TOP STORIES:

 

Grain and Bean Futures Decline

U.S. grain and soybean futures all declined Monday, with some upbeat export data failing to stem selling pressure after investors trimmed short positions last week.

The benchmark wheat contract shed more than 1% and soybeans fell 0.9%, with March corn futures closing down 0.6%. Weather-related concerns that buoyed markets for part of last week--ranging from dryness in Argentina and the Great Plains to excessive rain in parts of Brazil--dissipated over the weekend. Snow in the U.S. alleviated some of the drought concerns affecting the wheat crop, while Argentina was due for more rain as planting neared completion.

 

U.S. Farmers Are Producing Too Much Food. Here's Why They Can't Stop

Farmers are producing too much wheat and corn, dragging down economic growth and pushing some farmers out of business.

Farming has unique challenges. Start-up and expansion costs are large, investments take years to mature and the nation's vast network of farmers is too disjointed to cooperate on production cuts. This can result in an economic enigma: rising output amid falling prices.

 

STORIES OF INTEREST:

 

Bayer Makes New Concessions for EU Regulators' Approval of Monsanto Deal -- Update

Bayer AG (BAYN.XE) said Monday that it has made further concessions to European regulators as part of its $63.5 billion bid to acquire Monsanto Co (MON).

The German pharma company said it submitted "very significant" remedies to the European Commission and that it is confident the offered concessions fully address the regulator's concerns.

 

Sugar Prices Fall on Oversupply Worries -- Market Talk

1023 ET - Sugar prices are down, with supply concerns continuing to weigh on the market. Sugar for March delivery is down 0.5% at 13.56 cents a pound. Prices have traded roughly sideways the last few weeks after falling for much of January. Despite forecasts for lower production in Brazil and globally in the 2018-19 growing season, analysts expect the market to remain well supplied moving forward. Lower energy prices and a stronger dollar are also weighing. The declines come after CFTC data Friday showed speculative investors increased bearish positions. JPMorgan Chase analysts say clients are still constructive on sugar given after declines in recent months have made the commodity relatively cheap. ING analysts says industry experts at the ongoing Dubai Sugar Conference expect a supply surplus to continue. (amrith.ramkumar@wsj.com; @AmrithRamkumar)

 

THE MARKETS:

 

Hog Futures Jump on Winter Blast; Cattle Declines

CHICAGO--Lean hog futures climbed to their highest level since mid-August as a snowstorm pummeled the biggest pork-producing state in the U.S., potentially constraining hog supplies. Cattle contracts fell.

February-dated hog contracts, set to expire in two weeks, settled 0.9% higher at 75.87 cents a pound at the Chicago Mercantile Exchange. It was the fourth consecutive gain for the contract, which is up 4.6% since the beginning of the month.

 

(END) Dow Jones Newswires

February 05, 2018 17:57 ET (22:57 GMT)

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