Soybeans Higher on Brazilian Weather Woes
Soybeans for January delivery rose 2.1% to $10.86 1/4 a bushel on the Chicago Board of Trade Wednesday as traders monitored weather conditions in southern Brazil that could affect the health of the soybean crop. Corn for December delivery rose 1.1% to $4.05 1/4 a bushel. Wheat for January delivery fell 0.3% to $6.06 a bushel.
U.S. soybean futures got a lift Wednesday from reports of dry weather damaging soybean crops in South America. According to weather firm DTN, while the drier southern areas of Brazil have benefited from recent showers, "relative dryness over the next 5-7 days may be concerning in some areas." AgResource says sold out fund managers are looking to want to reestablish positions.
Why This Agricultural Rebound Looks Different -- Market Talk
13:54 ET - US agricultural markets have bounced at times over the last five years or so, but economic doldrums have been hard to shake for farmers and agribusiness companies. At Ohio-based grain company Andersons, executives say the recent rally in corn, soybean and wheat futures has staying power, mainly because it's driven by demand. Much of that's from China purchases, some of which are record-high, but Andersons CEO Patrick Bowe says corn-based ethanol production is set to rise if people begin driving more, and continued need for animal feed from livestock producers is helping support prices. "People are in a much better position," he says on the quarterly call. Shares sink 16%. (firstname.lastname@example.org; @jacobbunge)
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Farm Group Bemoans US Pull Out from Paris Climate Accord -- Market Talk
0939 ET - Fear over stricter environmental regulations was one reason many farmers backed President Trump in the election, but some farmers want to see more decisive government action on climate change. The Washington-based National Farmers Union blasts the Trump administration's formal exit Wednesday from the Paris Climate Agreement, dismissing the president's past warnings of lost jobs and shuttered factories arising from the pact. The NFU, which backed the climate deal when it was finalized in 2015, said it is a necessary step toward combating increasingly common wildfires, droughts and floods, and that US work toward the deal's goals would have created new jobs and helped revitalize rural economies. (email@example.com; @jacobbunge)
Hog Futures Perk Higher -- Market Talk
15:01 ET - Lean hog futures trading on the CME finished up 1.5% at 66.35 cents per pound, following cutout prices higher. Prices for pork carcass cutouts rose 75 cents per hundredweight today, making it $83.74 per cwt today. Despite today's uptick, futures prices and cutout prices have been on the decline in recent weeks - with hog futures down 7.1% in the past two weeks. Meanwhile, cattle futures closed up 0.1% to $1.07875 per pound. (firstname.lastname@example.org; @kirkmaltais)
(END) Dow Jones Newswires