TOP STORIES:
Wheat Rebounds on Dryness Worries
Wheat for December delivery rose 0.6% to $5.58 a bushel on the Chicago Board of Trade Tuesday in reaction to dryness in the U.S. and South America possibly impacting the planting of winter wheat crops. Dry weather was a topic at the forefront of markets Tuesday, driving CBOT wheat futures higher, said Rich Nelson of Allendale Inc. "In the trades' mindset, they're hyped on plains dryness and the situation in South America," said Mr. Nelson.
Congressional Leaders Debate Farm Aid Ahead of Spending Vote
WASHINGTON -- Congressional leaders on Tuesday were discussing whether to restore farm-aid funds and food assistance to a spending bill needed to prevent a partial government shutdown next month, Democratic aides said. House Democrats had planned to bring the bill, which would fund the government through Dec. 11, up for a vote later Tuesday. But they paused while leaders hashed out whether to make changes that would likely end the brewing partisan battle over the funds. Lawmakers have little time for a protracted clash over the spending legislation, since the government's current funding expires next Thursday.
STORIES OF INTEREST:
Grain Trader Interest in Soybeans Stay Strong -- Market Talk
13:12 ET - Even with grain futures falling yesterday, it appears managed money funds are comfortable staying long in soybeans--indications that rising soybean prices have a ways to go until they hit a top. "Soybean open interest rose to 974,373 contracts on Monday, which was just below the record open interest posted in April 2017 at 782,718 contracts," says Arlan Suderman of StoneX, adding that this was the 20th consecutive trading day in which open interest rose for soybeans. "Rising prices with rising open interest is one of the signs we look for in a bull market," says Suderman. "That doesn't tell you how high prices will go, but it does suggest some momentum behind the move." Soybeans started today higher, but are now down 0.3%. (kirk.maltais@wsj.com; @kirkmaltais)
China Buys More US Corn and Soybeans -- Market Talk
09:34 ET - The streak of Chinese purchases of US agriculture exports continues today, with the USDA confirming China has bought 140,000 metric tons of corn and 266,000 tons of soybeans. Additionally, 320,000 tons of corn were sold to unknown destinations, as well as 264,000 tons of soybeans. Grains traders are happy to see the string of purchasing--which dates back to the beginning of the month--continue, but are currently in the midst of profit-taking after soybean futures hit their highest levels in over two years. "The bean outlook is supportive on improved demand from China as well as the need to add some risk premium ahead of the SA growing season, but the market was overheated and in need of a correction," says Doug Bergman of RCM Alternatives. (kirk.maltais@wsj.com; @kirkmaltais)
Russian Wheat Cheapest on Offer at Egyptian Tender
Russian wheat was the cheapest offered at an Egyptian international wheat tender on Tuesday, at $242 a metric ton, according to a line up of offers seen by The Wall Street Journal. Egypt's General Authority for Supply Commodities launched the tender late Monday to buy an unspecified amount of wheat for shipment between Nov. 21 and 30. The tender received a total of 13 offers, of which three were for French wheat, nine for Russian wheat and one for Ukrainian wheat.
THE MARKETS:
Hog Futures Close Up 4.1% -- Market Talk
14:59 ET - Lean hog futures trading on the CME close up 4.1%, at 64.1 cents per pound. Today's uptick cuts off the correction seen in hog futures after they found a near-term high following news that African swine fever was discovered in a wild boar carcass in Germany. Today's uptick was based mostly on views about Chinese pork supplies. "This came on the heels of a report that China may only have 100,000 metric tons of pork remaining in storage facilities," says Karl Setzer of AgriVisor. "If correct, this is only about a two to three-month pork supply for the country. This may also lead to elevated pork imports, even higher than the already record purchases and imports we are seeing." Meanwhile, live cattle futures closed down 0.4% at $1.10175 per pound. (kirk.maltais@wsj.com; @kirkmaltais)
