TOP STORIES:
Soybean Futures Rise as WASDE Confirms Tight Supply
Soybeans for July delivery rose 1.8% to $16.47 1/2 a bushel on the Chicago Board of Trade on Wednesday, the highest settlement since September 2012 as the USDA's monthly report confirmed growing demand for soyoil and other products. Corn for July delivery fell 1% to $7.14 3/4 a bushel. Wheat for July delivery fell 1.6% to $7.29 3/4 a bushel.
In its WASDE report Wednesday, the USDA projected strong growth in the amount of U.S. soyoil that will be consumed by the biofuels industry this year. About 12 billion pounds of soyoil are projected to be used by biofuel makers in 2021/22, well up from 9.5 billion pounds in 2020/21. U.S. production is also expected to rise, but only by 430 million pounds.
U.S. Ethanol Production Jumps, Stockpiles Sink
U.S. ethanol production jumped this week and stockpiles sank, both moves exceeding analyst expectations this week.
U.S. production of ethanol grew to 979,000 barrels per day for the week ended May 7, the EIA said in its weekly report Wednesday. That is over the high end of the range projected by analysts surveyed by Dow Jones this week, who had forecast production to rise as high as 976,000 barrels per day.
STORIES OF INTEREST:
USDA Forecasts Higher Black Sea Corn Exports in 2021/22 -- Market Talk
12:39 ET - Exports of US corn in the next marketing year are expected to slide by 325M bushels, the USDA says in Wednesday's WASDE report. "Unfavorable production prospects are forecast to limit exports out of Argentina and Brazil during 2020/21, supporting U.S. exports during the first half of 2021/22," the agency says in the report. "However, a 335-million-bushel increase in the combined corn exports for Ukraine and Russia in 2021/22 is expected to increase competition for the United States, reducing the forecast U.S. share of global corn trade from a year ago." (kirk.maltais@wsj.com; @kirkmaltais)
Ben & Jerry's Weighs In On Corporate Activism -- Market Talk
15:47 ET - Ben & Jerry's Chief Executive Matthew McCarthy urges fellow corporate leaders to take a stand on sociopolitical issues but cautioned: "focus on your walk, not your talk." Speaking at WSJ's "Future of Everything Festival," McCarthy says hollow public statements can actually do more harm than good. "In this world of hyper transparency, what you do is what you are as an organization," McCarthy says, later adding: "It's OK to fall on your face. What's not OK is to sit on the sideline and do nothing--or worse, say something that suggests that you are in the game but you are not." (maria.armental@wsj.com; @mjarmental)
THE MARKETS:
Hog Futures Finish Higher After WASDE -- Market Talk
1529 ET - Lean hog futures trading on the CME closed up 0.8% to $1.12025 per pound. Higher prices were supported by the USDA's latest projections in its WASDE report released this afternoon -- in which the agency forecasts that US pork production is expected to fall this year due to an expectation of decreased carcass weights. Livestock demand on the export market is also expected to grow this year, the USDA says. "Beef, pork, and broiler exports are raised on recent trade data and expectations of stronger growth to a number of key markets," the USDA says. Meanwhile, live cattle futures closed trade down 0.1% to $1.1865 per pound. (kirk.maltais@wsj.com; @kirkmaltais)
(END) Dow Jones Newswires
05-12-21 1720ET
