TOP STORIES:
Soybeans Fall as Traders Reap Profits
Soybeans for March delivery fell 1% to $14.16 3/4 a bushel on the Chicago Board of Trade Friday, with traders taking the opportunity to sell futures for profit as crushing margins in China tighten.
After a week where both corn and soybeans saw big rises following the release of the USDA's WASDE report on Tuesday, grains traders and farmers sold off some of their positions Friday. In addition to profit-taking, signals globally contributed to negative momentum.
USDA Flash Sales Pick Up Amid Talks of Demand Rationing -- Market Talk
12:06 ET - The USDA more new flash sales of US grain exports this morning, which is suggesting to some traders that buyers want to lock in soybean exports before prices run up further. Some 318,000 metric tons of soybeans were sold to unknown destinations for delivery in the 2021/22 marketing year, the USDA says. "New-crop 2021 soybean sales have been picking up lately, suggesting to some that buyers are worried about potential tightness into the next marketing year that could keep prices high into next year," says Arlan Suderman of StoneX. Today's announcement makes it 1.1 million tons of soybean exports sold via flash sales in the past week, after a lull in sales in previous weeks. (kirk.maltais@wsj.com; @kirkmaltais)
STORIES OF INTEREST:
Wheat Futures Higher as Russia Strengthens Export Duties -- Market Talk
09:31 ET - Wheat futures on the CBOT are higher pre-market, up 1.5% Friday. The rise is being attributed to higher Russian wheat export duties being confirmed today -- with Russia announcing that it will place a EUR50 per metric ton ($61 per ton) duty on its wheat exports beginning March 1st continuing into June 30th. "The aggressive wheat duty is a de facto Russian wheat export ban," says AgResource. "Other primary exporters including the US will fill world demand." (kirk.maltais@wsj.com; @kirkmaltais)
Conagra Stock Is Slumping, but Chairman Richard Lenny Scooped Up Shares -- Barrons.com
Packaged-foods giant Conagra Brands has seen its shares slumping in January, and non-executive Chairman Richard Lenny bought the stock.
Conagra (ticker: CAG), owner of iconic brands including Peter Pan, Duncan Hines, and Orville Redenbacher's, reported a strong second quarter in early January. But analysts worried the company wasn't spending enough on advertising and promotion to retain new, younger consumers who have bought Conagra products during the pandemic. Conagra stock sank in the wake of the report, and has now lost 6% in the first two weeks of 2021. The drop wipes out a 5.9% rise in 2020.
THE MARKETS:
Hog Futures Ride Cutout Momentum -- Market Talk
15:14 EYT - Hog futures on the CME closed higher today making up for some ground shed this week, with the most-active contract closing up 2.5% to 67.925 cents per pound Friday. The movement of hog futures seemed to follow pork cutout prices up today, with pork cutouts overall rising today. Ham and butt prices in particular rose - adding $7.62 per hundredweight and $7.79 per cwt, respectively. Meanwhile, live cattle futures closed up 0.8% to $1.182 per pound. (kirk.maltais@wsj.com; @kirkmaltais)
(END) Dow Jones Newswires
01-15-21 1715ET
