Wheat Futures Up Ahead of Russia-Ukraine Deadline -- Daily Grain Highlights
18 March 2023 - 07:32AM
Dow Jones News
By Kirk Maltais
--Wheat for May delivery rose 1.5% to $7.08 1/2 a bushel on the
Chicago Board of Trade on Friday, ahead of the expiration this
weekend of the Black Sea Grain Initiative.
--Corn for May delivery rose 0.3% to $6.35 1/2 a bushel.
--Soybeans for May delivery fell 1% to $14.78 1/2 a bushel.
Uncertain Times: Wheat traders were concerned about whether
talks between Russia and Ukraine to extend the Black Sea Grain
Initiative would be successful. The main issue is the length of the
extension, with Russia wanting to extend the deal for 60 days,
versus the original term of 120 days. This may cause confusion
among shipments that leave port after this weekend, Arlan Suderman
of StoneX said in a note. The deal is set to expire Sunday.
Moving Weight: Flash sales of U.S. corn to China reached 2.11
million metric tons this week, with the USDA confirming Friday
morning a sale of another 191,000 tons for delivery in the 2022/23
marketing year. As a result, corn futures gained over 3% this week
and could travel higher if China keeps up its pace of buying next
week. "We think they might be back in for another large round
before shifting to physical shipments from Brazil this June," Terry
Reilly of Futures International said.
Breaking the Bank: In the short term, concerns about the banking
sector are expected to be the chief focus for commodity traders,
Capital Economics said in a note. "Next week, attention will remain
firmly on any signs of stress in the global banking system," the
firm said. "If banking stresses appear to have been cauterized,
then commodity prices could rise over the week as risk appetite
U.S. May Fall to Second: For the first time since the marketing
year of 2012/13 Brazilian corn exports will exceed those from the
U.S., according to USDA forecasts. Brazil is expected to export 50
million tons, compared with 47 million from the U.S., according to
a USDA report. Corn exports from Brazil are expected to be a stiff
competitor to the U.S. going forward, with the country's acreage to
greatly surpass that of the U.S. However, U.S. yields are expected
to stay significantly better. "Possible Brazilian leadership in
corn exports may not be temporary," professors with the University
of Illinois' agricultural department said in a research note.
--The USDA will release its weekly grains export inspections
report at 11 a.m. ET Monday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Thursday.
--The USDA will release its monthly Cold Storage report at 3
p.m. ET Thursday.
--The USDA will release its monthly Livestock Slaughter report
at 3 p.m. ET Thursday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
March 17, 2023 16:17 ET (20:17 GMT)
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