Corn Higher as Increased Export Demand Confirmed
Corn for March delivery rose 1.2% to $4.33 1/4 a bushel, on the Chicago Board of Trade Monday, after the USDA confirmed more U.S. corn exports being purchased.
Some 334,000 metric tons of U.S. corn exports have been sold to unknown destinations, the USDA confirmed Monday. It's the latest sale of U.S. corn reported by the agency, with the 'unknown destinations' designator commonly used for exports sent to China. Corn futures have also been following soybeans higher amid dry weather in Brazil. "Producers generally have corn to sell, and the outlook from here is only bullish if beans continue to trade higher," said Doug Bergman of RCM Alternatives.
Soybean Futures Again Fail to Break $12 Barrier -- Market Talk
13:35 ET - Soybean futures trading on the CBOT again failed to burst through the $12 per bushel barrier, this despite market sentiment that rains in Brazil over the weekend were not enough to offset the damage being done to soybean crops there. "January soybean futures have been unable to rise above $12 [per bushel] for the 3rd time in the past 10 days," says AgResource. "The Brazilian drought continues to garner the attention of the trade amid deepening crop losses. A 128-129 [million metric ton] Brazilian 2020 soy crop is garnering considerable attention as to how it would impact a US soybean balance sheet that cannot stand any additional demand." The dry weather is also expected to impact Brazilian corn and wheat yields. (email@example.com; @kirkmaltais)
STORIES OF INTEREST:
European Wheat Appears Strong -- Market Talk
12:52 ET - Although winter wheat growing in the US, Russia and Brazil is having issues due to dry weather conditions, wheat in Europe appears to be having an easier time. According to data from the French agricultural ministry, winter barley conditions are 95% good or excellent, up from 79% a year ago. Additionally, planting of the winter wheat crop is at 95%, ahead of last year's 88%. "Weather conditions for winter crops in Europe appear to be a sight better than South America," says Dan Hueber of the Hueber Report. US wheat futures trading on the CBOT are up 0.9%. (firstname.lastname@example.org; @kirkmaltais)
Soybeans Surge as Brazilian Rainfall Less Than Expected -- Market Talk
09:37 ET - Grain futures trading on the CBOT are on the rise in pre-market trading Monday. For soybeans, the main driver is Brazilian rainfall being less than expected over the weekend - bringing the most-active futures contract to close to $12 per bushel overnight. "Soybeans were again the leader in overnight trade as South American rains were less than hoped for in Brazil, while Argentina did receive higher totals," says Karl Setzer of AgriVisor. "Trade will once again closely monitor South American weather during this week's trade." Overnight, soybean futures rose 1.1%, while corn rose 1.2% and wheat climbed 1.3%. (email@example.com; @kirkmaltais)
Total Produce Says Jan-Oct Performance Stayed Positive Despite Pandemic
Total Produce PLC said Monday that its performance for the 10 months ended Oct. 31 remained positive against the backdrop of the pandemic.
The Irish producer of fresh produce said full-year sales, adjusted earnings per share and adjusted earnings before interest, taxes, depreciation and amortization are now expected to come in slightly ahead of 2019's.
Short-Term Demand Supports Cattle Futures -- Market Talk
15:09 ET - Although market signals suggest that beef demand in the next month or so will be weaker than last year, short term appetite for beef is supporting the futures contract currently. "With a supportive USDA report, continued strength in the beef market and supportive outside market forces this morning, the market acts like a short-term low may be in place," says RJO Futures. However, even with the February contract up 2% to $1.129 per pound Monday, the upward momentum isn't expected to last - with traders fearing "that the short-term surge in virus cases will hurt demand into the holiday season." Meanwhile, lean hog futures closed 2.7% higher at 67.125 cents per pound. (firstname.lastname@example.org; @kirkmaltais)
(END) Dow Jones Newswires