GRAIN HIGHLIGHTS : Top Stories of the Day

TOP STORIES:

Corn Outperforms Other Grains on Short Covering

Corn for July delivery rose 0.75% to $3.33 3/4 a bushel Monday on the Chicago Board of Trade amid short covering and favorable weather conditions.

Wheat for July delivery fell 0.73% to $5.11 1/2 a bushel.

Soybeans for July delivery were down 0.35% to $8.64 3/4.

STORIES OF INTEREST:

Brazilian Currency Strengthens, Helps American Farmers -- Market Talk

14:30 ET - The Brazilian real strengths to levels not seen in months, which is a good development for American soy producers, American Farm Bureau Federation's Chief Economist John Newton tells WSJ. As the real gains value, exports become less profitable for Brazilian farmers in their local currency, leading them to ship less of their production overseas. "The weaker the Brazilian real, the worse for the American farmer," Newton said. He warns of other factors at play in global commodity markets, including impact of the coronavirus pandemic on demand. The real trades at 4.88 per dollar, a level not seen since March. ([e-mail]; @ptrevisani)

Grain Inspections Fall Amid U.S.-China Trade Tensions -- Market Talk

11:43 ET - US grain export inspections fell last week from the previous one, while traders watch how Chinese imports react to trade tensions with the US. Soybean export inspections totaled 213,047 metric tons, wheat reached 432,919 metric tons, and corn was 1.1 million metric tons, the USDA said. Demand is seen as improving thanks to lifting Covid-19 lockdowns, but uncertainties arise from fears of a second wave as the disease spreads in emerging markets. "We will also continue to monitor Chinese trade developments as even with heightened tensions between that country and the US, we have seen soybean sales take place," AgriVisor says. ([e-mail]; @ptrevisani)

Brazil Irregular Rain Hits Center-South Winter Corn Crop -- Market Talk

0834 ET - Irregular rain in some parts of Brazil's center-south farming region will reduce the size of the area's winter corn crop to 65.3 million metric tons, according to agricultural consultancy AgRural. The group had previously forecast a crop of 66.7 million tons. A year ago the winter corn crop reached 69.3 million tons, AgRural said. Recent rains in some parts of the center south helped halt the loss of more corn, according to the consultancy. AgRural expects Brazil's total corn crop for the 2019-2020 growing season to reach 96.4 million tons, down from 100 million tons in 2018-2019. ([e-mail])

South Africa, Zambia To Dominate Africa Corn Supplies -- Market Talk

0829 GMT - Corn supplies from South Africa and Zambia will remain significant in 2020-21 marketing year as the two nations brace for good harvests, says Wandile Sihlobo, chief economist at the Agricultural Business Chamber. Both countries are expecting their second-largest corn crop this season, with South Africa's harvest set to rise 30% to 15.6 million tons. Zambia's harvest will likely jump 60% on year to reach 3.4 million tons. South Africa, the continent's top producer could have 2.7 million tons of surplus corn for export while Zambia may ship some 1 million tons. "Unlike other seasons, where some African countries would look outside the continent for supplies in seasons of deficiency, South Africa and Zambia could emerge as key (corn) suppliers," Mr. Sihlobo says. ([e-mail]; @Nicholasbariyo)

THE MARKETS:

Hogs, Cattle Stable Amid Slow Recovery -- Market Talk

16:43 ET - July hogs "are beginning to show some technical positive action," RJO Futures says, noting the packing industry "is making progress but at a slow pace." Prices were stable today, at 53.975 cents per pound. Live cattle were also stable at 96.325 cents per pound. RJO Futures says cattle markets are still weak despite some recent recovery from the worst of the coronavirus-related selloff. ([e-mail]; @ptrevisani)