GRAIN HIGHLIGHTS : Top Stories of the Day

TOP STORIES:

Corn Rises to 7-Year High as WASDE Rally Continues

Corn for March delivery rose 1.4% to $5.24 1/2 a bushel on the Chicago Board of Trade Wednesday as yesterday's data from the USDA fueled a rally. Wheat for March delivery fell 0.7% to $6.60 1/2 a bushel. Soybeans for March delivery fell 0.9% to $14.06 1/4 a bushel.

After closing limit-up yesterday, corn futures on the CBOT maintained upward momentum today. The main driver continues to be yesterday's USDA data showing corn ending stocks falling to their lowest level in 7 years. "The USDA had already been expected to paint a tighter picture of the situation on the grain and oilseed markets in its latest forecasts, but the extent of the adjustments has come as a surprise nonetheless," said Commerzbank. The continuing climb brings corn prices to their highest levels since 2013.

Farm Lawsuit Alleges Collusion Against Startups -- Market Talk

0841 ET - Antitrust pressure increases on the US agricultural sector, with a new lawsuit alleging that big crop seed and pesticide suppliers colluded to keep prices high by refusing to sell to online platforms that advertise lower prices. A lawsuit filed in a federal court in Illinois accuses Bayer, Corteva, Syngenta and others of a coordinated "boycott" of nascent agricultural e-commerce companies Farmers Business Network and AgVend, and alleges that reduced competition meant higher prices for seed and pesticides. Spokesmen for the defendant companies said the charges had no merit, that farm supply markets were competitive, and that the companies would defend themselves. The Wall Street Journal last year reported how FBN's plan to create an Amazon-like market for farm supplies had met stiff pushback from established industry players. ([e-mail]; @jacobbunge)

STORIES OF INTEREST:

US Ethanol Inventories Keep Rising -- Market Talk

12:13 ET - The prospects for the US ethanol industry in 2021 are largely hinged on how the US disseminates the coronavirus vaccine and if the pandemic ends, thus allowing consumers to travel freely in their vehicles again. However, until then, US ethanol continues to be underwater--with inventories rising another 408,000 barrels to 23.69M barrels this week, according EIA data. That's the highest they've been early May last year. Even so, the agricultural market is optimistic that US ethanol will bounce back this year. "For our clients, for the first time in awhile, there's a bullish sentiment among them," says Brian Philpot, CEO of AgAmerica Lending. ([e-mail]; @kirkmaltais)

USDA Announces New Flash Sales of Soybeans -- Market Talk

09:38 ET - The USDA confirmed this morning a new flash sale of soybeans--with 464,300 metric tons sold to unknown destinations. Of that, 396,300 tons are being delivered in the 2020/21 marketing year, while the remainder is being delivered in 2021/22. The large delivery comes as talk about demand rationing is strong among grain traders, after yesterday's WASDE report showed US ending stocks growing smaller. "With China still actively looking to buy US beans and crushers still operating with positive margins, prices still need to go higher to slow demand," says Doug Bergman of RCM Alternatives. ([e-mail]; @kirkmaltais)

Brexit May Cause UK Food Suppliers to Lose Export Trade -- Market Talk

1609 GMT - Problems facing the U.K. food industry and grocers in supplying products to Northern Ireland following the U.K.'s EU departure could be just the tip of the Brexit iceberg, Oghma Partners says. With Northern Ireland replicating EU rules, the difficulties emerging in supplying the province are the 'canary in the coal mine' for supply problems into the greater EU single market, the corporate-finance house says. "For the food industry, the disruption is an unwelcome and unnecessary challenge on top of Covid-19 problems," says Oghma's Mark Lynch. "Without a work-around solution--an acceptance that U.K.-EU farming practices are equivalent and that [U.K.] rules won't diverge [from those of] the EU--it seems some food export markets will be lost forever."([e-mail])

THE MARKETS:

Hog Futures Extend Decline -- Market Talk

15:24 ET - Lean hog futures on the CME down again Wednesday, with the most-active contract off 2.4% to 66.85 cents per pound. This makes it 7 out of the last 8 sessions that hog futures dropped--a 6.4% decline. Pork cutouts have also fallen, with pork bellies shaving 10.5% in that time period. Live cattle futures also losing ground Wednesday, dropping 0.2% to $1.1225 per pound. ([e-mail]; @kirkmaltais)

(END) Dow Jones Newswires

01-13-21 1701ET