Wheat Futures Soar on Australian Supply-Forecast Cut
Wheat for March delivery rose 4.4% to $5.66 3/4 a bushel on the Chicago Board of Trade on Tuesday, in reaction to a reduced wheat harvest estimate in Australia and hope for soon-to-come tariff exemptions from China.
Corn for March delivery rose 1.4% to $3.83 a bushel.
Soybeans for March delivery fell 0.2% to $8.92 1/4 a bushel.
China to Grant Tariff Exemptions on US Farm Products -- Market Talk
09:11 ET - Some 697 US products, including farm goods, will be exempted from tariffs beginning March 2, according to Chinese officials. That is when importers will be allowed to apply for exemptions. This leaves the US market open for new reports of big Chinese purchases from the USDA, as this move suggests that China will act to reach the $36.5B in US agricultural purchases, as promised by phase one of the US-China trade deal. China is expected to be particularly interested in hog and soybean trading opportunities. "This week will be closely watched for any signs of China purchasing any U.S. products," says Allendale. Overnight, wheat and corn futures traded higher, while soybeans were slightly lower. (firstname.lastname@example.org, @kirkmaltais)
STORIES OF INTEREST:
Corn Export Inspections Exceed Expectations -- Market Talk
11:38 ET - Corn export inspections have hit their highest level since May of last year, according to USDA data. Corn inspections totaled 31.3M bushels, which is the highest they've been for the 2019/20 marketing year and the highest since corn inspections exceeded 30M bushels for the 2018/19 marketing year in May. Even so, corn exports are still behind the pace needed to meet the USDA's projection of 1.725B bushels exported for the marketing year, according to analysis from INTL FCStone. Corn futures on the CBOT are up 1%, while soybeans are down 0.1% and wheat is up 2.8%. (email@example.com; @kirkmaltais)
Conagra Calls Out Tough January for Food -- Market Talk
1007 ET - Conagra Brands lowers its expectations for comparable sales for its fiscal year in light of softer sales trends in January, which it said also impacted its competitors. Conagra now projects flat to 0.5% growth in comparable sales, down from its previous forecast of 1% to 1.5% growth. Conagra said recent shipment orders to retailers indicate that the period of softness is over and was just an "air pocket." At an investor presentation this morning, Conagra said it's sales in retailers fell 4.4% in the four weeks ended Jan. 26 as frozen single-serve meals and frozen vegetables were down industry-wide. But for the week ended Feb. 9 that metric rose 5.3%, giving it confidence. Conagra shares fall 7.9%. (firstname.lastname@example.org)
Lawyers Look to Build Herbicide Cases Against Bayer, BASF -- Market Talk
14:17 ET - Plaintiffs' lawyers say they're rapidly signing up new farmer clients to file lawsuits against Bayer and BASF over alleged crop damaged linked to the companies' biotech seeds, engineered to resist the herbicide dicamba. A federal-court jury last weekend awarded $265M to a Missouri peach grower in the first such case to go to trial, and since then, "our phones have not stopped ringing," says Kevin Conway, a lawyer with Peiffer Wolf Carr & Kane, which is representing farmers in the litigation. Conway estimated about 150 farms have sued the companies over dicamba damage so far, with dozens more contacting his firm in the last few days. (email@example.com; @jacobbunge)
Mondelez Benefits From Increase in 'Snacking Occasions' -- Market Talk
13:47 ET - Mondelez International, home to brands including Oreo and Cadbury, reaffirms guidance and discusses its progress at the Consumer Analyst Group of New York Conference. CEO Dirk Van de Put says Mondelez has "moved from a centralized to a local-first commercial approach." The company points to favorable industry trends, noting an 18% increase in average "snacking occasions globally from 2015 to 2017," and that "Gen Z snacks more times a day than anyone else." (firstname.lastname@example.org)
Hog Futures Rebound To Finish Day Higher -- Market Talk
15:29 ET - Lean hog futures on the CME end the trading day 1.9% with a gain to 65.5 cents per pound, which is the highest that hog futures have been in over a week--this after starting trading down 0.2% at the beginning of the day. Hog futures have now finished higher for the third day in a row, making it roughly 3% that hogs have rallied during the span. Meanwhile, live cattle inched up 0.2% to $1.2060 per pound. (email@example.com; @kirkmaltais)