TOP STORIES:
Wheat Higher as Market Mulls Weather Patterns
Wheat for September delivery rose 1.3% to $6.63 3/4 a bushel on the Chicago Board of Trade Wednesday, with weather systems delivering rainfall to the U.S. Midwest, but missing wheat-growing areas. Corn for July delivery rose 0.7% to $6.64 1/4 a bushel. Soybeans for November delivery fell 0.2% to $13.00 1/4 a bushel.
While areas of the Midwest are receiving rain to support nascent crops, U.S. wheat appears to be getting the least rain, which had traders adding a weather premium to prices Wednesday.
"The weather is a tale of two cities, the east is wet, but the Northern Plains continue to be dry," said Charlie Sernatinger of ED&F Man Capital.
In the latest crop progress report, the USDA said spring wheat quality was only 27% good or excellent, well below last year's 75%.
Grain Traders See Bounce Back From Low Export Sales -- Market Talk
1301 ET - The low export sales of US grains reported last week are not expected to extend into this week, according to grain traders surveyed by WSJ. The widest range of possibilities is in US soybean exports, with traders forecasting sales to range anywhere from none to 1.05M metric tons for the week ended June 17. By comparison, soybean sales totaled only 71,800 tons in last week's report. Corn may also see a boost, with estimates going as high as 900,000 tons--well up from a total of 294,100 tons last week. (kirk.maltais@wsj.com; @kirkmaltais)
Supreme Court Strikes Down Union Organizers' Access Right to California Farms
WASHINGTON -- The Supreme Court struck down union organizers' right to visit farmworkers on agricultural fields, ruling Wednesday that a 1975 California regulation providing such access violated growers' private property rights.
The decision, by a 6-3 vote along the court's conservative-liberal divide, erases a major victory that Cesar Chavez's farmworker movement achieved in the 1970s, when they argued the nature of agricultural labor made it too difficult to reach workers outside the fields.
STORIES OF INTEREST:
Jump in Planted Acreage May Be Overstated -- Market Talk
0930 ET - Many grain traders are forecasting that the USDA's June 30 planted acreage report will show a large jump in planted acreage versus the agency's original outlook of 91.1 million acres of corn and 87.6 million acres of soybeans -- with one agency forecasting a growth of as much as 7 million acres between the two crops. However, given the supportive weather seen in this planting season, such a growth is unlikely, says Scott Irwin of the University of Illinois. According to Irwin, good weather would have made it more likely for farmers to get the majority of their planting done early -- and the USDA has probably already accounted for it. Irwin forecasts planted acres will grow a more modest 1.5 million to 2 million acres between corn and soybeans. (kirk.maltais@wsj.com, @kirkmaltais)
THE MARKETS:
Lean Hogs Sink Amid Dropping Cutout Prices -- Market Talk
1511 ET - Lower prices for pork products is applying pressure to hog futures , with the most-active contract finishing trading down 2.8% to $1.00725 per pound. The drop in futures comes as pork cutout prices continue to sink, with prices for loin, butt, and belly all down mid-day today. This comes after the big drops in cutout prices across the board reported by the USDA at the end of the day yesterday. Meanwhile, live cattle futures closed down 0.2% to $1.22875 per pound. (kirk.maltais@wsj.com; @kirkmaltais)
(END) Dow Jones Newswires
06-23-21 1707ET
