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Wheat Leads Gains in Grain, Soybean Futures
CHICAGO -- Wheat futures rallied Tuesday over deteriorating crop conditions, while corn prices rose to a multimonth high. U.S. Department of Agriculture figures released Monday afternoon showed spring wheat rated good or excellent declining to 55% from 62% last week, as unseasonably hot, drought-like weather develops in major growing states such as North Dakota and South Dakota.
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Demand Mixed in Brazil for Farm Equipment -- Market Talk
12:50 ET - Demand for farm machinery in Brazil was mixed in May, suggesting surging equipment sales may loosen momentum amid a weakening farm economy. Factory shipments of tractors rose 22% in May from a year earlier, says data from a Brazilian trade association. But shipments of grain harvesting combines dropped 21%. Strong demand from Brazil this year has helped Deere (DE), CNH Industrial (CNHI) and AGCO offset slumping sales in the US. But JP Morgan warns the good times in Brazil may not last. "The fundamentals for major crops in the region have deteriorated and are unlikely to support a rebound in equipment demand," JPM says in a note to investors. "Soybean farmers are barely profitable today despite record production" and there's the risk of "government subsidized financing packages [for equipment purchases] shrinking in 2H." (firstname.lastname@example.org; @bob_tita)
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U.S., Mexico Announce Agreement in Principle on Sugar Deal
WASHINGTON -- The U.S. and Mexican governments announced an "agreement in principle" Tuesday designed to avert a trade war over sugar, helping to set the course for bigger talks on rewriting the North American Free Trade Agreement. The preliminary pact imposes new limits on Mexican imports to the U.S., and appears to provide longer-term clarity to a market that has been overshadowed for three years by cross-border tensions and prospects of tit-for-tat sanctions over sweeteners from each country.
Sugar Prices Advance as U.S. and Mexico Reach Trade Deal
Sugar prices gained Tuesday, as the U.S. and Mexican governments reached an agreement "in principle" that would maintain Mexican sugar exports to the U.S. market. After an extended negotiation, U.S. Commerce Secretary Wilbur Ross and his Mexican counterpart, Economy Minister Ildefonso Guajardo, emerged at a joint news conference in Washington. Mr. Ross announced that "a new agreement and principle between the two governments" has been reached, which would allow Mexican sugar to continue to enter the U.S. market without being subject to antidumping and countervailing duties.
Feeder Cattle Futures Fall to Lower Limit, Reversing Course
CHICAGO--Cattle futures fell Tuesday, doing a U-turn after testing seasonal highs at the opening. Feeder cattle futures touched a fresh year high and live cattle futures climbed just short of their early May peak, but the contracts went south late in Tuesday's session. Analysts said that they were overbought after a recent rally sparked by high beef prices, lower cattle weights and wide meat-packer margins.
(END) Dow Jones Newswires
June 06, 2017 17:33 ET (21:33 GMT)