Corn Falls as Election Jitters Grow
Corn for December delivery fell 3.5% to $4.01 1/2 a bushel on the Chicago Board of Trade Wednesday as traders hedged their bets and adopted a cautious stance ahead of next week's general election. Soybeans for January delivery fell 2% to $10.54 3/4 a bushel. Wheat for December delivery fell 1.1% to $6.08 3/4 a bushel.
Grain futures trading on the CBOT fell Wednesday, with traders locking in gains from recent rallies, "as fund managers reduce their market risk ahead of next week's U.S. election," said AgResource. The firm also pointed to diminished demand from China and improved world weather forecasts as factors pressuring grains.
The risk-off mentality can be seen in a sharp uptick in the U.S. dollar, with the dollar index trading on the Intercontinental Exchange up 0.5% Wednesday.
Bunge Records 3Q Profit on Strong Agribusiness Results
Bunge Ltd. posted a profit in the latest three-month period, as sales in its agribusiness and edible-oil-products segments grew from a year earlier.
St. Louis-based Bunge on Wednesday reported a third-quarter net profit of $274 million, or $1.84 a share, compared with a net loss of $1.5 billion, or $10.57 a share, a year earlier.
STORIES OF INTEREST:
More Legal Battles Ahead for Weedkiller, Bernstein Says -- Market Talk
1233 ET - Pesticide makers Bayer and BASF cheered the EPA's decision Tuesday to re-approve the companies' dicamba herbicides, which have been blamed for drifting and damaging millions of acres of nearby crops, but analysts at Bernstein say that celebration will be short-lived. The firm says the EPA's new rules for the pesticides won't pass muster with a federal court that last summer ruled the EPA's prior approval of the products overlooked their risks, and Bernstein expects an injunction barring dicamba sales in the next few months. That uncertainty, Bernstein says, may drive more farmers toward a competing crop spray sold by rival chemical producer Corteva. (email@example.com; @jacobbunge)
Ethanol Data Shows Lower Inventory, Higher Production -- Market Talk
1056 ET - Data released by the EIA shows that ethanol inventories in the US are continuing to drop, falling another 120,000 barrels to a total of 19.6 million barrels. It's the lowest US inventories of ethanol have been at since December 2016. Meanwhile, weekly production of ethanol inched higher this week, rising 28,000 barrels to 941,000 barrels per day. Corn futures on the CBOT are trading lower Wednesday as traders pare their risk ahead of next week's election, and a rise in coronavirus infections could impact fuel demand. "The fear is that the increase in Covid infections in the US will hurt energy demand," says Tomm Pfitzenmaier of Summit Commodity Brokerage. (firstname.lastname@example.org; @kirkmaltais)
Pilgrim's Fast-Food Chicken Sales Jump -- Market Talk
16:43 ET - Pilgrim's Pride says chicken demand in the US is recovering from the springtime pandemic hit, and that the company's business from fast-food restaurants in the most recent quarter was stronger than a year ago, along with grocery stores. The Colorado-based company says profits in its Mexico division also topped year-ago results for the quarter ended Sept. 27, despite added costs related to Covid-19. Pilgrim's quarterly net income drops 70% overall, though, due to the company's $110.5M settlement with the Department of Justice over price-fixing charges. Shares jump 6.4% after hours. (email@example.com; @jacobbunge)
Hog Futures Slump For Second Day -- Market Talk
16:19 ET - Lean hog futures trading on the CME drop for a second straight session, falling 1.9% to 66.375 cents per pound. The move in futures is related to a similar drop in pork cutouts, with carcass cutouts shedding roughly $15 per hundredweight in the past five days, or 15.2%, to $83.73 per cwt according to the USDA. Futures values, meanwhile, have fallen 4.6% in that time period. Live cattle futures close trading up 0.6% at $1.04675 per pound. (firstname.lastname@example.org; @kirkmaltais)
(END) Dow Jones Newswires