TOP STORIES:
Corn Futures Fall as Bigger Crop Yields Expected
Corn for July delivery fell 1% to $3.25 a bushel on the Chicago Board of Trade on Tuesday, with current forecasts showing little in the way of adverse weather coming to the U.S. Corn Belt, meaning that the already large U.S. crop can continue to flourish.
Soybeans for July delivery fell 0.1% to $8.75 a bushel.
Wheat for July delivery rose 0.3% to $4.91 a bushel.
STORIES OF INTEREST:
Grains Climb as USD Drops For Second Day -- Market Talk
10:59 ET - Grain futures on the CBOT are mostly up in trading Tuesday. One factor providing support for them Tuesday is a second day of weakening for the US dollar, while other currencies like the Brazilian real and the Russian ruble are on the rise. The US dollar has been sliding in strength since late April, good news for US exporters amid tough economic times, says Richard Feltes of RJ O'Brien. Wheat futures are up 0.4% and soybeans are up 0.3%, while corn is down 0.7% Tuesday morning. (kirk.maltais@wsj.com; @kirkmaltais)
USDA Announces New Sale of Soybeans to China -- Market Talk
09:35 ET - The USDA has confirmed that 132,000 metric tons of soybeans have been sold to China for delivery in the 2020/21 marketing year. It's the first confirmation of Chinese buying of US soybean exports in roughly a week, and comes right after questions about the trade deal's continued viability were raised by White House trade advisor Peter Navarro on Fox News. Soybean futures on the CBOT traded down 0.3% overnight, but it appears that pressure on soybeans is no longer coming from those comments, which have since been walked back by Navarro and rebuked by President Trump and advisor Larry Kudlow. "Looking closer at the timings of things it appears that the market was being bought back up well before there were any clarifications," says Richard Buttenshaw of Marex Spectron. (kirk.maltais@wsj.com; @kirkmaltais)
Starbucks Starts Selling Plant-based Sandwiches -- Market Talk
0722 ET - Starbucks says it will begin to include a plant-based breakfast sandwich on its menus today. The sandwiches feature patties made by Impossible Foods, making it the largest US chain launch for the meat-alternative company, the company says. Starbucks has roughly 15,000 US stores, while its next largest customer, Dunkin' Brands, has 7,500 locations. Starbucks is also introducing a number of plant-based beverages this summer. Starbucks up around 1% in pre-market trading. Impossible's rival, Beyond Meat, falls 1.3%. (heather.haddon@wsj.com; @heatherhaddon)
THE MARKETS:
Livestock Futures Rise, But Export Business Still a Concern -- Market Talk
15:42 ET - Livestock futures on the CME gain, with live-cattle futures rising 2.2% at 97.2 cents a pound, while lean-hog futures finished 2.7% higher at 52.5c. For both futures contracts today's close was a reversal of a recent downward trend, but how long such a reversal lasts is unclear. "One factor that could end up impacting all trade with China, as well as other buyers, is Covid-19," AgriVisor's Karl Setzer says. "Many buyers have been asking for certification that exports will be free of Covid-19, both on meats and grains. This will likely raise concerns with an exporter, as it may be hard to maintain food safety between ports." (kirk.maltais@wsj.com; @kirkmaltais)
