Wheat Rebounds on Higher Buying Interest
Wheat for March delivery rose 2% to $5.88 1/2 a bushel on the Chicago Board of Trade Wednesday, with grains traders taking the opportunity to restock their grain inventories after the recent dip in wheat prices. Corn for March delivery rose 0.7% to $4.23 3/4 a bushel. Soybeans for January delivery fell 0.8% to $11.53 a bushel.
Wheat futures trading on the CBOT have bounced back after shedding 5% in the past two days. Buying interest among end users have returned amid indications of lacking supplies.
"Many of our mills were hand-to-mouth on supplies and are anxious to buy the breaks," said Arlan Suderman of StoneX. "We're seeing end-user buying return to the market, taking advantage of the recent break in prices."
US-China Trade Deal to Stay in Place Under Biden -- Market Talk
09:36 ET - The phase one trade agreement looks to stay in place following the inauguration of President-elect Biden, at least in the short-term. Speaking to the New York Times, Biden says that his administration will not immediately roll back tariffs or alter the terms of the current trade deal between the US and China, adding that the US needs to "regain leverage" to bring to negotiations. As it stands now, China is behind on its promised agricultural purchases, leaving grains traders eyeing how Biden will address this. CBOT corn and soybean futures are down in pre-market trading Wednesday. (firstname.lastname@example.org; @kirkmaltais)
STORIES OF INTEREST:
Mondelez Approves $4 Billion Share Buyback Increase, Extends Plan by 3 Years
Mondelez International Inc. said Wednesday that it has extended its share repurchase program by three years and increased its scope by $4 billion.
The Chicago, Illinois-based company said that board approved to increase the scale of the repurchase program by $4 billion, which authorizes the board to repurchase a combined $6 billion in total.
Ethanol Supply Hits Highest in 6 Months -- Market Talk
11:24 ET - US ethanol inventories are at their highest level since mid-June, according to data from the EIA. Inventory rose 374,000 barrels, to 21.24M barrels. Meanwhile, ethanol production fell 16,000 barrels per day, down to 974,000 barrels per day--a disappointment for corn traders hoping to see a recovery in ethanol usage continuing despite the resurgence of coronavirus this fall. "Note production is off from 990,000 posted last week, which hit highest level since when energy demand destruction significantly increased back in late March 2020," says Terry Reilly of Futures International. (email@example.com; @kirkmaltais)
US Farm Incomes to Rise to Highest Level in 7 Years -- Market Talk
1138 ET - US farm incomes will surge 43% to the highest level since 2013, according to a US Department of Agriculture forecast. Net farm income will top $119B in 2020, USDA says, as direct government payments double. The payments are projected to soar to a record $46B as the Trump administration provides support to farmers and ranchers dealing with the fallout from the coronavirus pandemic. The payments, which would comprise nearly 40% of farmers' incomes, come as agricultural commodity prices are also rising due to dry weather globally and increased exports to China. Government payments and better prices are helping revive farmers' fortunes following a yearslong downturn in the farm economy that has pushed some out of business. (firstname.lastname@example.org; @jessenewman13)
Cattle Closes Higher as Cutout Spread Widens -- Market Talk
15:18 ET - Live cattle futures trading on the CME finished 0.7% higher at $1.13925 per pound, making it the third day in a row that cattle futures have risen. The uptick in futures coincides with the elevated spread in choice and select cutout values - suggestive of holiday demand incoming for beef. "The holiday season is usually ready to absorb supplies of higher quality beef, due to consumer tastes and preferences during the 4th quarter," says Steiner Consulting Group. "It appears there has been some late seasonal demand for Prime product this year." Meanwhile, lean hog futures finished down 1.3% to 67.875 cents per pound. (email@example.com; @kirkmaltais)
(END) Dow Jones Newswires