GRAIN HIGHLIGHTS: Top Stories of the Day

TOP STORIES:

Wheat Higher as Investors Chase Rally

Wheat for July delivery rose 2.4% to $7.44 1/2 a bushel, its highest close since February 2013 on the Chicago Board of Trade. Corn for July delivery rose 1.6% to $7.08 a bushel, its highest close since March 2013. Soybeans for July delivery rose 0.2% to $15.45 1/2 a bushel, its highest close since November 2012.

Grain futures across the board jumped again Wednesday. "While the market does have supportive news such as the ongoing crop stress in Brazil and the need for rationing, these are not new stories," said Karl Setzer of AgriVisor. "There [is] some thought rains will slow plantings in the U.S. next week, but not enough to drop progress behind average." Wheat futures gained the most, being less overbought than soybeans or corn.

Fresh Del Monte 1Q Profit Rises Despite Pandemic's Sales Hit

Fresh Del Monte Produce Inc. Wednesday posted lower sales in its first quarter due to the pandemic's effects on commercial customers, but profit rose amid lower costs.

The Coral Gables, Fla.-based fruit and vegetable company logged earnings of 90 cents a share, compared with 27 cents a share in last year's first quarter. Net income attributable to the company was $42.7 million, up from $13 million in the prior-year period.

Corteva Profits Jump, But Shares Slump -- Market Talk

1044 ET - Corteva's 1Q profits topped analysts' expectations and the agriculture company lifted its 2021 sales outlook, but shares are down 6% in midmorning trade. The former DowDuPont seed-and-pesticide unit earlier this year projected a big profit increase versus 2020, and since then named new directors backed by activist investor Starboard Value, as well as a new CFO. BMO Capital Markets analysts say that more than doubled quarterly net income and restated profit outlook for the year may not have been enough for investors who were expecting a rosier outlook as agricultural markets continue to rise. (jacob.bunge@wsj.com; @jacobbunge)

STORIES OF INTEREST:

Grain Export Sales Expected to Keep Steady -- Market Talk

12:45 ET - Export sales of US grains are expected to stay relatively steady in this week's report, according to traders surveyed by WSJ. They forecast a wide range for all grains, with last week's totals falling within these ranges. However, traders are also forecasting the possibility for soybean and soy product exports to drop significantly from the previous week's report--with soybean exports seen as potentially being as low as 100,000 metric tons, well down from 731,500 tons reported last week. (kirk.maltais@wsj.com; @kirkmaltais)

China Cancels US Corn Purchase -- Market Talk

09:40 ET - The USDA confirmed this morning that China has canceled purchasing of 140,000 metric tons of US corn, which was previously confirmed for delivery in the 2020/21 marketing year. The canceled buy comes as corn futures continue to climb, with the most-active CBOT contract up over $7 per bushel this morning, the highest they've traded at since 2013. Meanwhile, the USDA confirmed that 184,100 tons of corn have been sold to Mexico for the 2021/22 marketing year, while another 147,320 tons have been confirmed for sale to unknown destinations -- 45,720 tons in 2020/21 and another 101,600 tons in 2021/22. (kirk.maltais@wsj.com; @kirkmaltais)

U.S. Ethanol Stocks Turn Higher After 10-Week Drop

After falling for 10 consecutive weeks, U.S. ethanol inventories have grown this week, according to data from the U.S. Energy Information Administration.

In the EIA's latest report released this morning, ethanol inventories rose approximately 700,000 barrels to 20.4 million barrels for the week ending April 30, up from 19.7 million barrels last week. It is the first time since early February that stocks have risen.

THE MARKETS:

Hogs Finish Higher on Cutout Strength -- Market Talk

1527 ET - After starting trading lower, hog futures reversed course to finish higher -- with the most-active contract closing 0.7% higher at $1.1475 per pound. That makes it the second day that hog futures have closed higher than cattle, an unusual occurrence. The turnaround in hog futures comes as pork cutouts rise, with the USDA reporting higher prices midday. Carcass cutouts were up $3.11 per hundredwight midday, while other cutouts including ribs, butt, and bellies rose. Meanwhile, live cattle futures closed trading up 1.3% to $1.147 per pound. (kirk.maltais@wsj.com; @kirkmaltais)


  (END) Dow Jones Newswires
  05-05-21 1729ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.