Corn Rises as Ethanol Production Hits Pre-Pandemic Levels
Corn for July delivery rose 1.6% to $6.90 3/4 a bushel on the Chicago Board of Trade Wednesday as U.S. daily ethanol production exceeded analyst expectations and hit levels unseen since before the Covid-19 pandemic. Wheat for July delivery fell 0.4% to $6.82 1/4 a bushel. Soybeans for July delivery fell 1.1% to $15.62 1/2 a bushel.
Corn futures on the CBOT got a lift from a stronger-than-expected ethanol production report from the EIA. U.S. ethanol production rose to 1.067 million barrels per day for the week ended June 4, up 33,000 barrels per day from last week's report. It's the highest daily production since February 2020, according to the EIA. "Ethanol production in the past four weeks have been great," said Rich Nelson of Allendale Inc. "We are running about 50 million bushels over USDA's hopes right now." Tomorrow's WASDE report from the USDA may confirm this uptick in ethanol demand, which could squeeze already-limited supplies for U.S. corn, said Mr. Nelson.
Grain Export Sales Look to Stay Steady -- Market Talk
1338 ET - Export sales of US grains are expected to stay relatively on-par with the previous week's sales figures, according to grains traders surveyed by The Wall Street Journal this week. Traders forecast wheat sales to land anywhere between 200,000 metric tons and 450,000 tons, corn sales between 400,000 tons and 1 million tons, and soybeans between 100,000 tons and 400,000 tons. For all three crops, these ranges would make the totals similar to those of last week's report. For corn, the total is expected to be well down from 6.25 million tons reported two weeks ago -- as China has stayed largely absent from purchasing new corn exports since maintaining a big presence in May. (email@example.com; @kirkmaltais)
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Campbell Says Inflation Weighed on Quarterly Profit
Campbell Soup Co. said inflationary pressures hampered profits during its latest quarter and sales fell, another sign of how food manufacturers are facing a fresh set of challenges as the U.S. economy returns to more normal conditions.
The company behind its namesake soups, snacking products like Goldfish crackers and other food items on Wednesday reported $160 million in net income for its quarter that ended in early May, down from $168 million for the year-earlier period.
Departure From Heat in Crop-Growing Areas Unlikely to Persist -- Market Talk
12:45 ET - The recent spate of rainfall seen in certain US crop-growing areas is unlikely to last for long, instead giving way to hot and dry conditions, says Arlan Suderman of StoneX. "There is a cool down coming mid-month, but the bulk of the below-normal readings are expected east of the core high-production counties of the Midwest, with the majority of the high-producing counties continuing to lean hot and dry," says Suderman. "There will be storm clusters that develop from time to time, but the overall bias continues, which does not favor trend yields." (firstname.lastname@example.org; @kirkmaltais)
Cattle Turns Higher to Close Day -- Market Talk
15:35 ET - After trading lower earlier today, live cattle futures turned the corner, closing up 0.4% at $1.18275 per pound. The uptick comes after cattle futures sold off post-Memorial Day weekend, and also comes despite boxed beef values mostly falling today--with the current cutout value down $1.71 per hundredweight to $220.78 per cwt, according to the USDA. Meanwhile, lean hog futures turned lower after having an up day yesterday--with the most-active contract closing down 0.3% to $1.215 per pound. (email@example.com; @kirkmaltais)
(END) Dow Jones Newswires