Headlines:

  • Smithfield Foods Goes Online to Sell U.S. Pork in China
    The world’s largest pork company WH Group Ltd said on Tuesday its U.S. subsidiary, Smithfield Foods [SFII.UL], will for the first time sell its U.S.-produced pork online in China, via online retailer JD.com Inc. The move follows other international food companies that are looking to boost sales in the world’s top pork consumer through its vast e-commerce market, with a growing middle class developing a taste for branded and imported meat products. The fresh food division of JD.com, JD Fresh, will be the online sales platform for Smithfield’s pork products in China, according to an agreement signed by Smithfield, Henan Shuanghui Investment and Development Co, which is also owned by WH Group, and JD.com. Smithfield said in a statement on Tuesday that Shuanghui, Asia’s largest animal protein company, would be its domestic agent for the venture. WH Group bought Smithfield in 2013 in a $4.7-billion deal aimed at tapping the massive supplies of U.S. meat for export to China.
  • Coffee prices to ‘move higher’, as farmers win ‘battle’ with funds
    Marex Spectron, saying that funds are “too short, too soon” in arabica beans, flagged the prospect of a recovery in coffee prices, despite becoming the second commentator this week to raise estimates for world supplies. Coffee prices are “towards the bottom of a range”, the London-based commodities house said, flagging the squeeze on world supplies from a reluctance by Brazilian farmers to sell, after a harvest depressed in 2017 by being an “off” year in the country’s cycle of alternate higher and lower producing years. “Brazil is not a seller, reflected in Brazil exports being historically slow and differentials being very firm,” Marex said. “The supplier of 32% of the world’s coffee doesn’t like the price.”

Summary:

Rainfall is expected to continue in much of the eastern Midwest for the next seven days according to the National Weather Service but it still appears that the Western Corn Belt may dry out. Corn finished 2 cents lower after harvest activity picked up a bit with reports of better than expected yields. Competition from Brazil over the next few months looks to put some pressure on US Corn prices. Soybean futures were essentially flat with the November contract down 1 tick and the March contract up 3 ticks. Harvest activity is drawing closer to finishing for Beans in the US and planting in South America is projected to have favorable weather over the next couple of days. First notice date for the November contract is on deck for next week and Managed Money has already been rolling over positions onto forward contracts. Wheat futures finished the day down 3.25 cents and has returned to expected form. After bouncing off of support three days ago, it looks like it wants to make a run to perhaps test 415.