TOP STORIES:
Wheat Slides Amid Election Jitters
Wheat for December delivery fell 0.7% to $6.15 3/4 a bushel, on the Chicago Board of Trade Tuesday, dropping for a second straight day as grains traders were cautious in trading ahead of next week's U.S. general election.
Soybeans for January delivery fell 0.6% to $10.76 1/2 a bushel.
Corn for December delivery fell 0.4% to $4.16 a bushel.
STORIES OF INTEREST:
Some Grain Traders Opt For Caution -- Market Talk
13:34 ET - Grain futures are lower as some traders take a cautious approach on commodities ahead of next weeks' presidential election. "There is an 'air' of correction in the marketplace," says AgResource. "The risk vs. reward amid improving South American, US and Black Sea weather forecasts is not there with a major US election in a week." (kirk.maltais@wsj.com; @kirkmaltais)
Ethanol Figures Expected to Drop Further -- Market Talk
12:10 ET - US ethanol production and inventories are expected to drop again this week, says Terry Reilly of Futures International, which forecasts ethanol production to fall 6,000 barrels per day to 907,000 barrels per day, which would be the lowest they've been since mid-September. Meanwhile, the firm forecasts ethanol inventories to fall by anywhere from 100,000 barrels to 300,000 barrels--which could potentially put ethanol inventories at their lowest levels since December 2016. An inventory drop combined with higher production would be a hopeful sign for grains traders looking to see US ethanol domestic demand rebound. Corn futures trading on the CBOT are down 0.2% Tuesday. (kirk.maltais@wsj.com; @kirkmaltais)
Corn And Soybean Harvests Nearing Finish Line -- Market Talk
09:23 ET - The US harvest for corn and soybeans is solidly ahead of the usual 5-year pace, the USDA said in its crop progress report released yesterday--pegging the corn harvest at 72% finished and soybean harvest at 83% done. "These are both at levels where trade will quickly put the year to rest and focus instead on what will be done with the new inventory," says Karl Setzer of AgriVisor. Corn futures on the CBOT traded up 0.3% overnight, while soybeans fell 0.1%. Wheat, meanwhile, is up 0.5% as the report showed a big drop-off in winter wheat crop quality from last year, with only 41% of the crop in good or excellent condition, versus 56% at this time last year. (kirk.maltais@wsj.com; @kirkmaltais)
THE MARKETS:
Hog Futures Inch Lower as Herd Expected to Shrink -- Market Talk
15:11 ET - Lean hog futures trading on the CME finished down 0.2% at 67.65 cents per pound, amid speculation that US hog herds may contract in 2021. "Months of disappointing returns will drive a modest contraction in the herd in 2021," says Christine McCracken, a senior analyst with Rabobank. Longer term, the rebound of China's hog herd from devastation due to African swine fever is expected to eventually lessen the export market potential for US pork. "Although the reestablishment of China's breeding herd and production assets is a multi-year process, it is now apparent that China is confident in its ability to manage additional virus events," says McCracken. Live cattle futures, meanwhile, closed trading up 0.6% to $1.0405 per pound Tuesday. (kirk.maltais@wsj.com; @kirkmaltais)
(END) Dow Jones Newswires
10-27-20 1734ET
