Soybeans Rise as Traders Anticipate Growth Concerns
June 17 2019 - 4:32PM
Dow Jones News
By Kirk Maltais
--Soybeans for July delivery gained 1.8% to settle at $9.12 3/4
a bushel on the Chicago Board of Trade on Monday, as traders
appeared to be covering shorts on concerns that wet conditions
could delay planting.
--Corn for July delivery rose 0.4% to $4.54 3/4 a bushel.
--Wheat for July delivery rose 0.2% to $5.39 1/2 a bushel.
HIGHLIGHTS
Break Out: Soybeans surged past the $9-a-bushel mark to hit
their highest level in more than two months. Traders appear to
becoming more interested in soybeans now that the wheat and corn
crops are mostly planted. "Funds are likely to slow their
aggressive purchases of corn/wheat heading into the end of June,"
AgResource said. Forecasters are calling for moderate to heavy rain
in all but the northern Midwest over the next seven days.
Pause Button: Last week's rally in corn futures took a break to
allow traders to lock in profits. "It's probably just a sense of
exhaustion," says Dan Hueber of the Hueber Report. "[Corn futures]
are going to give and take from here, this puts a little dose of
reality back in there."
Crush Misses Estimates: The amount of soybeans crushed in May
totaled 154.796 million bushels, down from April's 159.99 million
bushels and about 5% below the same time last year, according to
data from the National Oilseed Processors Association. Analyst
estimates for this month averaged 162.474 million bushels.
INSIGHT
The Cow's in the Corn: August live cattle futures rose courtesy
of the milquetoast corn prices. The two markets have been
especially linked by traders in the past week, with livestock
traders viewing higher feedstock prices as bearish for cattle. Live
cattle futures finished trading Monday up 1.3% at $1.05625 a
pound.
Inspections: Grain export inspections clocked in on the low end
of trader expectations this week, according to USDA data. For
soybeans, China remains the main destination, which may inspire
some bullish sentiment for traders worn out by the trade dispute
between the U.S. and China. According to the report, 274,918 metric
tons of beans were destined for China, out of the 675,302 tons
inspected.
Corteva Surges: Corteva led the S&P 500 higher, gaining 2.6%
to $25.85 after Deutsche Bank upgraded the agriculture company to
buy from hold. "The primary reason [for shares losing 11% since
trading began June 1] is an unprecedented U.S. growing season due
to record rainfall and flooding in the Midwest," analysts said,
adding that U.S.-China trade tensions and perfluorooctanoic acid
liabilities also weigh on the stock.
AHEAD
--The EIA releases its weekly update on ethanol production and
inventories at 10:30 a.m. EDT on Wednesday.
--The USDA releases its export sales report at 8:30 a.m. EDT
Thursday.
--Francesca Fontana contributed to this article.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
June 17, 2019 16:17 ET (20:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.