TOP STORIES: 



  Wheat Futures Higher on Tighter World Supplies 


  Wheat for September delivery rose 4.6% to $5.50 3/4 a bushel on the Chicago Board of Trade Wednesday, in reaction to projections of a smaller European harvest in 2020 as well as hopes of further Chinese purchasing of U.S. exports. Soybeans for November delivery rose 0.6% to $8.82 3/4 a bushel. Corn for December delivery rose 0.1% to $3.34 a bushel. 


  Wheat futures trading on the CBOT Wednesday finished at their highest levels since mid-April. "There's a whole grouping of news right now driving things in the short-term," said Rich Nelson of Allendale Inc. Speculation of a stronger-than-expected La Nina this year, as well as a 6% drop in projections for the German wheat harvest by agricultural consulting firm AgriTel are the main factors driving traders today, according to Nelson. "The continued breakdown in the competition is driving trade," he said. 


  Tensions With China Back in Focus For Grains -- Market Talk 


  09:25 ET - President Trump's signing of sanctions against China to punish it for actions against Hong Kong is ratcheting tensions between the two nations -- which combined with recent comments by the President casting doubt that a second phase of a trade agreement will be reached has grain traders on edge. "Tensions are high between the US/China and traders will remain nervous that either Trump or Xi pulls their support from the Phase 1 deal as political retaliation," says AgResource. However, the USDA announced this morning that China has purchased 389,000 metric tons of US soybeans and 132,000 tons of corn for 2020/21 delivery - which should assuage these concerns, at least temporarily. (kirk.maltais@wsj.com; @kirkmaltais) 


  Restaurant Industry Lobbies for Bailout -- Market Talk 


  09:18 ET - The National Restaurant Association is asking Congress to pass a $120B recovery fund, a second round of Paycheck Protection Program loans and other support as another wave of coronavirus cases forces closures. The trade group estimates the restaurant industry is on track to lose $240B by the end of the year, more than any other industry, according to its analysis. Government orders to slow the virus's spread have suspended service at nearly 100,000 restaurants, the group says. (heather.haddon@wsj.com; @heatherhaddon) 


  STORIES OF INTEREST: 


  Ethanol Production Extends Recovery -- Market Talk 


  11:12 ET - Ethanol production is up again this week, according to data released by the EIA. Ethanol production hit a rate of 931,000 barrels a day, according to the EIA. Production has now risen 73% since finding a record low of 537,000 barrels a day in late April. However, it's still 13% lower than this time last year, suggesting that production has room to recover further. Meanwhile, ethanol inventories in the US didn't rise again this week, a good sign for traders. However, they declined only 12,000 barrels, totaling 20.61M barrels. (kirk.maltais@wsj.com; @kirkmaltais) 


  Hemp Acreage Expected to Fall -- Market Talk 


  1347 ET - Acreage of industrial hemp planted by US farmers this year is expected to be less than last year -- thanks mostly to a 2019 growing season that overpromised and under-delivered for farmers hoping to get in on a crop with better money-making potential than standard row crops. State regulators expect "a significant walk back" on 2020 acreage and harvesting, according to cannabis price-reporting agency Hemp Benchmarks -- due mostly to lower demand for CBD products amid a lack of clarity from the FDA about the usage of CBD in consumer products. The coronavirus pandemic is also a factor keeping a lid on demand, according to the price-reporting agency. (kirk.maltais@wsj.com; @kirkmaltais) 


  THE MARKETS: 


  Livestock Futures Finish Trading With Gains -- Market Talk 


  15:36 ET - Livestock futures on the CME end higher Wednesday, with most-active live cattle futures up 2.5% at $1.013 per pound--their highest close in over four months. Meanwhile, hog futures rise 0.5% to 50.15 cents per pound. For cattle, much of the uptick is attributed to fewer cattle coming onto the slaughter market, although for now it will still take time for meatpackers to work through the high amounts of backed-up animal inventory, says Steiner Consulting. (kirk.maltais@wsj.com; @kirkmaltais)