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Corn, Soybean Futures Turn Higher on Crop-Stress Concerns
Corn and soybean futures extended gains amid ongoing concerns about difficult weather and crop conditions.
Grain and oilseed prices were mostly lower overnight before reversing course. September corn futures rose 0.8% to $3.47 a bushel at the Chicago Board of Trade, while September soybean contracts climbed 0.4% to $9.64 1/2 a bushel. Wheat futures were mixed, with the September contract down 2% at $4.21 3/4 while later months rose.
Brazilian Ag Equipment Hits Rough Patch -- Market Talk
14:41 ET - Demand for farm equipment in Brazil sputtered in August, raising concerns that the strongest market lately for US equipment manufacturers may be running out of steam. Factory shipments of new farm tractors last month fell 7% from a year ago in August, while shipments of grain-harvesting combines were off 29%, a Brazilian trade association says. Shipments of sugarcane harvesting combines were down 74%. US equipment manufacturers Deere (DE), CNH Industrial (CNHI) and AGCO have relied on booming sales in South America this year to help offset the lingering weakness in North American equipment demand. JP Morgan says uncertainty about the availability of Brazilian government financing for farm equipment may have pulled some 2H equipment purchases into 1H. Looking ahead, equipment shipments are facing tough comparison figures from late 2016 when sales were juiced in advance of new engine emissions regulations that raised prices. "We caution that the risks are skewed to the downside," JPM says. (email@example.com; @bob_tita)
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Hurricane Irma Could Hit Restaurants in its Path -- Market Talk
14:27 ET - If Hurricane Irma makes landfall in Florida over the weekend, several restaurant companies will be affected, depending on the severity of the storm and its path. Restaurants with high rates of exposure to Florida, include BJ's (BJRI), Darden (DRI) and Cheesecake Factory (CAKE), each of which rely on Florida for 10% or more of their domestic restaurant base, according to Baird. Still, Baird says any impact to those and other chains is likely to only be temporary. (firstname.lastname@example.org)
Hog Futures Ease; Cattle Rise After Quiet Auction
Hog futures were mixed, easing after starting the week with an emphatic rally.
October lean hog futures at the Chicago Mercantile Exchange fell 0.3% to 63.55 cents a pound on Wednesday after rising over 3% a day earlier. Analysts said the rally created upward momentum in a market that has otherwise been under pressure.
Wholesale beef lost around a quarter of its value from early June to late August before prices began to steady last week. Beef rose $1.10 to $192.45 per 100 pounds on Tuesday, and continued to climb on Wednesday morning.
(END) Dow Jones Newswires
September 06, 2017 17:33 ET (21:33 GMT)