Wheat Supported by U.S.-China Trade Reports
December 12 2019 - 4:25PM
Dow Jones News
By Kirk Maltais
--Wheat for March delivery rose 2.1% to $5.30 1/4 a bushel on
the Chicago Board of Trade on Thursday, on reports that the U.S.
and China are close reaching a trade deal.
--Corn for March delivery rose 1.8% to $3.77 3/4 a bushel.
--Soybeans for January delivery rose 0.5% to $8.98 1/4 a
bushel.
HIGHLIGHTS
Opportunity Knocks: Wheat futures reversed early losses after
President Trump tweeted that a trade deal with China was imminent.
"Wheat took off during the day session, pushed by multiple news
stories of a trade deal supposedly right around the corner with
China," said Charlie Sernatinger of ED&F Man Capital.
Back in Demand: Thursday's export sales report that showed corn
exports at nearly 900,000 metric tons - as well as a new purchase
by Mexico for 1.5 million tons of corn Thursday - sparked hope that
foreign buyers are renewing purchases of U.S. corn, which was
reflected in Thursday's price movement. This helped ease trader
concerns about a lack of corn demand.
INSIGHT
After the Bell: Big swings in grains futures could come Friday
if a Phase One trade deal is confirmed by both the White House and
Chinese government officials. Soon after grains futures on the CBOT
closed trading, reports surfaced claiming that the U.S. and Chinese
delegations had reached a deal in principle on a partial deal.
Traders are gun-shy to act on any trade deal news without
supporting details of the deal.
On Your Own: Farmers shouldn't count on another round of
trade-related payments from the USDA next year, said USDA Secretary
Sonny Perdue during a conference Thursday. Perdue urged farmers to
plant whatever they normally would to maximize profits, and warned
farmers against feeling entitled to another multi-billion dollar
rescue package from the government. "If markets move and we get
back to trade, I'd be hopeful we don't need a third [trade payment
program]," he told reporters at the conference, which was held in
Omaha.
AHEAD:
-The CFTC will release its weekly commitment of traders data at
3:30 p.m. ET on Friday.
-The USDA releases its weekly grain export inspections data at
11 a.m. ET Monday.
-The National Oilseed Processors Association (NOPA) will release
its crush statistics at noon ET Monday.
Jacob Bunge contributed to this article.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
December 12, 2019 16:10 ET (21:10 GMT)
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