TOP STORIES:

Corn Soars as USDA Reports Show Tighter Supply

Corn for December delivery rose 7.3%, to $5.88 1/2 a bushel, on the Chicago Board of Trade Wednesday, closing limit-up in response to the USDA reporting planted acres by farmers was less than expected by analysts. Soybeans for November delivery rose 6.6%, at $13.99 a bushel. Wheat for September delivery rose 5.2%, to $6.79 1/2 a bushel.

CBOT grain futures made a sharp turn higher following the release of two government reports showing stronger demand and less supply of grains than expected. In its planted acreage report, the USDA said that U.S. farmers planted 92.7 million acres of corn, 87.6 million acres of soybeans, and 46.7 million acres of wheat this year. These totals are lower than expected by grains traders--analysts surveyed by The Wall Street Journal forecast planted acres at 93.8 million acres of corn, 89.2 acres of soybeans, and 46 million acres of wheat. Meanwhile, in its quarterly stocks report, the USDA forecast corn stockpiles as of June 1 at 4.11 billion bushels, soybeans stocks at 767 million bushels, and wheat stocks at 844 million bushels--all below analyst expectations.

General Mills Warns of Inflation, Readies for Shifting Consumer Behavior -- Update

General Mills Inc. said it is raising prices across nearly all its grocery categories around the world, as the maker of Cheerios cereal and Betty Crocker cake mix says it faces its highest costs in a decade.

More expensive ingredients, packaging, trucking and labor will push General Mills' overall costs about 7% higher over the next year or so, executives said.

General Mills on Wednesday projected its 2021 profits would remain flat or decline as much as 2%. For its latest quarter General Mills said profit fell by one-third to $416.8 million, versus the same period last year, when the pandemic's onset in the U.S. set off a surge in food purchases.

The company's earnings after adjustments were ahead of expectations from analysts, as were sales of $4.52 billion.

Agricultural Groups Push for Government Clarity on RFS Waivers -- Market Talk

1007 ET - Following a decision by the US Supreme Court last week allowing waivers to the renewable fuel standard for small oil refineries by the EPA, groups and lawmakers representing US agriculture are pushing for the Biden Administration to issue a statement providing clarity as to the futures of these waivers. Bills were introduced into the US Senate by Senator Amy Klobuchar (D-MN) and Senator Joni Ernst (R-IA) yesterday seeking public investment in renewable fuel infrastructure, as well as another bill introducing a tax credit for automakers making flex-fuel vehicles, reports Reuters. Meanwhile, various agricultural groups have publicly urged the EPA to state how it plans to apply waivers for oil refineries going forward. (kirk.maltais@wsj.com; @kirkmaltais)

STORIES OF INTEREST:

CES 2022 Will Have Space, Food Tech Categories -- Market Talk

1041 ET - CES, put on by the Consumer Technology Association, will have space tech and food tech as new exhibition categories next year, the group says. The tech show is returning in person in Las Vegas on Jan. 5-8, 2022. The show organizer says Sierra Space, a subsidiary of Sierra Nevada Corporation, will showcase its Dream Chaser spaceplane. The food-tech category will include agriculture, ingredient innovation, meal kits and deliveries, nutrition, plant-based proteins, traceability, sustainability, vertical farming and others, CES says. Grov Technologies, Impossible Foods and John Deere will be returning exhibitors. (dave.sebastian@wsj.com; @depsebastian)

Weather Looks to Become Chief Focus Following USDA Reports -- Market Talk

11:24 ET - Weather in US grains-growing areas is expected to resume being the primary focus of grains traders after the USDA releases its planted acreage and quarterly grain stocks report this afternoon. "The focus will shift primarily to weather following today's reports," Arlan Suderman of StoneX says, adding that heat is expected to grow in the west next week, particularly in the Northern Plains, where spring wheat crops have been suffering amid low soil moisture. (kirk.maltais@wsj.com; @kirkmaltais)

THE MARKETS:

Grain Traders View USDA Reports as 'Extremely Bullish' -- Market Talk

1512 ET - Livestock futures trading on the CME finish mixed Wednesday, this after uniformly dropping to begin trading today. Live cattle futures finished 0.7% higher at $1.22725 per pound, while lean hog futures finished down 0.4% to $1.0325 per pound--ending a three-day winning streak for that contract. For cattle, movement seen in corn futures today following the USDA's release of the planted acreage and quarterly stocks reports is informing movements in the costs for cattle feed--and higher prices mean that higher cattle prices are needed, livestock traders say. (kirk.maltais@wsj.com;, @kirkmaltais)

(END) Dow Jones Newswires

06-30-21 1731ET