China Uncertainty Drags Grain Futures Down
By Kirk Maltais
-- Soybean contracts for January delivery dropped 0.4% to $9.09 1/2 a bushel at the Chicago Board of Trade Thursday.
-- March corn contracts also fell 0.4% to $3.82 3/4 a bushel.
-- Wheat contracts for March delivery fell 0.5% to $5.15 1/2 a bushel.
Huawei CFO Arrest Muddles U.S.-China Truce: Grain futures across the board traded lower throughout the day, with the arrest of Huawei CFO Meng Wanzhou casting further doubt that China will follow through with the trade truce promised in the wake of the G-20 summit. "(The arrest) has really muddied the water," said Don Roose of U.S. Commodities.
U.S. Wheat Shut Out of Egyptian Tender: Egypt's state grain buyer the General Authority for Supply Commodities said that it bought 350,000 metric tons of Russian and Ukrainian wheat, with U.S. producers not offering any quotes despite being included in the buyer's last two tenders after being shut out for the past year.
U.S. Sellers Utilize Restraints Despite Chinese Uncertainty: Multiple market participants say that current grain futures are risk-off investments, but the selling seen on the market today has been restrained, indicating continued patience for concrete details about the U.S.-China trade truce from the corn and wheat markets, according to Arlan Sudelman with INTL FCStone.
Chinese State Firms Rumored to Be Planning Soybean Purchase: Interested Chinese parties are said to be looking into making a sizable purchase of soybeans out of the U.S. Pacific Northwest. According to Commerzbank Commodity Research, citing a Chinese intelligence firm, large state-owned companies may be ordered to make purchases in the near future.
-- USDA releases weekly export sales data on Friday, delayed because of the national day of mourning for President George H.W. Bush on Wednesday.
-- USDA releases weekly export inspection data on Monday.
-- David Hodari contributed to this article.
Write to Kirk Maltais at firstname.lastname@example.org