GRAIN HIGHLIGHTS : Top Stories of the Day
Grain, Soybean Futures Recover from USDA Surprise
Grain and soybean futures were mixed on Wednesday, recovering from losses following unexpectedly large U.S. harvest estimates earlier this week.
Crop prices had been under pressure on Tuesday after the U.S. Department of Agriculture forecast a U.S. corn yield this year of 169.9 bushels per acre and along with 49.9 bushel for soybeans, setting farmers up for a bumper harvest. Those were higher than its previous estimates, surprising analysts who expected the agency to reduce its figures.
STORIES OF INTEREST:
U.S. Soybean Crush Likely Fell in August, Analysts Say
Analysts expect a trade group to report a slowdown in U.S. soybean crushing in August from a month earlier.
The average estimate for soybean processing in August as reported by the National Oilseed Processors Association is 136 million bushels, according to a survey by The Wall Street Journal, down from 144.7 million bushels in July but above 131.8 million a year earlier. Estimates range from 133.1 million bushels to 138.7 million bushels.
Grain, Soybean Futures Climb After USDA Shock -- Market Talk
10:31 ET - Grain and soybean futures continue to recover from larger-than-expected harvest estimates from the USDA. Market participants are debating the consequences of the higher corn and soybean yield forecasts. Some analysts say the agency could adjust its estimates lower in its next October report, while others suggest it is unlikely to reverse course. "Bottom line, the crops are currently getting bigger, not smaller," says Karl Setzer of MaxYield Cooperative. "Even if this does not pressure the market, it will likely prevent a rally from taking place." CBOT most-active December corn futures rise 1.3% to $3.56 a bushel, while November soybeans rise 0.8% to $9.58. December wheat contracts climb 1.6% to $4.49 1/4. ([email protected]; @b_parkyn)
Cattle Futures Rise to Multiweek High on Steady Cash Trade
Cattle futures rose to a four-week high, changing course as cash-market prices steadied.
Meatpackers paid $104.75 per 100 pounds live for one lot of cattle at Wednesday's morning online Fed Cattle Exchange auction. Only 128 cattle out of over 1,000 listed sold as feedlots held out for higher prices.
That was following up from trade at $104 a pound live and $165 dressed a day earlier in Iowa and Minnesota, according to the U.S. Department of Agriculture.