TOP STORIES:

Wheat Futures Jump as Inventories Slide to Five-Year Low

Wheat for December delivery rose 5.2% to $5.78 a bushel, on the Chicago Board of Trade on Wednesday in reaction to a more bullish-than-expected grain stocks report from the USDA as well as continued drought issues in Russia. Corn for December delivery rose 3.9% to $3.79 a bushel. Soybeans for November delivery rose 2.9% to $10.22 a bushel.

Old crop wheat stocks totaled 2.16 billion bushels, according to the USDA's quarterly report. While this figure fell within analyst expectations, it's still the lowest wheat inventories have been since 2015. "The lower U.S. wheat stocks amplifies the dryness that is occurring throughout much of Southwestern Russia for the second consecutive year," AgResource said. The two events combined suggest wheat supplies could fall behind demand.

STORIES OF INTEREST:

US Ethanol Production and Inventories Drop -- Market Talk

11:04 ET - US ethanol inventories dropped this week, according to data from the EIA. The EIA pegs inventories at 19.69M barrels, down 306,000 barrels from last week. Previous estimates were for inventories to rise 50,000 to 150,000 barrels, so the consumption of ethanol may push corn futures higher. Meanwhile, production also dropped for the week, falling 25,000 barrels to 881,000 barrels per day. It's the lowest US ethanol production has been since mid-June. (kirk.maltais@wsj.com; @kirkmaltais)

Canada Recovery Threatened By Stiff Second-Wave Headwinds -- Market Talk

11:09 ET - Desjardins Securities strategist Jimmy Jean tells WSJ the sudden, rapid rise in Covid-19 cases in Canada's two biggest provinces threatens the economic recovery underway. Quebec has ordered the shutdown of bars, restaurants and movie theaters in the province's two biggest cities to contain the spread of cases, and he expects Ontario to follow suit with similar measures. The flare-up--in which case growth in Canada ranks among the highest in the Americas--will have an impact on consumer confidence, "and many households can be expected to stay home for some time," Jean says. He adds this could also mark a final blow for a bevy of small businesses that emerged from the spring in a precarious state. "There is a lot at stake." (paul.vieira@wsj.com; @paulvieira)

THE MARKETS:

Lean Hog Futures Halt This Week's Decline, Up 20% For Month -- Market Talk

15:37 ET - Lean hog futures trading on the CME finish the day 1.8% higher at 63.1 cents per pound. The uptick ended two consecutive days of declines for the hog contract, although it is still down 2% for the week. For the month, hog futures are up 20.2%. Meanwhile, live cattle futures finish Wednesday down 0.7% to $1.1235 per pound, this after starting the day higher. For the month, cattle futures are up 1.6%. (kirk.maltais@wsj.com; @kirkmaltais)