GRAIN HIGHLIGHTS: Top Stories of the Day
06 February 2018 - 10:12AM
Dow Jones News
TOP STORIES:
Grain and Bean Futures Decline
U.S. grain and soybean futures all declined Monday, with some
upbeat export data failing to stem selling pressure after investors
trimmed short positions last week.
The benchmark wheat contract shed more than 1% and soybeans fell
0.9%, with March corn futures closing down 0.6%. Weather-related
concerns that buoyed markets for part of last week--ranging from
dryness in Argentina and the Great Plains to excessive rain in
parts of Brazil--dissipated over the weekend. Snow in the U.S.
alleviated some of the drought concerns affecting the wheat crop,
while Argentina was due for more rain as planting neared
completion.
U.S. Farmers Are Producing Too Much Food. Here's Why They Can't
Stop
Farmers are producing too much wheat and corn, dragging down
economic growth and pushing some farmers out of business.
Farming has unique challenges. Start-up and expansion costs are
large, investments take years to mature and the nation's vast
network of farmers is too disjointed to cooperate on production
cuts. This can result in an economic enigma: rising output amid
falling prices.
STORIES OF INTEREST:
Bayer Makes New Concessions for EU Regulators' Approval of
Monsanto Deal -- Update
Bayer AG (BAYN.XE) said Monday that it has made further
concessions to European regulators as part of its $63.5 billion bid
to acquire Monsanto Co (MON).
The German pharma company said it submitted "very significant"
remedies to the European Commission and that it is confident the
offered concessions fully address the regulator's concerns.
Sugar Prices Fall on Oversupply Worries -- Market Talk
1023 ET - Sugar prices are down, with supply concerns continuing
to weigh on the market. Sugar for March delivery is down 0.5% at
13.56 cents a pound. Prices have traded roughly sideways the last
few weeks after falling for much of January. Despite forecasts for
lower production in Brazil and globally in the 2018-19 growing
season, analysts expect the market to remain well supplied moving
forward. Lower energy prices and a stronger dollar are also
weighing. The declines come after CFTC data Friday showed
speculative investors increased bearish positions. JPMorgan Chase
analysts say clients are still constructive on sugar given after
declines in recent months have made the commodity relatively cheap.
ING analysts says industry experts at the ongoing Dubai Sugar
Conference expect a supply surplus to continue.
(amrith.ramkumar@wsj.com; @AmrithRamkumar)
THE MARKETS:
Hog Futures Jump on Winter Blast; Cattle Declines
CHICAGO--Lean hog futures climbed to their highest level since
mid-August as a snowstorm pummeled the biggest pork-producing state
in the U.S., potentially constraining hog supplies. Cattle
contracts fell.
February-dated hog contracts, set to expire in two weeks,
settled 0.9% higher at 75.87 cents a pound at the Chicago
Mercantile Exchange. It was the fourth consecutive gain for the
contract, which is up 4.6% since the beginning of the month.
(END) Dow Jones Newswires
February 05, 2018 17:57 ET (22:57 GMT)
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