Soybeans, Corn Climb on Slower-Than-Expected Planting
Soybeans for July delivery rose 3.6% to $8.31 1/2 a bushel on the Chicago Board of Trade on Tuesday, as traders quickly turned their focus away from the U.S.-China trade war and toward slower-than-expected planting progress across the Midwest.
Corn for July delivery gained 3.4% to $3.68 3/4 a bushel.
July wheat contracts rose 2.6% to $4.48 1/2 a bushel.
USDA Reports New Soybean Sale -- Market Talk
10:03 ET - The USDA has reported a new sale of 2018/19 soybeans, with 180,000 metric tons being sent to an unknown destination. Because sales to an unknown destination are often sales to China, the news may indicate that US-China trade negotiations are still ongoing, even with the trade-off of tariffs seen between the two sides since Friday. Many traders were anticipating large cancellations of previously announced grains purchases by China in response to the breakdown of a trade deal on Friday. On Twitter this morning, President Trump said that "hopefully China will do us the honor of continuing to buy our great farm product, the best, but if not your Country will be making up the difference." No concrete plans for such a bailout have been released. (firstname.lastname@example.org; @kirkmaltais)
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Prevented Plant Option Growing in Popularity for Farmers -- Market Talk
08:59 ET - Planting delays, depressed prices and heightened uncertainty over the US-China trade war has many farmers thinking seriously about utilizing the prevented planting provisions in their crop insurance policies. The USDA defines prevented planting as "a failure to plant an insured crop with the proper equipment by the final planting date designated in the insurance policy's Special Provisions or during the late planting period." The amount paid out varies by insurance policy. "With the sharp break in bean prices, traders are now talking about the possibility of a large number of farmers taking the prevent plant option," says Tomm Pfitzenmaier of Summit Commodity Brokerage. Final planting dates extend as late as June 5. (email@example.com; @kirkmaltais)
Burger King 'Impossible Whopper' Offering Expands -- Market Talk
0700 ET - Burger King is rolling out plant-based Whoppers to three additional markets on May 14. The sandwiches made with Impossible Burger patties will be offered in Miami, Montgomery, Ala. and Columbus, Ga. after premiering in the burger chain's St. Louis market earlier this year. The burgers have proven popular overall, with the company reporting shortages as it seeks to keep up with demand. Burger King will promote the expansion with a bus tour as it seeks to improve US same-store sales. (firstname.lastname@example.org; @heatherhaddon)
Bayer Shares Resume Fall After Roundup Payout Tops $2 Bln
BERLIN--Bayer AG (BAYN.XE) shares resumed their monthslong fall on Tuesday after the company was hit by a more-than $2 billion jury award over its Roundup herbicide, marking a sharp escalation in the chemical and drug giant's legal woes.
The shares were off 2.7% around midday--the worst performer in the Frankfurt stock exchange's blue-chip DAX index--after hitting a new seven-year low earlier following Bayer's third Roundup court defeat in 10 months. A California jury on Monday awarded $2.055 billion to a couple who blamed the weedkiller for causing their cancer--up sharply from the two-digit million figures Bayer is facing in the previous cases.
Cattle Doesn't Catch Rebound Wave -- Market Talk
14:53 ET - Even though a correction rippled through commodities and equities as a whole today, live cattle futures were one of the few commodities not to benefit from the momentum. The July live cattle contract on the CME finished down 0.2%, at $1.095 per pound. According to Jeff French of Top Third Ag Marketing, the contract moved inversely of the corn contract as feeder cattle prices were pushed lower at the prospect of higher-cost feed. "(A) very weak close considering the hog futures were trading $3 (per hundredweight) higher," says French. "Every time the cattle futures show a little life they are hit with substantial selling pressure." Meanwhile, hog futures finished 2.8% up, at 89.125 cents per pound. (email@example.com, @kirkmaltais)