices Rise for Fifth Consecutive Week -- Market Talk
0936 GMT - Brazilian ethanol prices are rising as demand returns which, if it continues, could support global sugar prices. Ethanol prices have risen for the fifth consecutive week according to CEPEA, a Brazilian agribusiness research center, while the Brazilian real has also continued strengthening. Both factors have driven the ethanol parity--the level at which Brazilian mills will likely make more ethanol and less sugar--above 9 cents per pound, according to a calculation by Dow Jones Newswires. But it remains below current sugar prices, which are hovering just above 11 cents. Robin Shaw, an analyst at Marex Spectron, also points out that even if mills cut back on supply, a large glut of sugar will likely remain, weighing on prices this year. ( firstname.lastname@example.org )
Livestock Futures Down On US/China Trade Jitters -- Market Talk
15:40 ET - Livestock futures on the CME finish lower, with live cattle futures off 0.6% to 98.975 cents per pound, while lean hog futures lose 3.3% to 55.15 cents per pound. For hogs, today's session makes it 7.2% that hog prices have fallen in the past four trading sessions--coinciding with an increase in tensions between the US and China as well as expectations for higher slaughter rates and production in the coming weeks. (email@example.com; @kirkmaltais)