Grain Futures Rise on U.S.-China Trade Hopes

Date : 11/22/2019 @ 10:10PM
Source : Dow Jones News

Grain Futures Rise on U.S.-China Trade Hopes

By Allison Prang

 

--Wheat for March delivery rose 1.3% to $5.18 3/4 a bushel on the Chicago Board of Trade on Friday, on renewed hopes that the U.S. and China could resolve their trade conflict.

--Soybeans for January delivery fell 0.4% to $8.97 a bushel.

--Corn for December delivery rose less than 0.1% to $3.68 3/4 a bushel.

 

HIGHLIGHTS

 

Trade Hopes Redux: President Trump's comments underscoring the U.S. and China are close to a more substantial trade deal helped grain futures, said Don Roose, president of US Commodities. Mr. Trump said Friday that antigovernment protests in Hong Kong were a complicating factor, but the trade talks were helping to moderate President Xi Jinping's response to the protesters. Mr. Trump added, "We are also in the process of making the largest trade deal in history and if we could do that it would be great." Mr. Roose said the expiration of options also encouraged traders to buy wheat and corn.

 

INSIGHT

 

Expensive Tastes: U.S. corn prices are too high compared with rival exporting countries to garner a lot of market share, AgriVisor commodity risk analyst Karl Setzer said. "Corn sales remain well below expectations for the marketing year as buyers continue to take their business to Brazil, Argentina and Ukraine," he said.

Against the Grain: The global grain markets outlook appears bearish, Fitch Solutions said, forecasting prices to remain subdued over the coming months despite supply-side disruptions among major exporting countries. "In the U.S., ongoing harvest delays to 2019-2020 corn caused by cold weather has been largely offset by limited demand for U.S. corn exports and record 2019-2020 Ukrainian corn production and exports," Fitch said.

 

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 Bureau of Economic Analysis releases its second estimate of the U.S. GDP for the third quarter of 2019 at 8:30 a.m. ET Wednesday.

--The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. ET Wednesday.

 

--Lucy Craymer contributed to this article.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

November 22, 2019 16:55 ET (21:55 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.


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