TOP STORIES:

Dry Argentine Weather Supports Grain and Soybean Prices

Soybean and wheat futures started the week higher, while corn contracts inched lower.

Mounting concerns about dry growing conditions in Argentina and data showing that hedge funds were betting heavily on lower grain and soybean prices prompted some buying on Monday.

'Huge' Cost-Cutting Doable in ADM-Bunge Deal -- Market Talk

11:10 ET - Potential synergies in combining Archer Daniels Midland and Bunge are "huge" on both the cost and revenue sides of the ledger, Vertical Group analysts say. Combining the two agricultural giants would go some way toward addressing overcapacity in grain trading and processing, the firm says in a research note, and would give ADM "greater pricing power" in supply deals with food and livestock companies. While Bunge is likely to continue to interest Glencore, the company is "most valuable to ADM," Vertical Group says, estimating Bunge could fetch more than $100 a share. Bunge up 3% while ADM climbs 2.4%, continuing their rise since WSJ reported Friday that ADM had made a takeover approach to Bunge. (jacob.bunge@wsj.com; @jacobbunge)

STORIES OF INTEREST:

Analysts Talk Up ADM/Bunge Deal -- Market Talk

9:22 ET - Archer Daniels Midland could afford to pay "upwards of $96/share" for rival agricultural giant Bunge, according to Stifel, and a deal could be a "positive catalyst" for ADM at a time when the grain trading and processing sector continues to struggle. Folding Bunge into ADM's global network of grain facilities, port terminals and processing plants would bolster ADM's position in South America and strengthen its processing capabilities in Europe, Stifel analysts say. The Wall Street Journal reported Friday that ADM had made a takeover approach to Bunge, after mining giant Glencore last year confirmed it had also approached Bunge about a deal. Stifel expects Glencore could remain a competitor to own Bunge. (jacob.bunge@wsj.com; @jacobbunge)

Canada Adviser Expects Trump to Pull Out of Nafta -- Market Talk

15:31 ET - A member of Canadian government's advisory panel on Nafta said it's just "a matter of when" President Trump opts to begin U.S. withdrawal from Nafta. "He sees triggering the six-month withdrawal process as the beginning of the negotiations," Rona Ambrose, former senior minister under Conservative PM Stephen Harper, said. In comments to Canada's CTV network, she said the consensus among members of the advisory panel -- made up of politicians from all parties, and business and labor leaders -- is not a matter of "if" Trump withdraws, but "when." She added in her view, U.S. officials are becoming "increasingly inflexible" in order to set the stage for a Nafta withdrawal. She said reports Canada is inflexible on issues related to progressive trade issues like labor and aboriginal rights are "not true." (paul.vieira@wsj.com; @paulvieira)

THE MARKETS:

Late-Week Cattle Trades Boost Futures

Cattle futures bounced after physical cattle prices rose late last week.

Meatpackers and feedyards spent much of last week in a deadlock over slaughter-ready cattle prices, leaving futures traders short of supply-and-demand signals to follow. Late on Friday, however, packers started to buy cattle for $123 per 100 pounds on a live basis and $195 on a dressed basis, several dollars higher than the previous week's average.

(END) Dow Jones Newswires

January 22, 2018 17:37 ET (22:37 GMT)

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