GRAIN HIGHLIGHTS: Top Stories of the Day
January 23 2018 - 6:02PM
Dow Jones News
TOP STORIES:
Grain, Soybean Futures Trade Sideways
Grain and soybean markets were mixed Tuesday as prices hit
selling pressure and buying interest dried up.
Wheat futures led losses, with the March-dated contract falling
1% to $4.21 1/2 a bushel at the Chicago Board of Trade. March corn
futures fell 0.2% to $3.51 1/4 a bushel. March soybean contracts
rose 0.2% to $9.86 1/4 a bushel.
Up to $800M in Profits at Stake in Monsanto Patent Dispute --
Market Talk
14:49 ET - Monsanto stands to lose $600M to $800M in earnings if
the seed giant can't collect Brazilian royalties on its popular
insect-repelling soybean genes, according to Bernstein analysts.
Monsanto's battling a lawsuit launched by Brazilian farmers
challenging Monsanto's patent for the soybean genetics, and the
company suffered a blow when Brazil's patent office concluded it's
invalid. If the Brazilian court rules against Monsanto, Bernstein
figures seed distributors there may stop paying some royalties to
Monsanto, risking profits on next year's seed sales. Bernstein sees
it as a "minor negative" for Bayer's desire to close its purchase
of Monsanto, but probably not a "linchpin issue." Monsanto shares
rise 0.5%. (jacob.bunge@wsj.com; @jacobbunge)
Some USDA Reports Delayed Due to Shutdown -- Market Talk
11:52 ET - The USDA is pushing back the release of certain
reports due to the temporary government shutdown. The agency will
release its cold storage report, which updates market participants
on stocks of meat, dairy, fruit and vegetables in commercial
freezers, on Wednesday at 3pm ET, a day later. The weekly export
sales report is due on Friday morning rather than Thursday. The
release of its chicken-and-eggs and milk production reports are
also delayed by 24 hours. (benjamin.parkin@wsj.com; @b_parkyn)
STORIES OF INTEREST:
Informa Trims U.S. Corn, Soybean Acreage Forecasts -- Market
Talk
12:35 ET - Private forecaster Informa Economics lowered its
projected corn and soybean plantings for 2018. It trimmed its corn
estimate to 89.179M acres and put its soybean figure at 91.197M.
Rising prices for cotton, sorghum and barley could prompt farmers
to plant more of those crops at the expense of corn and soybeans,
says Michael McDougall of ED&F Man. CBOT March corn futures
fall 0.6% to $3.49 3/4 a bushel. March wheat slides 0.9% to $4.21
3/4 while March soybeans are little changed at $9.84 1/4 a bushel.
(benjamin.parkin@wsj.com; @b_parkyn)
Zambia May Resume Corn Imports As Drought Hits Yields -- Market
Talk
1457 GMT - Zambia will likely resume corn imports for the first
time in a decade due to the anticipated drop in production as
drought ravages farmlands across the country, says Zambia National
Farmers Union. Output may halve to 1.8 million tons in 2018, as
Africa's No.2 copper producer grapples with drought and late
distribution of farming inputs, the group says. Local corn prices
are a main driver of inflation, upon which miners unions peg wage
demands. Zambia, the only Southern African nation to register a
corn surplus in 2016-17 banned exports last year to stock enough
food reserves of the regional staple. But the country now faces the
prospect of sourcing imports from as far as South America as the
regional shortage bites. (Nicholas.Bariyo@wsj.com;
@Nicholasbariyo)
Setback for Monsanto in Brazilian Patent Case -- Market Talk
8:09 ET - Brazil's government agency overseeing industrial
property rights is backing a lawsuit by corn and soybean growers in
the country, challenging the validity of seed giant Monsanto's
patent over insect-repelling soybean seeds, according to the
company. In a lawsuit filed by farmer group Aprosoja-MT, Brazil's
INPI files a submission supporting the farmers, though Monsanto
says the agency issued that opinion without considering INPI
technical staff, who "reached an entirely different conclusion"
when granting the patent in 2012. The seeds have been among
Monsanto's most popular with farmers, expanding to cover tens of
millions of acres in South America since their launch.
(jacob.bunge@wsj.com; @jacobbunge)
THE MARKETS:
Cattle Futures Bounce; Hogs Wobble on Nafta Jitters
Cattle futures climbed to the highest close in 11 weeks,
supported by rising prices for beef and physical cattle.
Cash prices for slaughter-ready cattle jumped around $3 late
last week. Market observers said they expected some of that
strength to carry over into this week, particularly after a
snowstorm in parts of western and northern cattle country disrupted
trade and potentially stressed cattle being fattened in
feedlots.
(END) Dow Jones Newswires
January 23, 2018 17:47 ET (22:47 GMT)
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