GRAIN HIGHLIGHTS : Top Stories of the Day

TOP STORIES:

Corn Sails Higher as USDA Cuts Production Forecast

Corn for December delivery rose 3.8% to $4.23 a bushel, on the Chicago Board of Trade Tuesday, jumping after the USDA released its WASDE report at noon which showed a bigger-than-expected decrease in U.S. corn production, as well as production for other crops.

Soybeans for January delivery rose 3.2% to $11.46 a bushel.

Wheat for December delivery rose 1.8% to $6.08 1/2 a bushel.

Price Shock to Grains Futures May Not Stick -- Market Talk

12:29 ET - The big uptick in CBOT grains futures seen after the USDA released its Wasde report may not last long, Doug Bergman of RCM Alternatives says. "Corn balance sheets still aren't overly tight, so look for the corn market to lag the bean market, moving forward," Bergman says. "There is always risk of a buy the rumor/sell the fact trade as the markets were firm into the report today with a lot of speculative interest, but pull-backs are expected to be well-supported." Corn and soybean futures shoot up following the report, with those most-active contracts now up 3.1% and 2.9%, respectively. ([e-mail]; @kirkmaltais)

STORIES OF INTEREST:

Export Report Importance Builds For Grains Traders -- Market Talk

13:45 ET - With the USDA bolstering its outlook for export sales strength in its monthly WASDE report released this afternoon, grains traders are now watching for notices from the USDA to confirm if China and other nations will help make this a reality. "Going forward, these weekly export sales reports are going to be very important," says Jason Britt of Central States Commodities. This morning, the USDA announced a flash sale of 130,000 metric tons of soybeans to South Korea. Sales to China are going to be considered the most valuable, traders say. CBOT soybean futures are up 3.8% Tuesday. ([e-mail]; @kirkmaltais)

Soybean Carryouts Indicative of Higher Prices Ahead -- Market Talk

13:40 ET - The USDA's outlook for soybean export demand continues to be strong, with the agency adjusting its ending stocks projection for US soybeans down to 190M bushels in the 2020/21 marketing year. That's down 100M bushels from the USDA's projection last month. According to some traders, carryouts are now getting low enough that some scarcity will be introduced into soybeans pricing. "A lot of it boils down to China," Don Roose of US Commodities says. If South American weather continues to be unsupportive for their regional crops, then China may have to fulfil its bean needs by purchasing US product. However, if prices rise too high, China could cancel some of their US purchases, or sell back into the export market themselves, Roose says. ([e-mail]; @kirkmaltais)

Beyond Meat Strikes Pizza Hut Deal -- Market Talk

1120 GMT - Pizza Hut says it's adding plant-based Italian "sausage" made by Beyond Meat Inc. to two of its pan pizzas nationally. The imitation sausage is co-created by Pizza Hut and Beyond Meat, similar to the manufacturer's approach with McDonald's Corp. on a new offering. McDonald's said this week it's starting a "McPlant" category of menu items, and Beyond Meat said it's making patties as part of it. ([e-mail] ; @heatherhaddon)

Sales Slide Pressures Beyond Meat Shares -- Market Talk

0959 ET - Beyond Meat shares plunge 21% as investors ponder what to make of the faux meat maker's surprise 3Q loss, and uncertainty over its trajectory as Covid-19 cases surge around the country. While CEO Ethan Brown Monday evening said there were reasons to be hopeful for sales in the current quarter, he resisted making any firm projections as the pandemic holds down restaurant traffic and a springtime supermarket sales boost fades. Details also remain scant around Beyond's benefits from helping produce a plant-based burger for McDonald's planned "McPlant" launch. "We are firing in the dark right now when modeling this company," JPMorgan analysts complain in a research note, as Beyond shares fall to the lowest levels since early May. ([e-mail]; @jacobbunge)

THE MARKETS:

Hog Futures Finish Down -- Market Talk

15:03 ET - Lean hogs futures trading on the CME closed down 0.7% to 65.125 cents per pound. In the past three weeks, hog futures have shed 8.8% -- and according to the USDA, prices still have a ways to go before hitting their projected average price of 47 cents per pound. Pork prices in China contain one explanation for why the demand prospects for US pork look to stay limited. "The fall in pork and food prices in general indicates that China has managed itself well through the ASF and Covid-19 crises," says AgResource. Meanwhile, live cattle futures finished up by less than 0.1% to $1.11875 per pound. ([e-mail]; @kirkmaltais)

(END) Dow Jones Newswires

11-10-20 1731ET