Soybeans Rally After Chinese Officials Confirm Deal On Track

Date : 12/05/2019 @ 9:34PM
Source : Dow Jones News

Soybeans Rally After Chinese Officials Confirm Deal On Track

By Kirk Maltais

 

--Soybeans for January delivery rose 0.7% to $8.84 1/4 a bushel on the Chicago Board of Trade on Thursday, as Chinese officials confirmed that negotiations for a partial trade deal with the U.S. are continuing.

--Corn for March delivery edged 0.5% lower to $3.76 3/4 a bushel.

--Wheat for March delivery fell 0.7% to $5.23 3/4 a bushel.

 

HIGHLIGHTS

 

Deal Not Dead: The trade negotiating teams on both sides have maintained close communication, China's Commerce Ministry said, though it didn't provide details on progress. That, plus the USDA's confirmation of 245,000 metric tons of soybeans being sold to unknown destinations--usually China--supported soybean futures. Traders will also monitor soybean sales to see if China is still a buyer, Karl Setzer of AgriVisor said.

Wheat Might Be: Net export sales of wheat through Nov. 28 fell below the low end of analysts' targets, totaling just 228,100 metric tons. This is down 45% from the prior four-week average and suggests wheat exports might not meet USDA projections.

 

INSIGHT

 

Corn Disappoints: Grains traders had hoped corn exports would be high enough to justify USDA demand forecasts set earlier this year, but last week's net shipments totaled 546,100 metric tons. As a result, corn exports are still 13% behind the pace needed to reach the USDA's target of 1.85 million bushels of demand for the 2019/20 season.

Meat on the Menu: Food prices have surged to their highest level in more than two years, the UN's Food and Agriculture Organization said, as the disease afflicting China's pig herd drove up meat and fish imports. Overall food prices are up 2.7% in November from October and were 9.5% higher than a year earlier. For U.S. farmers, who often farm and raise livestock in tandem, food prices trending higher may help their bottom lines, although they will need to access major markets like China to take advantage of these prices.

 

AHEAD

 

--The Bureau of Labor Statistics will release its monthly update to unemployment figures at 8:30 a.m. ET Friday.

--The CFTC will release its weekly commitment of traders data at 3:30 p.m. ET Friday.

--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.

 

--Joe Wallace contributed to this article.

Write to Kirk Maltais at kirk.maltais@wsj.com

(END) Dow Jones Newswires

December 05, 2019 16:19 ET (21:19 GMT)

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


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