TOP STORIES
Farm and Environmental Groups Unveil Climate Policy Proposals -- Market Talk
10:31 ET - Major US farm and environmental groups are joining forces to peddle a sweeping set of climate policy recommendations on Capitol Hill, hoping the proposals will win broad support in a divided Congress. The proposals, drawn up by groups including American Farm Bureau Federation and The Nature Conservancy, address topics from soil health to food waste, and include ideas--like establishing a USDA-led "carbon bank"--that would pay or provide tax credits to farmers who store carbon in their soils. The rollout comes as some farmers fear a ramp-up in burdensome environmental regulations under President-elect Joe Biden, who pledged during his campaign to invest in "climate-friendly farming" and help decarbonize the agricultural sector. (jesse.newman@wsj.com; @jessenewman13)
STORIES OF INTEREST
Soybeans Hit Highest Level Since June 2016
Soybeans for January delivery rose 1.4% to $11.69 3/4 a bushel, on the Chicago Board of Trade Tuesday, with rising soybean prices apparently not having an effect on world export demand.
Corn for December delivery rose 1% to $4.20 1/4 a bushel.
Wheat for December delivery fell 0.5% to $5.95 1/4 a bushel.
Global Demand for Dairy Forecast to Firm Over 2021, 2022 -- Market Talk
21:10 GMT - Global demand for dairy products will firm over 2021 and 2022 as countries gradually get on top of Covid-19, says Westpac. It forecasts New Zealand producers to get a farmgate price of NZ$7.00/kg of milksolids for the 2021-22 production year, the same as its forecast for the current production year. A trend of strengthening demand for dairy has already started in China and East Asia, the bank says, benefiting New Zealand which exports most of its dairy production. But a stronger-than-expected New Zealand dollar is a downside risk to the forecast, it says. (stephen.wright@wsj.com)
Vaccine News Lifts Corn -- Market Talk
1244 ET - Reports of potential coronavirus vaccines, while lifting equity markets in recent sessions, has provided corn futures with support, says RJO Futures. This is because a vaccine would likely cause more vehicles to get back on the road -- increasing gasoline consumption and, by extension, ethanol. However, news of resurging cases is bad news for corn, says RJO. "Traders are concerned that with virus cases spiking, ethanol stocks could continue to grow in the weekly update," says the firm. The EIA will issue its weekly ethanol stocks and production data tomorrow. Corn futures on the CBOT are up 1.2% Tuesday, while soybeans are up 1.8% and wheat is down 0.2%. (kirk.maltais@wsj.com; @kirkmaltais)
Wheat Uptick Limited as Crop Condition Improves -- Market Talk
09:47 ET - The steady improvement of winter wheat in the US is putting some pressure on CBOT wheat futures. According to Monday's crop progress report from the USDA, US winter wheat condition registered at 46% good or excellent condition - which is up 1% from the previous week. US weather is expected to support a continued improvement in the wheat crop's condition. "US winter wheat areas are expected to get more moisture over the next week, which is likely to limit buying interest," says Doug Bergman of RCM Alternatives. Early in trading Tuesday, wheat futures on the CBOT are up 0.3%. (kirk.maltais@wsj.com; @kirkmaltais)
FUTURES MARKETS
Livestock Futures Close Higher For Second Day -- Market Talk
14:58 ET - Livestock futures trading on the CME close higher again -- making it the second straight higher day for both the cattle and hog contracts. In the short-term, holiday demand is supportive for beef and pork consumption, says RJO Futures. "The market is finding some support from bullish outside market forces as traders see better demand ahead," says the firm. To close trading Tuesday, the most active live cattle contract rose 1.4% to $1.13575 per pound, while the most active hog contract rose 0.6% to 65.525 cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)
CASH MARKETS
Estimated U.S. Pork Packer Margin Index - Nov 17
This report reflects U.S. pork packer processing margins. The margin indices
are calculated using current cash hog or carcass values and wholesale pork
cutout values and may not reflect actual margins at the plants. These
estimates reflect the general health of the industry and are not meant to
be indicative of any particular company or plant.
Source: USDA, based on Wall Street Journal calculations
All figures are on a per-head basis.
Date Standard Margin Estimated margin
Operating Index at vertically -
integrated operations
Nov 17 +$ 34.72 +$ 39.24
Nov 16 +$ 43.67 +$ 45.73
Nov 13 +$ 36.72 +$ 42.18
* Based on Iowa State University's latest estimated cost of production.
A positive number indicates a processing margin above the cost of
production of the animals.
Beef-O-Meter
This report compares the USDA's latest beef carcass composite
values as a percentage of their respective year-ago prices.
Beef
For Today Choice 97.7
(Percent of Year-Ago) Select 99.2
USDA Boxed Beef, Pork Reports Wholesale choice-grade beef prices Tuesday rose $6.77 per hundred pounds, to $233.72, according to the USDA. Select-grade prices rose $1.61 per hundred pounds, to $213.96. The total load count was 142. Wholesale pork prices fell $3.02, to $77.32 a hundred pounds, based on Omaha, Neb., price quotes.
(END) Dow Jones Newswires
11-17-20 1720ET
