GRAIN HIGHLIGHTS: Top Stories of the Day

05/17/19 05:23 PM EDT

TOP STORIES:

 

Corn Futures Prices Rise on Midwest Planting Delay Due to Rainy Weather

Corn contracts for July delivery rose 1.1% at $3.83 1/4 a bushel on the Chicago Board of Trade on Friday, as traders continue to expect a large delay in corn planting with rainy weather likely over the weekend. Wheat contracts for July delivery fell 0.4% at $4.65 a bushel. Soybean contracts for July delivery fell 2.1% at $8.21 3/4 a bushel.

 

Corn Run-Up: Corn futures continue to rise for a fifth day Friday. Since the open of trading Monday, July corn futures have risen over 9%, off of indications that planting of corn in the Midwest would continue to be significantly delayed until the weather dries up for an extended period of time. AgResource projects that corn plantings may total 48-52% next Monday, which is far from the seasonal average of 90%.

 

Deere Says Trouble on the Farm Will Drag on Profits, Sales

Deere & Co. lowered its profit and sales forecasts to reflect slackening demand for its tractors and planters as trade disputes and bad weather weigh on the incomes of U.S. farmers.

Farmers who buy Deere machinery are being hurt by lower overseas purchases of U.S. corn, soybeans and other crops as a result of tariffs on farm commodities, exacerbating a multiyear price slump after years of bumper harvests.

 

STORIES OF INTEREST:

 

U.S. Farmers, Wanting a Trade Deal, Brace for Aid Package They Fear Will Fall Short

Stalled trade talks between Beijing and Washington are exacerbating a slump in the U.S. Farm Belt, and many farmers don't believe an aid package being assembled by the Trump administration will be enough to compensate for the economic damage.

Agriculture has been among the U.S. economic sectors hit hardest by the yearlong trade conflict with China. Now that a deal has slipped from the grasp of negotiators, farmers are facing the likelihood that the deepest downturn in the agricultural economy since the 1980s could be prolonged.

 

Soybeans Depressed as Funds Stay Short -- Market Talk

12:34 ET - Soybeans futures on the CBOT are trading down 1.6% so far, as managed money funds are believed to be maintaining a short position on beans despite concerns that wet weather in the Midwest will continue to delay planting of 2019/20 crops by farmers. According to Doug Bergman of RCM Alternatives, the failure of the July contract to leapfrog a perceived resistance level at $8.44 per bushel has convinced the funds to remain bearish. "Bean stocks are bearish and the trade war is heating up again," Bergman says. "Look for beans to continue to be the weak leg." Meanwhile, corn futures are up 1.1% and wheat is up 0.3%. (kirk.maltais@wsj.com; @kirkmaltais)

 

THE MARKETS:

 

Livestock Finishes Higher in Big Day for Global Trade -- Market Talk

15:05 ET - Both June live cattle and lean hog contracts finish higher as the US made two big advancements in global trade today--one, to lift long-standing restrictions on exports of US beef to Japan, and two, President Trump confirms that an agreement had been made to remove metal tariffs on Canada and Mexico, easing a major stumbling block for USMCA passage. Both developments are expected to help boost the amount of US pork and beef exported for sale. News of the Japanese deal supported cattle futures, which closed up 0.7% at $1.11275 per pound. Meanwhile, the late-day news about the metal tariffs, which would potentially bolster USMCA prospects, were only able to nudge hog futures into the black, with the contract finishing up 0.2% at 92.375 cents per pound. (kirk.maltais@wsj.com, @kirkmaltais)

 

(END) Dow Jones Newswires

May 17, 2019 17:23 ET (21:23 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.