TOP STORIES:
U.S. Corn, Soybeans Lower Amid Profit Taking; Wheat Mixed --
Update
CHICAGO--U.S. grain and soybean futures dropped Friday amid a
firmer U.S. dollar and profit taking by traders ahead of the
weekend. Soybean prices fell after advancing to a high of more than
five weeks in the previous session as the U.S. dollar notched
higher and traders booked profits following three days of gains.
Analysts said the declines come also following a wave of crop sales
by U.S. farmers on Thursday, when growers marketed some crops to
take advantage of higher prices. Forecasts for drier weather to
come after the weekend also buffeted prices, analysts said, as
waning precipitation likely will help farmers finish soybean
planting, which is running behind schedule.
Large Investors Expand Bearish Corn Bet -- Market Talk
Money managers added to bets on lower corn prices, according to
CFTC data for the week ended Tuesday. The large investors increased
bearish wagers by 29,837 contracts, for a net-short position of
120,171 contracts, up 33% from a week earlier. During the reporting
week, corn prices fell 3% to the lowest level in nearly eight
months, pressured by steady rainfall in the US Midwest, which
traders expected to largely benefit the development of newly
planted crops. Prices for the grain jumped afterward on signs
excess precipitation may have drenched some fields, though the corn
market closed lower on Friday, with corn prices down 1.3% at $3.53
1/4 a bushel in Chicago trading.
STORIES OF INTEREST:
Activist May Push ConAgra, Pinnacle Deal -- Market Talk
At least one analyst thinks activist investor Jana Partners'
newly-built 7% stake in ConAgra (CAG) will culminate in a merger of
CAG's branded foods--like Slim Jim and Marie Callenders--combining
with rival Pinnacle (PF). Jana, already a PF shareholder, is
pushing CAG to get sell its private-label business that's suffering
following what it sees as a botched acquisition of Ralcorp. "That
CAG is now in the crosshairs is not too surprising, at least not to
those who have watched the packaged-foods middleweight stumble
along" the past few years, says Gordon Haskett analyst Don Bilson.
CAG jumps 9.7% and PF gains 7.9%, with both spiking to fresh record
highs and extending their market-beating gains for 2015.
Hershey the Latest Food Maker With Sour Sales -- Market Talk
Hershey's (HSY) update this morning allows it to join a slew of
food makers cutting costs in light of sinking demand for packaged,
highly processed products--largely due to weakness in China. HSY's
planned belt-tightening comes after years of the company
outperforming the broader food industry. It has said its candy is
an "affordable indulgence" that US consumers splurge for despite
economic pressures and healthy-eating trends, and HSY has talked up
its China expansion. Yet this year, it has hedged its bets with the
acquisition of craft beef-jerky maker Krave and an announcement to
make changes to its iconic candy to have simpler ingredients. HSY
is down 3.3% at $89.21, putting it near the bottom of the S&P
500.
THE MARKETS:
U.S. Cattle Futures Climb on Short-Covering; Hogs Slide
Sharply
CHICAGO--U.S. cattle futures climbed at the end of the session
Friday, lifted by short-covering after worries about slack demand
pushed prices to the lowest levels in a month. June live-cattle
futures gained 1.475 cents, or 1%, to $1.5190 a pound at the
Chicago Mercantile Exchange, for a 0.4% drop over the past week.
Most-active August live-cattle rose 1.325 cents to $1.50675 a
pound. Feeder-cattle futures also advanced, with the front-month
August contract picking up 1.5 cents to $2.23425 a pound, little
changed from last Friday. Worries about waning demand from
retailers and processors for historically expensive cattle and beef
have weighed on futures in recent sessions.
Write to Jesse Newman at jesse.newman@wsj.com