TOP STORIES: 



  Soybeans Up Amid Uncertainty About Export Demand 


  Soybeans for November delivery rose 0.5% to $8.92 1/2 a bushel on the Chicago Board of Trade Friday, although grains traders are holding onto uncertainty about if China will fulfill its obligations under the phase one trade agreement. 


  While big purchases of U.S. agricultural exports by China were reported by the USDA this week, grains traders are concerned that the pace of buying from China isn't enough to fulfill its obligations under the phase one trade deal. "It will be very important that China returns with large purchase orders for U.S. soybeans next week," said AgResource. "It's early August, and there just is not that much time for China to book soybeans." The phase one trade deal, signed in January, stipulated that China would purchase over $36 billion worth of U.S. agricultural exports this year. 


  USDA Doesn't Confirm New Chinese Sale -- Market Talk 


  09:48 ET - The USDA has confirmed a new flash sale of corn exports Friday, with 114,300 metric tons being sold to Mexico for the 2020/21 marketing year and 222,000 tons of soybean meal to the Philippines for 2020/21 delivery. However, following the sale of nearly 2 million tons of corn to China yesterday, the market was hoping for more. Even with more, corn futures movement may be minimal Friday. "The Chinese export news this week was supportive, but is not likely enough to offset the rising yield prospects and much of the Chinese export business had already been penciled in by the USDA, so the trade reaction was minimal," says Tomm Pfitzenmaier of Summit Commodity Brokerage. Corn futures opened trading today down 0.3%. (kirk.maltais@wsj.com; @kirkmaltais) 


  STORIES OF INTEREST: 


  Corn Futures Pressured by Supply Concerns -- Market Talk 


  13:22 ET - Even with recent strength in the export market, corn futures are virtually unchanged, and have shed nearly 7% this month. "Corn is the favored short currently among spreaders in the Ag sector," Arlan Suderman of StoneX says, attributing the reluctance to embrace corn to the onerous production expected by US farmers in 2020's harvest. "There's still a lot of uncertainty revolving around escalating geopolitical developments, the November elections, coronavirus and August weather," Suderman says. "Traders feel most comfortable being bearish corn right now." (kirk.maltais@wsj.com; @kirkmaltais) 


  Soybean Oil Consumption Stays High -- Market Talk 


  1123 ET - Even with a decline in biodiesel production, consumption of soybean oil in the US has stayed high - with soybean oil making up a bigger portion of total biodiesel output. "May use of soybean oil for biodiesel represented 70.2% of total feedstock, the highest percentage since December 2011," says Terry Reilly of Futures International. Soybean oil consumption in May 2020 hit 778 million pounds, above 672 million during April 2020 and above 659 million for May 2019. These figures are way above expectation, says Reilly, citing Covid-19 as a factor impacting production of products using the oil. Soybean futures on the CBOT are up 0.5% Friday. (kirk.maltais@wsj.com; @kirkmaltais) 


  THE MARKETS: 


  Cattle Finish at Highest Level Since March -- Market Talk 


  14:59 ET - Live cattle futures trading on the CME finished up 1.1% at $1.07875 per pound. For the October contract, it's the highest they've traded at since March 5, when the cattle contract was on the decline in reaction to the onset of the coronavirus pandemic. The uptick in cattle futures this week is following the uptick in boxed beef prices, a sign of improving demand post-coronavirus. Lean hog futures, meanwhile, finished trading Friday up 2.7% to 49.625 cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)