TOP STORIES:
Corn Drops as Weather Bets Waver
Corn for December delivery fell 1% to $3.52 1/2 a bushel on the Chicago Board of Trade Tuesday, with grains traders less optimistic that hot weather would put a dent on abundant crop supplies.
Soybeans for November delivery fell 0.4% to $9.02 1/2 a bushel.
Wheat for September delivery rose 0.4% to $4.95 1/4 a bushel.
Wasde Expected to Show Abundant Grain Supplies -- Market Talk
12:59 ET - The USDA's monthly Wasde report is due out noon ET Friday, and in it grains traders are expecting to see updated production, stockpile and yield data for corn and soybeans. Overall, this updated data is expected to show that US crop supplies will stay abundant this year, even with hot weather this summer drying out soil while crops attempt to grow. "Don't look for anything bullish in the numbers Friday with trend yields likely to project large corn supplies and adequate bean supplies," says Doug Bergman of RCM Alternatives. Corn and soybean futures on CBOT are both trading lower. (kirk.maltais@wsj.com; @kirkmaltais)
STORIES OF INTEREST:
Canadian Railway Moves Record Amount of Grain -- Market Talk
14:25 ET - Canadian National Railway says that it moved a record amount of Canadian grains in the first half of 2020--transporting 15M metric tons of grain for the year through June 30. The company says it's on pace to transport 26.9M tons by the end of the year, which would break last years' record of 26.5M tons. "From Canadian farmers to port terminals, these achievements are a testament to the strength of our supply chain and its ability to meet the continued strong global demand for grain," says James Cairns, the company's senior vice president of Rail Centric Supply Chain. CN's record performance comes despite the coronavirus pandemic impacting demand for grains globally. (kirk.maltais@wsj.com; @kirkmaltais)
Grain Export Sales a Concern -- Market Talk
13:48 ET - Despite a strong showing for grain export inspections yesterday, grains traders are still concerned a lack of notices from the USDA about sales of grains over 100,000 metric tons to China means that little in the way of new sales is actually happening. "What has been absent so far this summer is sales to nations other than China," AgResource says. "Covid-19 appears to have a negative impact on world grain trade." Without strong demand from the export market, US farmers may have a tougher time selling their crop, as domestic demand has stayed weak in the US, especially with a resurgence of coronavirus in some states. "The US market lacks a demand driver to push grain/soy upwards," the firm says. (kirk.maltais@wsj.com; @kirkmaltais)
Russian Wheat Cheapest on Offer at Egyptian Tender -- Update
Russian wheat was the cheapest out of a line up of 12 bids at an Egyptian international wheat tender on Tuesday, a trader said.
Russian wheat made up the majority of the bids with the cheapest offer priced at $205 a metric ton for a 55,000-ton cargo and came from GTCS Trading.
THE MARKETS:
Livestock Futures End Day On Downside -- Market Talk
15:31 ET - Livestock futures finish lower--with August live cattle futures on the CME down 0.1% at $1.00 per pound and August lean hog futures off 0.8% to 48.875 cents per pound. Hog futures follow the trajectory of pork cutouts in moving lower--according to the USDA, cutouts altogether have been on the decline this week. Primal loin fell over $3 per hundredweight yesterday, according to the USDA--leaving loin prices at $66.36 per cwt. Hog futures are off 15% in the past month. (kirk.maltais@wsj.com; @kirkmaltais)
