GRAIN HIGHLIGHTS : Top Stories of the Day

TOP STORIES:

Soybeans Up Amid South American Supply Questions

Soybeans for November delivery rose 0.8% to $4.05 1/4 a bushel on the Chicago Board of Trade Tuesday on speculation that dry weather in South America may lead to a decrease in the regions' soybean yields.

Corn for December delivery rose 0.4% to $10.54 1/4 a bushel.

Wheat for December delivery rose 0.3% to $6.27 a bushel.

STORIES OF INTEREST:

South American Planting Delays Fuel Soybeans -- Market Talk

09:28 ET - Soybean futures on the CBOT trade 0.7% higher pre-market, driven in large part by both South American planting delays as well as strong export sales in the US, says Tomm Pfitzenmaier of Summit Commodity Brokerage. "But as long as there are weather concerns in South America and as long as China continues to buy US beans, the bulls will continue to control the soybean market," says Pfitzenmaier. Dry conditions in South America have made it difficult for farmers because the crops they planted need moisture to germinate. However, grain traders see soybean futures as being close to their point of resistance--and may succumb to the pressure of traders taking profits, he says. Meanwhile, corn futures are up 0.1%, and wheat up 0.8%. ([e-mail]; @kirkmaltais)

Weather Losing Influence on US Grains Futures -- Market Talk

08:57 ET - The weather market of recent months is losing its hold of grain traders, says Karl Setzer of AgriVisor. "While US weather is losing its influence on the commodity market conditions are still being monitored," says Setzer. The reason for this is the advanced pace of the US grains harvest, Setzer says. According to the USDA's latest crop progress report released late yesterday, the US corn harvest is 60% complete versus a five-year average of 43%. The soybean harvest is 75% done versus a 5-year average of 58% -- and yet, grains futures on the CBOT were up in pre-market trading. Movements of other comparable future contracts around the world appear to be the main driver of grains futures movement pre-market Tuesday. ([e-mail]; @kirkmaltais)

EU's Auto, Agriculture, Chemical Sectors Seen Worst-Hit in Case of No-Deal Brexit -- Market Talk

1410 GMT - The EU's agriculture, automotive and the chemical industries are likely to experience the greatest disruption in the event of a no-deal Brexit, says Timme Spakman, international trade analysis economist at ING. Similarly, countries like Ireland, Belgium and the Netherlands would be the most affected due to the relatively sizable amount of trade between them and the U.K. The large economic volatility caused by the Covid-19 pandemic would make the economic hit on the EU less noticeable, Spakman says, but the introduction of tariffs would have a negative impact. "Together with large downside risks related to the second wave of the coronavirus, a no-deal Brexit will make for a very volatile start to 2021 for the EU economy," he says. ([e-mail])

China's Corn Imports Not Necessarily Its Consumption Less Production -- Market Talk

0544 GMT - China's corn imports will not necessarily be the country's consumption minus domestic production, says Darin Friedrichs; "if it's 30 million tons, that doesn't mean the government is going to suddenly import 30 million tons to fill that shortfall. It could just let the market work." He notes that if prices in China remain very elevated then it will squeeze some industrial users who will then reduce their consumption. Dalian Commodity Exchange front-month corn is currently trading up CNY3 at CNY2,652 a metric ton. ( [e-mail] )

THE MARKETS:

Hog Futures Down as Chinese Pork Production Rises -- Market Talk

15:18 ET - After rising 13.2% since the start of the month, most-active lean hog futures trading on the CME closed trading Tuesday down 3.1% to 69.25 cents per pound. The decline in futures came as China announced that its domestic pork production has jumped in an effort to make up for its staggering losses from the African swine fever epidemic among its hog herds. "Chinese pork output for the 3rd quarter showed an 18% increase from the same quarter a year ago," says Karl Setzer of AgriVisor. "This is the first quarter on quarter increase in Chinese pork production since prior to the African Swine Fever outbreak." Meanwhile, live cattle futures on the CME closed up 0.3% to $1.0545 per pound. ([e-mail]; @kirkmaltais)

(END) Dow Jones Newswires

10-20-20 1740ET