By Kirk Maltais
--Corn for December delivery fell 4.1% to $3.76 1/2 a bushel on the Chicago Board of Trade on Tuesday, with traders continuing to respond to estimates for higher-than-expected yields and planted acreage.
--Soybeans for December delivery gained 1.1% to $8.89 a bushel.
--Wheat for September delivery rose 0.1% to $4.72 a bushel.
Burnt Corn: The December contract fell nearly 10% in the past two days and is at its lowest level since mid-May, driven by Monday's WASDE report showing 90 million acres of corn being planted by farmers, much more than traders anticipated. Monday's crop condition report didn't provide any bullish news to stymie the downward trend. "Funds that were closed out of selling yesterday came in today with a vengeance," said Charlie Sernatinger of ED&F Man Capital.
Hope Renewed: Soybean futures responded to the news that the U.S. will delay tariffs on $300 billion of Chinese goods, which traders took as a positive development in the U.S.-China trade negotiations. "Today, the glimmer of hope started to shine again," said Arlan Suderman of INTL FCStone. Also lifting soybeans were indications that planted soybean acreage in the U.S. is down for the 2019-20 season.
Lingering Doubts: Even though Monday's WASDE report was expected to be the definitive answer to the question of how many corn and soybean acres have been planted in the U.S., some farmers and traders remain skeptical of the USDA estimate for corn, given the tough weather conditions of this spring and summer. "Nobody believes the acreage report," said Sal Gilberte of Teucrium Trading.
Civil Unrest: Grains traders, particularly those invested in soybeans, are watching the pro-democracy protests in Hong Kong to see if the violence there will have any effect on the U.S.-China trade negotiations. "There are concerns that China may become involved in the protests in Hong Kong soon which could lead to sanctions and further complicate the U.S./China trade war," said Doug Bergman of RCM Alternatives.
-The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. EDT Wednesday.
-The USDA will release its latest weekly export sales numbers at 8:30 a.m. EDT Thursday.
-The National Oilseed Processors Association will release its crush statistics at noon ET Thursday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
August 13, 2019 16:12 ET (20:12 GMT)
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