Wheat Futures Slip as Rainfall Returns to Eastern Europe
Wheat for July delivery fell 1.4% to $5.08 a bushel on the Chicago Board of Trade on Tuesday, amid evidence that crops in Ukraine and Russia are receiving some much-needed rain and are looking larger than anticipated.
Corn for July delivery rose 0.3% to $3.24 1/4 a bushel.
Soybeans for July delivery rose 1.2% to $8.50 1/2 a bushel.
STORIES OF INTEREST:
USD Slide Positive For Grains -- Market Talk
11:20 ET - Recent weakness in the US dollar, due in part to civil unrest seen across the country, has provided support for grains futures today, as a weaker dollar makes US grain exports more competitive for overseas business. "The US Dollar has extended its slide and this morning has reached to the lowest level traded since mid-March," says Dan Hueber of the Hueber Report. "Do keep in mind that this just returns our currency to levels we traded at throughout much of 2019, but long-term charts give the impression that there should be more weakness ahead." If the USD Index on the Intercontinental Exchange finishes lower today, it'll be the sixth straight session that it has lost ground. (firstname.lastname@example.org; @kirkmaltais)
USDA Confirms China Soybean Purchase -- Market Talk
09:56 ET - The USDA has confirmed that China has purchased more soybeans from the US, releasing a notice Tuesday saying that 132,000 metric tons of US soybeans have been purchased for shipment to China in the 2020/21 marketing year. This confirms reports yesterday that Chinese buyers had purchased US soybean cargos despite ratcheted-up tensions between the two sides. Even so, CBOT soybean futures appear to have already priced in a new Chinese purchase, with the July contract up 0.5% so far this morning - the same as it was before the market opened Tuesday. (email@example.com; @kirkmaltais)
Egypt's GASC Buys 120,000 Tons of Ukrainian Wheat -- Update
Egypt bought 120,000 metric tons of Ukrainian wheat at an international tender on Tuesday, according to traders.
Egypt's state import agency, the General Authority for Supply Commodities, bought the wheat in two 60,000 ton cargoes for delivery between July 10 and 25.
Rice Higher on Consumer Demand Squeeze -- Market Talk
1404 ET - A squeeze in the availability of rice in the US has futures prices on the rise in recent trading sessions. Rough rice futures on the CME are up 5.2% to 19.065 cents per hundredweight, making it 19.1% rice futures have risen in the past six trading sessions. The reason for rice's recent uptick is due to increased consumer demand, says Terry Reilly of Futures International. "Go to a US grocery store, you can't find it," says Reilly. "It's like gold if you do. More and more people are cooking at home." Sales of rice on the retail level are up 69% in the past 12 weeks through May 23, according to data from Nielsen. (firstname.lastname@example.org; @kirkmaltais)
Livestock Futures Finish Lower -- Market Talk
15:12 ET - Livestock futures on the CME finish lower, with a resurgence in livestock slaughters in response to meatpacking plants being open pressuring prices. "Meat processing plants are starting to come back on-line across the United States," says AgriVisor. "As they do, the processing rates for the United States are obviously rising as well." With slaughters trending higher to meet that demand, livestock futures are dropping. August live cattle futures finished trading down 2.8% at 96.2 cents per pound, while July lean hog futures down 0.5% to 54.875 cents per pound. (email@example.com; @kirkmaltais)