TOP STORIES:


 
Corn Futures Rise on Speculation Supply Could Tighten 

Corn for December delivery rose 1.2% to $4.13 3/4 a bushel on the Chicago Board of Trade on Wednesday, its highest close since July 2019 amid speculation that U.S. corn yields could be lower than previously forecast as the harvest nears completion. Soybeans for November delivery rose 0.8% to $10.72 a bushel. Wheat for December delivery fell 0.4% to $6.29 3/4 a bushel. Corn traders bet that next month's WASDE report could show falling yields. "Hearing of some lower test weights than expected across the U.S., which may have an impact on national yields," Marex Spectron said. In October's WASDE, the USDA reduced its outlook for the corn yield this year by just 0.1 bushel per acre to 178.4 bushels an acre. "The market was surprised by the USDA action of not bringing down yields in the October WASDE, and some areas may not be quite as good as first thought," Marex Spectron said.


 
Pandemic-Era Shoppers Splurge on Vitamins, Boosting Nestle; Sales -- Update 

Nestle SA said the pandemic has increased consumers' health consciousness, boosting its small but fast-growing health-sciences unit and contributing to better-than-expected overall sales at the world's largest packaged-food maker. The owner of Nescafe coffee, DiGiorno frozen pizza and Purina pet food has previously benefited from a pandemic-era shift by consumers to comfort food -- particularly big, trusted brands -- as they stocked up and stayed home during lockdowns. Net sales fell 9.4%, to 61.91 billion Swiss francs, equivalent to $68.24 billion, dragged down by currency changes and divestitures. CEO Mark Schneider has sold a string of assets, including Nestle's skin-health arm and U.S. ice-cream business, as he pivots toward categories he sees as higher growth.


 
Albertsons: Shopping Won't Go Back to Normal for Year or More -- Market Talk 

13:39 ET - It will take at least another year or more until the shopping atmosphere returns to pre-Covid ways, Vivek Sankaran, CEO of Albertsons, says at a virtual event hosted by the National Retail Federation. Consumers want to come in and finish their trips and remain cautious about safety, he says, adding they continue to cook more at home and try different product categories such as baking. (jaewon.kang@wsj.com; @_jaewonkang)

STORIES OF INTEREST:


 
Ethanol Slump Seen as Sign of Resurgent Coronavirus Restrictions -- Market Talk 

1352 ET - Data released by the EIA Wednesday showed that both US ethanol production and ethanol inventories are down from the previous week -- which is being seen by some grains traders as a possible sign of states amping up their restrictions to limit a resurgent spread of coronavirus during this year's flu season. "President Trump promised that there would not be another national shutdown, but some high-driving states are threatening localized shutdowns that risk seeing lower ethanol demand at least partially offset the strong export demand that we are seeing this year," says Arlan Suderman of StoneX. Corn futures on the CBOT are up 1.4% currently. (kirk.maltais@wsj.com; @kirkmaltais)

THE MARKETS:


 
Livestock Futures Close Lower -- Market Talk 

15:39 ET - Livestock futures trading on the CME closed lower Wednesday, with lean hogs turning down after starting higher today -- finishing off 0.1% at 69.2 cents per pound. Meanwhile, live cattle futures closed trading Wednesday down 0.8% at $1.04575 per pound. For cattle futures, today's decline makes it 7.5% that the most-active contract has shed in the past two weeks. Tomorrow's cold storage report from the USDA may provide a spark for livestock futures. (kirk.maltais@wsj.com; @kirkmaltais)

(END) Dow Jones Newswires

10-21-20 1802ET