TOP STORIES: 
 

U.S. Corn, Soybeans Lower on Adequate Supplies -- Update

 

CHICAGO--U.S. corn and soybeans futures eased Wednesday as plentiful domestic supplies and friendly global weather pressured prices for the crops. Wheat rose. Corn prices settled at a fresh more-than-three-week low, buffeted by new evidence of ample U.S. stockpiles and concerns over demand for the grain. In a monthly report on Tuesday, the U.S. Department of Agriculture boosted its outlook for corn inventories at the end of the 2015-16 season in August on account of weaker-than-expected export sales of the grain. Still, losses in the market were limited, analysts said, because investors likely are unwilling to establish a large short position--or bet on lower prices--ahead of the U.S. growing season.

 
Ethanol Prices Erode as Supplies Swell -- Market Talk 
 

U.S. ethanol prices sink as government data shows domestic stockpiles of the biofuel jumped nearly 3% last week. Ethanol inventories in the week ended Feb. 5 grew to 23M gallons, a record according to analysts, as sliding oil prices threaten to discourage refiners from blending the corn-based fuel additive into the nation's gasoline supply. Low corn prices, however, have convinced producers to keep churning out supplies, with plants last week producing 969K barrels of ethanol per day, up 1% from 959K the previous week. March ethanol futures recently down 1.8% at $1.377/gallon.

 
   STORIES OF INTEREST: 
 

Corn-Crop Pressures Weigh on Andersons -- Market Talk

 

Bad weather and frustrated farmers help swing Ohio-based grain company Andersons (ANDE) to a $47M loss for the quarter ended Dec 31. ANDE says excessive rain over the spring hit regional farmers' corn yields, leaving ANDE less grain to trade, while farmers' distaste for declining corn prices prompted more of them to store their crops rather than selling it on to grain companies like ANDE. The firm's ethanol unit struggled as well, though its railroad division scored record results on busy tracks. Adjusting for a pension settlement and reduction of a stake in another grain firm, ANDE says it earned $5M for the quarter. ANDE settled 3.8% lower Wednesday, before the results were posted after the market close, and hasn't changed in after-hours trading.

 
For Monsanto, Three Roads Diverge in M&A Wood -- Market Talk 
 

Citi analysts see three paths for Monsanto (MON) as the biotech seed giant mulls whether to move on from long-sought merger with Syngenta (SYT), the Swiss pesticide powerhouse that last week agreed to a $43B takeover by China National Chemical Corp. MON could go it alone and focus on fixing up what Citi analysts call "the best house in a bad neighborhood" as ag-sector woes go on--but there's always M&A. Citi says MON could also look at buying pesticide assets from BASF or Bayer, though neither appears for sale, or MON could bide its time and, if the Syngenta-ChemChina offer is blocked for whatever reason, take yet another run at Syngenta. Besides last year's blighted attempt, MON and Syngenta talked combinations in 2011 and 2012.

 
   THE MARKETS: 
 

U.S. Cattle Futures Buoyed by Short-Covering

 

CHICAGO--U.S. cattle futures got a boost Wednesday from short-covering after prices fell to the lowest levels in nearly three weeks. February live-cattle futures rose 1.075 cents, or 0.8%, to $1.32475 a pound on the Chicago Mercantile Exchange. Cattle futures for April picked up 0.65 cent to $1.3180 a pound. Feeder-cattle futures for March rose 2.225 cents to $1.51225 a pound. Signs of sluggish buying interest for livestock and beef halted a multiweek rally on Monday and Tuesday, as investors bet that retailers will balk at slightly higher prices for meat.

 

Write to Jesse Newman at jesse.newman@wsj.com

 

(END) Dow Jones Newswires

February 10, 2016 18:18 ET (23:18 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Syngenta (NYSE:SYT)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Syngenta Charts.
Syngenta (NYSE:SYT)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Syngenta Charts.