Corn Rallies on Report of New China Buying
Corn for December delivery rose 3.4%, to $4.40 1/2 a bushel, on the Chicago Board of Trade on Wednesday, partially in reaction to a Bloomberg report that said China would begin buying shipments of U.S. corn a gesture of goodwill. Wheat for September delivery rose 2%, to $5.13 1/2 a bushel. Soybeans for November delivery rose 1%, to $9.08 a bushel.
Corn had the biggest gains after Bloomberg, citing anonymous sources, reported that the Chinese government is again considering purchasing U.S. agricultural products, including soybeans and livestock. However, other factors were at play for corn, including growing disbelief in Friday's USDA data among traders, which had shown higher corn planted acres versus last year.
Kellogg Shares Trade up 6%, Surpassing Other Food Producers >K
Shares of Kellogg Co. (K) are shooting up in Wednesday trading, notching gains stronger than other packaged-food companies in a short session.
Kellogg's stock is up 6% midday to $56.64, more than triple the gains from General Mills, Hershey Co. (HSY) and Mondelez International.
Farm Bureaus Dispute USDA's Acreage Report -- Market Talk
09:17 ET - Grain markets were roiled on Friday following the release of the USDA's annual crop acreage report, which placed expected corn acres planted in the US at 91.7M acres, 2.6M higher than last year. The controversy from the surprising result has continued, with the American Farm Bureau Federation releasing a collection of feedback from state farm bureaus suggesting that the corn acres reported by the USDA were far overstated -- and soybeans well understated. "It is tough to nail down how accurate the latest USDA planting report is," says the Ohio Farm Bureau. "Some of our economists don't believe it is super far off, but if we ask our farmers they claim much less has been planted." (email@example.com; @kirkmaltais)
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McDonald's Canada to Serve Coffee That Meets Ethical-Sourcing Standards
McDonald's Canada said Wednesday it would commit to ethically sourcing coffee beans for its McCafe coffee using strict environmental and social standards in an effort to incorporate more sustainability in its supply chain.
The fast-food chain said it has partnered with the Rainforest Alliance, a conservation nonprofit, to ensure that all of the coffee that is grown and harvested for the company uses standards that preserve rainforests, conserve wildlife and support local communities in global coffee-growing regions.
Canopy Shares Regain Ground After CEO Firing Announcement -- Market Talk
12:13 ET - Canopy shares gain 1.3%, regaining ground after shares sank on co-CEO Bruce Linton saying he was fired from the marijuana company. Shares sank earlier in the session after Linton said on CNBC he was terminated. "The board had decided they wanted a different chair and a different co-CEO, so I'm out effective immediately," Linton adds. Meanwhile, the S&P/TSX adds 0.5%. (firstname.lastname@example.org; @francescamarief)
Canada and EU Reach Boundaries Deal in Event of Swine Fever -- Market Talk
14:20 ET - Officials with the Canadian Food Inspection Agency (CFIA) and the European Commission's Department of Health and Food Safety say that they have reached an agreement to attempt to limit the spread of African swine fever, should it be discovered in Canada, while maintaining safe trade. "If a positive case of ASF is confirmed in an area, geographic boundaries are defined to contain the outbreak," says the CFIA. Canada, the third-largest exporter of pork globally, exported C$4.2M of pork to the EU last year. (email@example.com; @kirkmaltais)