Soybeans Perk Up on China Tariff Waiver Hopes
December 06 2019 - 4:15PM
Dow Jones News
By Kirk Maltais
--Soybeans for January delivery rose 0.6% to $8.89 1/2 a bushel
on the Chicago Board of Trade on Friday after Chinese state media
reported officials are looking to grant waivers to certain exports
of U.S. soybeans and pork.
--Wheat for March delivery rose 0.1% to $5.24 1/2 a bushel.
--Corn for March delivery was unchanged at $3.76 3/4 a
bushel.
HIGHLIGHTS
Hopeful Sign: China's State Council has started the process to
exempt some U.S.-imported soybeans and pork from punitive tariffs,
the state-run Xinhua News Agency says. U.S. traders saw the news as
positive, signalling a trade deal is close. Without a deal, new
tariffs between the two sides are expected to go into effect on
Dec. 15.
Waiting on WASDE: Corn traded at light volumes, with traders
reluctant to make substantial moves until Tuesday's WASDE. Analysts
polled by The Wall Street Journal expect corn inventories are
expected to drop by over 50 million bushels to just under 1.86
billion. However, even if corn inventories drop significantly more
than that, futures may stay lightly traded next week. "You aren't
going to get a lot of specs looking to buy this puppy on corn left
in the fields over the winter," said Charlie Sernatinger of
ED&F Man Capital. "After all, that is a 'known' fundamental,
and as we all know, 'a known fundamental, is a useless
fundamental.'"
INSIGHT
Oh Canada!: Canadian wheat production is expected to rise to
32.34 million metric tons in 2019, up 32.2 million tons in 2018.
The uptick was one factor keeping a lid on U.S. wheat futures
Friday, although the increase wasn't as much as previously
expected, according to Dan Hueber of the Hueber Report.
Mexico Muscle: Mexico bought 245,872 metric tons of U.S. corn
for the 2019/20 marketing year according to the USDA. Even though
Mexico is the largest consumer of U.S. agriculture, Mexico's corn
purchases come at an important time because traders have been
concerned about the overall level of corn export demand.
AHEAD:
-The USDA releases weekly grain export inspections data at 11
a.m. ET Monday.
-The USDA provides the weekly update on U.S. crop progress at 4
p.m. ET Monday.
-The USDA releases its World Agricultural Supply and Demand
Estimate report at noon Tuesday.
(END) Dow Jones Newswires
December 06, 2019 16:00 ET (21:00 GMT)
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