TOP STORIES:
Soybeans Rise as Dry Weather Weakens Crops
Soybeans for November delivery rose 0.90% to $9.50 and 1/2 a bushel on the Chicago Board of Trade on Friday as dry weather forecasts increase the odds of lower crop conditions.
StoneX's Arlan Suderman says there's no evidence that ending stocks will be low enough to support prices. Soybeans look stronger than corn and wheat, mainly because "fundamentals are stronger, " Suderman says. "Traders see a great chance of [weaker] crops and Chinese buying," for the beans, he says.
Agricultural Markets Mixed As Exports Provide Relief -- Market Talk
09:42 ET - Grains open mixed after Thursday's rally, as traders digest weather forecasts and exports keep relieving downward price pressures. The USDA says sales of 324,032 metric tons of corn have been reported to unknown destinations. AgResource says USDA's Monday report on crop conditions is expected to show further deterioration. That would support prices, particularly for soybeans, but stock projections remain high for all grains. "Trying to decide when the CBOT has digested how small-is-small in US soybeans determines when a CBOT top is set," AgResource says. (paulo.trevisani@wsj.com; @ptrevisani)
STORIES OF INTEREST:
Corn Reverses Loses, But Futures Remain Mixed -- Market Talk
14:54 ET - Grain markets move little as traders wait for crop conditions data next week expected to reveal further deterioration. Weather is the main driver of crop yields, with dry conditions this month trimming expectations. "This week's extreme heat really pushed crop maturity to the detriment of yield," AgResource says. News of fresh corn exports to unknown destinations offer an extra boost for the grain. Similar crop expectations also hit major wheat producing countries. (paulo.trevisani@wsj.com; @ptrevisani)
Oil Ends With 4th Straight Weekly Increase -- Market Talk
14:45 ET - US benchmark oil prices end the session a tiny 0.2% lower, but notch a 1.5% weekly increase to $42.97 a barrel that marks a fourth straight weekly rise. WTI registered most of the week's gains early on as the looming threat of Hurricane Laura forced offshore oil producers to cut production, and led many coastal refineries to also shut. "From here, the [crude-oil] complex appears poised for some price consolidation until the next major storm begins to head toward the Gulf of Mexico," say analysts at Ritterbusch & Associates. "With an unusually active hurricane season appearing to lie ahead, much seesaw price activity will likely be forthcoming." (dan.molinski@wsj.com)
THE MARKETS:
Hogs, Cattle Fall On Fears Supply Will Outstrip Demand -- Market Talk
15:23 ET - Livestock futures fall amid fears of oversupply, even as slaughtering gathers speed. Lean hogs fall 3.7% to 53.65c a pound, and live cattle loses 1.2% to $1.049 a pound. Traders fear lower demand for meat following Labor Day won't match robust supply, mainly for hogs, as US production of pork has increased substantially over the past few years. Doubts also remain about domestic demand, John Nalivka from Sterling Marketing says. Sales lost to dine-in restaurants have been offset by fast-food and home cooking, plus exports. "But we still need all [those] components," he says. (paulo.trevisani@wsj.com; @ptrevisani)
