GRAIN HIGHLIGHTS : Top Stories of the Day

TOP STORIES:

Corn Rises as Funds Return to Buying Grains

Corn for March delivery rose 1.7% to $5.52 a bushel on the Chicago Board of Trade Wednesday, with managed money investors going back to buying grains futures with an eye toward more near-term China interest. Soybeans for March delivery were up 1.2% at $13.71 1/4 a bushel. Wheat for March delivery rose 0.5% to $6.48 1/4 a bushel.

After briefly pulling back from the grains complex, fund investors have returned to buying corn and soybeans Wednesday amid market speculation that even though the USDA hasn't confirmed any new large flash sales to China this week, they may soon. "Corn followed [soy]meal higher with Gulf sources suggesting that China had shown new interest in U.S. corn on the break," said AgResource.

Ethanol Inventories Return to Early Pandemic Highs -- Market Talk

1110 ET - US ethanol inventories have returned to highs last seen in the early days of the Covid-19 pandemic, according to data from the EIA. The EIA reports that ethanol inventories rose 714,000 barrels in the past week to 24.32 million barrels -- the highest inventories have been since early May. The inventory build-up appears to show the effect of coronavirus on people using their vehicles regularly. Meanwhile, ethanol production only inched up 3,000 barrels daily to 936,000 barrels per day. ([e-mail]; @kirkmaltais)

STORIES OF INTEREST:

For Food Distributors, A Vaccine Waiting Game -- Market Talk

0938 ET - One message from distributors that sell to restaurants and other foodservice outlets reporting results this week: it's a waiting game for Covid-19 vaccines. "Until the pace of vaccination picks up dramatically, we do not expect to return to a more normal operating run rate," Performance Food Group CEO George Holm says on a call about fiscal 2Q results. And yesterday, Sysco finance chief Aaron Alt told investors it will battle "week by week, region by region" for the next couple of quarters until vaccination is widespread. ([e-mail]; @MicahMaidenberg)

Nestle's Organic Growth, Margins Would Benefit From Bottled-Water Sale -- Market Talk

1221 GMT - Nestle's potential sale of its North American bottled-water business would be positive for its organic growth and margin profiles, UBS says. The business has reduced around 30 basis points of the group's organic growth and about 40 basis points of its margin in 2019, analysts at the bank say. A disposal would allow the Swiss food-and-beverage giant to reach its medium-term organic growth target of mid-single digits more comfortably as well as increase its digital and sustainability investments, UBS says. ([e-mail])

Kellogg Launching Start-up Innovation Challenge -- Market Talk

12:27 ET - Kellogg says it is launching an Innovation Challenge for start-ups. The company says it is seeking "unique plant-based ideas that support digestive wellness." The Innovation Challenge will be hosted at the virtual Future Food-Tech innovation conference. D'Anne Hayman, Kellog vice president of global innovation and nutrition, will judge the finalist entries with Simon Burton, managing director of eighteen94 Capital. Kellogg established eighteen94 in 2016 to invest in companies pursuing food innovation. "Kellogg is looking for start-ups to apply their entrepreneurial and scientific skills to show how their technology could help solve the problem and deliver tangible value to consumers," the food company says. ([e-mail])

THE MARKETS:

Hogs Climb for Second Day -- Market Talk

1513 ET - Lean hog futures on the CME finished up 1.4% to 79.2 cents per pound. That makes it a 3% gain for hogs so far this month. Pork cutouts were up slightly Wednesday, with the carcass price up 54 cents per hundredweight, to $80.50 per cwt. Bellies were also higher, up $11.34 per cwt to $128.16 per cwt. Meanwhile, live cattle futures closed trading Wednesday down 0.1% to $1.2245 per pound. ([e-mail]; @kirkmaltais)

(END) Dow Jones Newswires

02-03-21 1741ET