Soybeans Stay Afloat on Indications of Stronger Demand
November 15 2019 - 4:46PM
Dow Jones News
By Kirk Maltais
--Soybeans for January delivery rose 0.2% to $9.18 1/4 a bushel
on the Chicago Board of Trade on Friday on a trifecta of solid
export sales, a record soybean crush and positive comments about
U.S.-China trade talks by a White House official.
--Wheat for December delivery fell 1% to $5.02 3/4 a bushel.
--Corn for December delivery lost 1.2% to $3.71 1/4 a
bushel.
HIGHLIGHTS
China Buying Beans: Net soybean export sales totaled 1.25
million metric tons last week, with China accounting for 60%.
Another positive sign of demand was the October soybean crush,
which reached an all-time high of 175.4 million bushels, according
to the National Oilseed Processors Association.
High Hopes: White House economic adviser Larry Kudlow said
President Trump "likes what he sees" in trade negotiations between
the U.S. and China, even if a "Phase One" deal has yet to be
signed. Grains traders have been looking for any sign that the
nearly two-year-old dispute is nearing an end.
Wheat's Weak Week: New export sales for U.S. wheat and corn
remained weak. For wheat, new sales totaled 238,600 metric tons,
down 34% from last week and 37% off from the prior four-week
average. Corn sales totaled 581,600 tons, within analyst
expectations but traders seemed unimpressed. Analysts polled by The
Wall Street Journal had expected wheat exports between 250,000 tons
and 500,000 tons and corn at 400,000 tons to 800,000 tons.
INSIGHT
U.S. Corn Crimp: Corn futures have fallen 7.5% in the past
month, amid a bearish demand picture in the U.S. "There's been a
consistent mantra in the corn market this year that demand is
poor," said Arlan Suderman of INTL FCStone. "It is true that U.S.
demand is soft, but globally we are still consuming more corn than
we produce on an annual basis."
More Help for Farmers: The USDA has determined that farmers need
another round of aid. Farmers will get 25% of the $14.5 billion
promised under the Market Facilitation Program, aimed at easing the
impact of the U.S.-China trade war. Based on the effects of the
first round of aid, the latest funds are likely to help farmers
stay afloat while waiting for the world's two largest economies to
sign a deal.
AHEAD
--The USDA releases its weekly grain export inspections data at
11 a.m. ET Monday.
--The USDA provides its weekly update on U.S. crop progress at 4
p.m. ET Monday.
--The EIA releases its weekly update on ethanol production and
inventories at 10:30 a.m. ET Wednesday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
November 15, 2019 16:31 ET (21:31 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.