GRAIN HIGHLIGHTS : Top Stories of the Day
Corn, Soybean Futures Consolidate After Report
Corn and soybean futures rebounded on Friday as traders absorbed a government report projecting larger-than-expected harvests.
Traders were content to consolidate the current prices, analysts said, after futures had fallen sharply in the wake of the U.S. Department of Agriculture's Thursday report. Some analysts said they expected futures to remain tethered to current price levels for the foreseeable future.
Food Industry Outlook 'Better Than We Feared' Says JPMorgan -- Market Talk
16:06 ET - Food industry analysts at JPMorgan met with executives from Kellogg, General Mills, Conagra, Mondelez and other companies this week, and said that "overall, the general tone from companies was better than we feared." Most went out of their way to play down the idea that grocers have become significantly more contentious or difficult to deal with, said the analysts. Conagra said it is "ridiculous" how far sentiment has shifted away from food producers, and Mondelez said the death of food has been "grossly exaggerated," the analysts said. "We got a distinct sense that sales trends are improving right now, in part because of successful innovation, in part because of comparisons [to weak results a year ago], and in part because of better economic conditions," they added. (firstname.lastname@example.org)
Farm Tractor Sales Surge in October -- Market Talk
15:35 ET - Retail sales of farm tractors and harvesting combines in the US and Canada were surprisingly strong on October. Sales of high-horsepower, two-wheel-drive tractors rose 38% from last October, says the Association of Equipment Manufacturers. US sales alone increased 43%. Sales of four-wheel-drive tractors were up 15%. Combine sales increased by 47%. October's sales report is "somewhat surprising," says JPMorgan, given that the market conditions for "US row-crop farmers remain broadly negative and 2018 looks set up to be another challenging year." Farm equipment makers Deere, CNH Industrial and AGCO all trading higher. (email@example.com; @bob_tita)
STORIES OF INTEREST:
Brazil Soybean Planting Progresses Past Halfway Point -- Market Talk
13:33 ET - Brazilian soybean farmers had completed 57% of their planting for the 2017-2018 growing season as of Thursday, according to agricultural consultancy AgRural. The five-year average for the date is 56%, and last year on the same date 63% was finished. Planting in the center-west region, Brazil's most important soybean-growing area, advanced rapidly, though irregular rain in October has hurt plant development in some areas, AgRural says. Warmer, drier weather in southern states should help the development of plants in that region, according to the consultancy. Brazil's crop agency has forecast a soybean crop of 106.4 to 108.6 million metric tons of soybeans in the 2017-2018 season, less than last year's record harvest of 114.1 million tons. AgRural forecasts a 2017-2018 crop of 110.2 million tons. (firstname.lastname@example.org)
Africa Wheat Imports Up as Consumption Soars -- Market Talk
0711 GMT - Wheat imports into Africa are soaring, driven by exploding populations, rapid urbanization and changing tastes. The USDA says shipments to sub-Saharan Africa have jumped nearly 50% this decade, with consumption growing in markets like Nigeria and Ethiopia as rising incomes allow consumers to switch to wheat from local staples. But rising imports also point to yet-another discomforting trend for impoverished economies grappling with widening trade deficits. Ethiopia, Africa's No.2 wheat grower, last year stirred global markets with a record 1-million-ton wheat tender after a poor harvest. The region's warm climate is not conducive for wheat growing in most countries. (nicholas.Bariyo@wsj.com; @Nicholasbariyo)
Tunisian Grain Body Buys Durum, Milling Wheat, and Barley in Tender
LONDON--The Tunisian state grain agency bought 100,000 metric tons of durum wheat, 100,000 tons of milling wheat, and 75,000 tons of barley as part of a tender, European traders said Friday.
Algerian Grain Body Buys Wheat, Barley in Tenders
LONDON--The Algerian state grain agency, OAIC, bought at least 210,000 metric tons of milling wheat on Friday as part of a tender that closed on Thursday, according to traders.
Livestock Futures Strained by Supply Outlook
Livestock futures ended the week sharply lower as traders reacted to softening cash markets.
Prices for physical cattle and hogs have been steady to lower this week. With supplies for both forecast to grow next year, analysts expect further pressure on cash prices ahead.