TOP STORIES 


 
Corn Rally Extends as Feedgrain Stays Attractive -- Market Talk

14:35 ET - Corn futures trading on the CBOT lead row crop futures higher. One reason for the uptick: even with higher prices, US corn for use as feedgrain is still among the cheapest sources in the world. "Although there has been a sizeable price rally, limited demand rationing is occurring," says AgResource. "US Gulf corn is the cheapest source of corn supply through April and likely May as Argentine exporters raise their fob basis bids amid crop shortfalls." In trading Wednesday, corn futures up 1.1%. (kirk.maltais@wsj.com; @kirkmaltais)

STORIES OF INTEREST 


 
Corn Rises to Highest Level Since 2019

Corn for December delivery rose 1.3% to $4.25 3/4 a bushel on the Chicago Board of Trade Wednesday, pushing to a July 2019 high as the USDA confirmed a new purchase of U.S. corn exports. Soybeans for January delivery rose 0.5% to $11.75 3/4 a bushel, their highest close since June 2016. Wheat for December delivery rose 0.4% to $5.97 3/4 a bushel. 


 
Export Sales for Corn and Soybeans Expected to Slide -- Market Talk

12:55 ET - Weekly export sales for US corn and soybeans are expected to decline off of last week's figures, according to grains traders surveyed by WSJ. Traders expect corn exports to total anywhere from 600,000 metric tons to 1M tons, and soybean exports around 500,000 tons to 1.2M tons. Unless the USDA reports figures tomorrow exceeding these estimates, then these totals will be down from last week -- coinciding with a surge in prices and discussions about rationing demand via high crop prices. "Soybean prices are at new four-year highs, while corn is following, on continued chatter that Chinese buyers booked as many as a dozen cargoes of each this week. It hasn't shown up in USDA's reporting system yet," Arlan Suderman of StoneX says. (kirk.maltais@wsj.com; @kirkmaltais) 


 
USDA Announces New Corn Flash Sale -- Market Talk

09:52 ET - The USDA announces a new flash sale of US corn to unknown destinations, confirming that 140,000 metric tons sold. For grains traders anticipating China's need for corn will lead to more US corn buying, today's sale announcement could be what's needed to keep corn futures rallying on the CBOT. "Corn is approaching a critical point where the rally stalls and the market remains in a correction, or the market makes a leg higher," says Doug Bergman of RCM Alternatives. (kirk.maltais@wsj.com, @kirkmaltais) 


 
Grains Traders Look For New Sales to China -- Market Talk

08:41 ET - Speculation that China will be buying more US corn and soybeans has been a driver for CBOT futures in recent sessions, but traders are looking for confirmation of new buys to continue the momentum, says Allendale Inc. "The last sale for corn was 206,900 [metric tons] to Unknown on 11/6. For soybeans, the last exciting sale was 123,000 [metric tons] to Unknown on 11/9. Traders continue to suggest consistent corn sales to China and more spaced out soybean sales in the coming weeks." Overnight, corn futures rose 0.8%, soybeans gained 1.2%, and wheat rose 0.9%. (kirk.maltais@wsj.com; @kirkmaltais)

FUTURES MARKETS 


 
Livestock Futures Finish Mixed -- Market Talk

15:37 ET - Livestock futures take different paths, with most-active live cattle futures down 0.4% to $1.1315 per pound, while lean hog futures climb 0.4% to 65.9 cents per pound. For hogs, the notion that a virus surge will become less of a factor affecting consumer demand was a source of support, according to RJO Futures. (kirk.maltais@wsj.com; @kirkmaltais)

CASH MARKETS 


 
Estimated U.S. Pork Packer Margin Index - Nov 18 
 
 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 18       +$ 32.83            +$ 36.87 
Nov 17       +$ 34.72            +$ 39.24 
Nov 16       +$ 43.67            +$ 45.73 
 
* 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   98.7 
      (Percent of Year-Ago)      Select   99.1 
 
USDA Boxed Beef, Pork Reports

Wholesale choice-grade beef prices Wednesday rose $2.12 per hundred pounds, to $235.84, according to the USDA. Select-grade prices fell 34 cents per hundred pounds, to $213.62. The total load count was 142. Wholesale pork prices fell $1.10, to $76.22 a hundred pounds, based on Omaha, Neb., price quotes.

(END) Dow Jones Newswires

11-18-20 1707ET