Wheat Futures Drop on Hefty Canadian Crop Outlook
Wheat for March delivery fell 1.5% to $5.75 1/2 a bushel, on the Chicago Board of Trade on Friday in response to a new report that Canadian wheat production is expected to hit a seven-year high.
New data from Statcan projected Canadian wheat production at 35.2 million metric tons, the highest in seven years. Indications of ample supplies of the grain globally are placing pressure on wheat futures. "With U.S. wheat areas expected to catch moisture over the next week, the wheat market is breaking down and starting a lower trend," said Doug Bergman of RCM Alternatives.
Brazil 2020-2021 Soybean Crop Already More Than Half Sold -- Market Talk
11:00 ET - Brazilian farmers had already sold 56.5% of their expected soybean crop for the 2020-2021 growing season by Dec. 4, well above the average for the date of 34.5% and above the 37.8% on the same date last year, according to agricultural consultancy Safras & Mercado. Safras has forecast what would be a record soybean crop of 133.5M metric tons for Brazil for the 2020-2021 season, which is currently underway, and 75.4 million tons of soybeans have already been sold, according to the group's survey. Brazil will this year again outproduce the US, until recently the world's top soybean producer, according to the USDA. (email@example.com)
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USDA Reports New Export Sales to Mexico -- Market Talk
09:29 ET - New export sales of US corn to Mexico have been reported by the USDA Friday, with 182,020 metric tons sold. News of the sale is unlikely to galvanize any new buying on the CBOT Friday, as grains traders had anticipated that the USDA might confirm new buying of corn and soybeans by China today. "Traders are disappointed China is staying away from the US market as the USD trends lower," says Terry Reilly of Futures International. Overnight, corn futures fell 0.6%, soybeans dropped 0.1%, and wheat fell 0.7%. (firstname.lastname@example.org; @kirkmaltais)
Soy Oil Bucks Trend of Grains Futures -- Market Talk
09:09 ET - While grains on the CBOT trade lower pre-market Friday, soy oil futures are up 1.5%--following Asian palm oil futures higher on tightening supplies. The Malaysian contract closed at roughly 3,437 Malaysian ringgits per metric ton, and may have more upside left. "A virtual palm oil conference produced analysis forecasting that spot futures could reach over 4,000 RM/MT in early 2021 before seasonally retreating," says AgResource. (email@example.com, @kirkmaltais)
Livestock Pares Losses as Cutouts Rise -- Market Talk
15:27 ET - Livestock futures finished lower, but not as far lower as they opened the day. Live cattle futures fell 0.2% to $1.124 per pound, while lean hog futures finished down 0.5% to 66.575 cents per pound. Possibly providing support for futures is the uptick in cutout prices -- with pork carcass cutouts up $3.49 per hundredweight to $79.94 per cwt, according to the USDA. Hams also shot up today, rising $12.48 per cwt to $91.69 per cwt. Meanwhile, select beef cutouts were also higher as of this morning. (firstname.lastname@example.org; @kirkmaltais)
(END) Dow Jones Newswires