Wheat Drops as Foreign Competition Remains Cheaper
Wheat for September delivery fell 1% to $4.69 a bushel on the Chicago Board of Trade on Thursday, as U.S. wheat appears to still be too expensive to compete against product from Russia or Eastern Europe. Soybeans for December delivery was down 0.8% at $8.70 3/4 a bushel. Corn for December delivery rose 0.2% to $3.71 a bushel.
The most competitive offer for an Egyptian state wheat tender came out of Ukraine, Egypt's state buying authority said Thursday. Other offers for the tender--looking for wheat for delivery next month--came from France and Russia, as well as other European nations. No U.S. wheat was even offered, suggesting that domestic wheat prices haven't fallen enough to compete globally.
Mondelez, Kraft Heinz Cry Foul Over Regulator's Comments
Two of the largest food manufacturers in the U.S. said the federal government's commodities regulator failed to hold up its end of a deal that settled a 2015 lawsuit related to alleged manipulation of the wheat futures market.
Mondelez International Inc. and Kraft Heinz Co. said statements made by the U.S. Commodity Futures Trading Commission on Thursday violated the terms of a consent order agreed to this week that settled the lawsuit.
China Cancels Large Purchase of US Soybeans -- Market Talk
08:59 ET - Chinese buyers canceled the purchase of 422,700 metric tons of 2018/19 soybeans from the US, according to Thursday's export sales report from the USDA. However, the report also shows that beans that were scheduled to be shipped to China are still being sent, with China being the destination for 599,300 tons. Additionally, 586,000 tons of 2019/20 soybeans were purchased by an unknown destination -- which the market generally believes to be China. Overall, 707,500 tons in new soybean sales were reported this week, exceeding the expectations of traders polled by Dow Jones Newswires. Sales of corn and wheat fell within predicted ranges. (email@example.com; @kirkmaltais)
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Cannabis Sector Slips After Canopy Earnings -- Market Talk
13:40 ET - Cannabis stocks tumbled after Canopy Growth, one of Canada's biggest cannabis companies, reported weaker-than-expected sales. Canopy posted C$90.5M in net revenue in 1Q, up from C$25.9 million a year earlier, but below the C$111.9 million of revenue analysts had expected for the quarter. Shares of the company are off about 14%. Aurora Cannabis' stock is down 4% and Tilray and Cronos Group both down roughly 10% and 7%, respectively. "We believe Canopy remains in a strong position with all the resources to regain its footing, but proof points are necessary for a more robust performance for the shares," Stifel says. (firstname.lastname@example.org)
Iowa Farmers Stick With Trump Despite Trade War
DES MOINES, Iowa -- As President Trump maps out his re-election bid, farmers in this battleground state are backing him even with the U.S. Farm Belt bracing for deeper pain from his trade fight with China.
In and around the livestock barns, agriculture building and an antique-tractor collection at the Iowa State Fair in recent days, farmers almost universally expressed support for the president and pledged to vote for him in 2020.
"He's doing a good job and trying to make sure we're treated fairly," said Kevin Prevo, a fifth-generation farmer who raises corn, soybeans, cattle and hogs on about 1,400 acres near Bloomfield, Iowa. Mr. Prevo showed zero uncertainty when asked whether he would vote for Mr. Trump again in 2020. "You bet," he said.
Hogs Fall Even with New Chinese Buying -- Market Talk
15:40 ET - Even with confirmation China is still buying pork from the US, lean-hog futures on the CME finished Thursday's session underwater, down 2.7% to 65 cents a pound. "Unfortunately the opening spike higher lasted all but about 5 minutes and the market sold right back off [onto] negative territory," Craig VanDyke of Top Third Ag Marketing says. Meanwhile, cattle futures finished the day virtually unchanged at 98.525 cents per pound. (email@example.com; @kirkmaltais)