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USDA Expected to Forecast Ongoing Grain, Soybean Surplus
CHICAGO -- Traders are bracing for pressure on grain and soybean futures as large production and stockpiles continue into next year.
Analysts surveyed by the Wall Street Journal expect the U.S. Department of Agriculture to show a surplus of grain and oilseed extending into the 2017-2018 crop year in its monthly supply-and-demand report.
Corn, Soybeans Rise Ahead of USDA Report
CHICAGO--Corn and soybean futures rose on Tuesday ahead of a fresh batch of government supply-and-demand data.
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The U.S. Department of Agriculture will release its first forecasts for the 2017-2018 crop year, in which it is expected to show continued large grain and oilseed stockpiles.
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Egyptian Grain Silo Expansion Could Mean More GASC Activity -- Market Talk
11:49 ET - The ears of wheat traders will have pricked up in the course of the day, in the wake of reports that the Egyptian planning ministry has announced its intention to raise its silo storage capacity to 3.13 million in 2017-18 from 1.53 million tons in 2015-16. As the world's largest wheat importer, Egypt's state grain agency (GASC) moves markets when it tenders for wheat, and increased capacity could mean more tenders, a trader says. GASC's last wheat tender came on March 16, when it procured 420,000 tons of wheat. U.S. wheat prices are down 1.1% at $4.29 a bushel, EU wheat is up 0.15% at EUR169.50 a ton, and European milling wheat is down 1.49% at EUR165.25 a ton. (firstname.lastname@example.org; @davidhodari)
Chicken Processors Lift Wages to Draw Workers -- Market Talk
15:13 ET - Sanderson Farms (SAFM) is among meat companies boosting wages to attract and keep workers as employment rates have climbed. CEO Joe Sanderson tells investors that in response to tight labor availability in Texas, where the company runs three plans processing nearly 4M chickens weekly, Sanderson Farms in January boosted wages across all of its slaughter plants. Other meat companies similarly face labor difficulties, and Tyson Foods (TSN) in April said it plans to lift wages at some chicken plants and expanding training, as the industry grapples with low unemployment levels and competing rural employers like manufacturing plants. (email@example.com; @jacobbunge)
Higher Costs Drag on Dean Foods Earnings -- Market Talk
8:54 ET - Dean Foods (DF) swings to a 1Q loss as it reports an 18% rise in raw milk costs and higher costs as part of restructuring its operations. DF, one of the nation's largest producers of dairy products, reports a loss of $9.8M, or 11c a share, compared with a profit of $39.2M, or 43c a share, a year earlier. Its adjusted EPS of 13c, down from 42c a year earlier, misses analysts' estimates of 18c. But DF says despite declining US fluid milk sales, it had a slight gain in market share. DF delivers a slight beat on revenue, reporting net sales of $2B ahead of the $1.97B mean forecast. Shares rise 0.2% premarket on light volume. (firstname.lastname@example.org; @BowKnowsBiz)
Cattle Futures Reverse to Close Lower
CHICAGO--Cattle futures closed sharply lower on Tuesday, reversing course as a rally continued to lose momentum.
Futures opened higher in Tuesday's session only to do a U-turn after contracts fell through technical support indicators. The combination of lighter-weight cattle and soaring beef prices helped push prices higher in the recent futures trade, but analysts questioned whether levels had now outpaced demand.
(END) Dow Jones Newswires
May 09, 2017 18:32 ET (22:32 GMT)