GRAIN HIGHLIGHTS: Top Stories of the Day

TOP STORIES:

Wheat Falls After Egypt Cancels Tender

Wheat for July delivery fell 1.9% to $6.61 1/2 a bushel on the Chicago Board of Trade Tuesday after Egypt's grains buying authority canceled a previously announced tender. Soybeans for July delivery fell 0.4% to 14.65 3/4 a bushel. Corn for July delivery rose 1.2% to $6.67 1/2 a bushel.

USDA Announces Additional $2.6 Billion in Agricultural Aid

U.S. farmers impacted by the coronavirus pandemic will receive additional aids payments totaling at least $2.6 billion, the Department of Agriculture confirmed. In a notice issued Tuesday, the USDA said that it is allocating the funds to agricultural producers that may have been missed in previous aid, as well as continuing to help sectors that have been hurt most by the pandemic.

STORIES OF INTEREST:

Soybean Crush Rates Perk Up in May -- Market Talk

12:44 ET - Soybeans crushed in the US rose in May, according to data from the National Oilseed Processors Association. NOPA reports the soybean crush rate hit 163.5M bushels in May, up from 160.3M bushels in April. However, the rate is lower than forecast by analysts, Terry Reilly of Futures International says. "The lower than expected US May soybean crush and end of May soybean oil stocks is viewed supportive for soybean oil, in our opinion," Reilly says. Soyoil futures are trading 0.8% lower, which is pulling soybean futures down 0.5%. (kirk.maltais@wsj.com; @kirkmaltais)

Egypt Cancels Wheat Tender, Traders Say

Egypt's state grain buyer cancelled an international wheat tender on Tuesday without making any purchases, traders said. The General Authority for Supply Commodities launched the tender late Monday saying that it was seeking to buy an unspecified amount of wheat for shipment between Aug. 21-31.

Soyoil Futures Stage Turnaround -- Market Talk

0915 ET - Weakness in soyoil futures trading on the CBOT appears to have subsided, with market speculation that the Biden Administration may make new allowances to oil refiners to allow them to circumvent biofuel blending mandates drying up. "Some feel the biofuel relief talk is overdone with no update or confirmation of what will happen," says Terry Reilly of Futures International. "We think there will be some type of relief but not without some type of bipartisan deal with food producers." Soyoil futures recently pulled back from all-time highs of nearly 73 cents per pound due to the reports, but are up 1.4% to nearly 67 cents per pound in pre-market trading Tuesday. Performance of soyoil is a factor providing support to soybeans today, with soybeans up 0.4% pre-market. (kirk.maltais@wsj.com; @ kirkmaltais)

US Ethanol Production Expected to Keep Rising -- Market Talk

12:54 ET - Production of ethanol in the US is expected to stay on the rise this week, according to analysts surveyed by Dow Jones. If production rises to the high end of analyst expectations--to roughly 1.08M barrels a day--it'll be the highest US ethanol production has been since late February of last year, prior to the Covid-19 pandemic hitting the US. Meanwhile, inventories of ethanol are expected to rise to more than 20M barrels, according to analysts. Analysts surveyed expect stocks to rise to anywhere from 20.06M barrels to 20.56M barrels. If they rise to the high end of expectations, it'll be the highest stocks have been since early April. Corn futures fall 0.2%. (kirk.maltais@wsj.com; @ kirkmaltais)

THE MARKETS:

Livestock Futures Turn Higher to Close Day -- Market Talk

1710 ET - Livestock futures closed trading higher, led by live cattle futures -- which closed up 2.2% to $1.239 per pound. For livestock, the uptick comes as grocery stores and food service providers ramp up their sales of meat. " Consumer spending on food has increased dramatically since last spring and in May it hit a new all time record high," says Steiner Consulting Group. "Much of the talk at the start of spring was whether lifting Covid restrictions on foodservice would mean lower spending at retail. In the last two months, however, it appears that both food distribution channels managed to eke out gains." Lean hog futures finished trading up 0.2% to $1.185 per pound. (kirk.maltais@ wsj.com; @kirkmaltais)


  (END) Dow Jones Newswires
  06-15-21 1729ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

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