TOP STORIES:

Wheat Rises to Two-Month High

Wheat for March delivery rose 2.1% to $6.29 3/4 a bushel, on the Chicago Board of Trade Wednesday, the highest wheat has traded at since late October amid strong winds in the U.S. Midwest. Corn for March delivery rose 0.9% to $4.47 1/4 a bushel. Soybeans for March delivery rose 0.8% to $12.60 a bushel.

Wheat futures traded at their highest level since October on Wednesday, due in part to strong winds hitting the U.S. Plains. "Wheat prices are also posting double-digit gains today, with Russian export targets being lowered and with strong dry winds now buffeting much of the U.S. central and northern Plains hard red winter wheat belt," said Arlan Suderman of StoneX. In the western Midwest, blizzard conditions are expected later this week, according to DTN.

Domestic Grain Shipments Rise -- Market Talk

14:15 ET - Grain shipments in the US are up slightly from last week, the USDA says in its weekly grains transportation report, which was released early ahead of Christmas. According to the USDA, US Class I railroads originated 28,390 grain carloads during the week ending Dec. 12, up 2% from the previous week and 37% more than last year. However, barge movements are down 11% from the previous week, totaling 996,816 metric tons, which is more than double from the same time last year. Indications of higher domestic movement of grains are bullish indicators for CBOT futures. (kirk.maltais@wsj.com; @kirkmaltais)

STORIES OF INTEREST:

Restaurants Brace for Tough Winter After Congress Spurns Cash Grants

Many restaurant owners fear a bleak winter after their priority--cash grants to keep their businesses alive while many dining rooms are closed--wasn't included in the roughly $900 billion coronavirus relief bill approved by Congress this week.

The industry got significant help, including another round of Paycheck Protection Program loans, an expanded tax credit for retaining employees and the full deduction for business meals that President Trump had championed. But those supports work best for businesses with customers, not those with stunted sales due to cratering demand or local coronavirus restrictions.

Agriculture Industry Bets on a New Cash Crop: Carbon

U.S. farmers make their living raising crops from the soil each year. Now, some are getting paid for putting something back into their fields: carbon.

Big agriculture companies including Bayer AG, Nutrien Ltd. and Cargill Inc. are jockeying with startups to encourage crop producers to adopt climate-friendly practices and develop farming-driven carbon markets. Those efforts would let retailers, food makers and other companies offset their greenhouse gas emissions by paying farmers for their fields' capacity to withdraw carbon dioxide from the atmosphere and trap it in the soil.

THE MARKETS:

Livestock Futures Finish Higher -- Market Talk

15:14 ET - Livestock futures on the CME finished higher - with most-active live cattle futures gaining 1.1% to $1.14275 per pound, while lean hog futures closed up 2.8% at 67.85 cents per pound. This morning's export sales report from the USDA showed that while 2020 sales are diminished, sales for 2021 are picking up steam. "Meat sales for the week were also mixed with more interest being shown for next year than 2020," says Karl Setzer of AgriVisor. Pork exports totaled 16,300 metric tons for 2020, and 23,400 tons for 2021. Beef exports totaled 6,000 tons for 2020, with 7,200 tons for 2021. (kirk.maltais@wsj.com; @kirkmaltais)

(END) Dow Jones Newswires

12-23-20 1700ET