Grain Futures Rise on U.S.-China Trade Hopes
November 22 2019 - 5:10PM
Dow Jones News
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)
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