Corn Prices Recover As Demand From China Remains Strong
Corn for July delivery rose 1.4% to $6.52 1/2 a bushel on the Chicago Board of Trade as export demand remains strong and despite concerns about possible acreage increase.
USDA's weekly report showed an increase in grain-export inspections with China once more leading the pack. Corn inspections increased to 74.5 million bushels for the week ended Thursday, up from 67.6 million bushels in the previous week. That's a little below AgResource's forecast of more than 75M bushels. The research firm says it "continues to hear that China remains active in sourcing new crop US origin corn." Export inspections of soybeans and wheat also increased.
China Steps In Again To Buy US Corn -- Market Talk
0942 ET - Chinese buyers ordered 1.7M metric tons of corn, while 128K metric tons were sold to Mexico, both for delivery during the 2021/2022 marketing year, the USDA says. The report extends a buying spree that saw China-bound orders coming in every day of the past week, underpinning markets amid bearish acreage estimates. Corn is up 1% to $6.52 a bushel. (email@example.com; @ptrevisani)
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Wheat Slides as Demand Weakens -- Market Talk
13:32 ET - A "major correction" is underway in wheat futures, as weakening demand offsets lowered production outlook caused by unfavorable weather forecasts, Price Futures says. "The dry weather in ... parts of the Great Plains did not appear to make much difference to Winter Wheat production and yields," the broker says, adding "wheat remains a weather market, but the demand side has been weak." On a more bullish note, Price Futures says corn prices are high, "so demand for feed wheat could increase." Wheat slides 1.1% and corn is up 0.5%. (firstname.lastname@example.org; @ptrevisani)
Cannabis Companies Dial Into Supply -- Market Talk
0909 ET - Cannabis firm Columbia Care says as it reports 1Q results that in Colorado it has been purchasing products from wholesalers in anticipation of expected supply shortages there in the current quarter and 3Q. Meanwhile, Curaleaf Holdings says that it struck an agreement to buy Los Sueños Farms, a company it describes as having the largest outdoor cannabis cultivation company in Colorado with 66 acres of capacity and an indoor operation with 1.8K plants. "The acquisition of Los Sueños will add over 50,000 pounds per year of low-cost wholesale capacity to Curaleaf's footprint in Colorado, Curaleaf CEO Joe Bayern says. The focus by Columbia and Curaleaf on cultivation assets in Colorado is a reminder of the importance of securing marijuana on the supply side as demand grows. (email@example.com; @MicahMaidenberg)
Livestock Prices Steady Amid Cost Concerns -- Market Talk
1454 ET - Livestock prices little changed, with live cattle up 0.04% and hogs down 0.07%, amid concerns about feeding costs. Corn took a beating last week, quelling such concerns somewhat, but now prices are recovering as exports remain strong. "Feed costs are expected to be a significant headwind for feeder cattle prices," says the Steiner Consulting Group. "Feed prices are still considered very high. Feedlots are expected to face negative margins this summer, which may limit the appetite for placements." (firstname.lastname@example.org; @ptrevisani)
(END) Dow Jones Newswires