Soybeans Rally After Chinese Officials Confirm Deal On Track
December 05 2019 - 4:34PM
Dow Jones News
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)
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