Grain, Soybean Futures Fall on New Tariff Twist
Grain and soybean futures fell to new lows for the season on Wednesday after the Trump administration said it was planning further tariffs against Chinese goods.
The White House said late Tuesday that it would hit a further $200 billion worth of Chinese products with a 10% duty, adding to the $50 billion of goods it has previously targeted. Beijing, which already started levying retaliatory duties on U.S. soybeans and other products, said it planned new penalties of its own.
Soybean futures for July delivery fell 2.6% to $8.29 3/4 a bushel at the Chicago Board of Trade, touching the lowest value since 2008. July-dated corn contracts slid 2.5% to $3.31 1/4 a bushel, while July wheat fell 4% to $4.69 3/4 a bushel.
Tariffs Likely Threaten Already Weak Food Price Increases -- Market Talk
11:07 ET - Producer price increases for meat, vegetables, dairy and other food commodities continued to show weak annual growth in June, potentially pressuring growers and food retailers that want moderate inflation, according to Jefferies. Food retail "prices could be flirting dangerously close to deflationary territory," if they don't bump up soon, writes BMO Capital Markets. "Global trade relations and tariffs add additional uncertainty to the outlook for commodity prices," the investment bank writes. (firstname.lastname@example.org; @heatherhaddon)
Top US Farm Cooperative Bounces Back -- Market Talk
1423 ET - CHS, the largest US farm cooperative group, is moving past a financial rough patch exacerbated by the moribund farm economy, though selling assets is part of the reason. Minnesota-based CHS reports a $229M net profit for the three months ended May 31, versus a $45M loss a year ago, as its agriculture and energy units regained profitability. CHS got big boosts from the $66M sale of 34 convenience stores in the Pacific Northwest -- part of its fuel business -- and $58M from the sale of an insurance business. CHS gains 1.5% to $8.27. (email@example.com; @jacobbunge)
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FDA Targets Food Labels In Vending Machines -- Market Talk
13:44 GMT - The US Food & Drug Administration wants Americans to make better food choices when it comes to the candy bars and chips they buy from vending machines. The agency has published a proposed rule to revise front-of-package labeling requirements on calories for packaged foods sold in glass front vending machines. The FDA is proposing the type size on calorie disclosures be at least 1.5 times that disclosing the net weight. Calorie counts have become a key area in the battleground for share between packaged foods makers as consumers flee for fresh and healthier choices. The proposal comes after the FDA in May began requiring restaurant chains to list calories for food and alcohol on menus. (Saabira.Chaudhuri@wsj.com; @SaabiraC)
Livestock Futures Mostly Lower on Trade Flare-Up
Livestock markets were under pressure on Wednesday after the latest salvo in the U.S. and China's ongoing trade dispute.
Live cattle futures for August delivery fell 1.5% to $1.0385 a pound at the Chicago Mercantile Exchange, trading at the lowest point since May.
Lean hogs were among the few commodities to resist the selloff, however. July-dated contracts rose 0.3% to 79.775 cents a pound, halting a four-day losing streak, but futures for delivery later this year fell.