Soybeans, Corn Fall Ahead Of Expected Rainfall In Brazil -- Daily Grain Highlights
20 December 2023 - 7:13AM
Dow Jones News
By Paulo Trevisani
--Soybeans for January delivery fell 1.1% to $13.12 1/2 a
bushel, on the Chicago Board of Trade on Tuesday, as markets
watched weather developments, with much-needed rainfall expected
across Brazil's growing regions.
--Wheat for March delivery rose 0.9% to $6.22 3/4 a bushel.
--Corn for March delivery fell 0.9% to $4.72 3/4 a bushel.
HIGHLIGHTS
Exports Boost: U.S. soybeans exports received another boost as
the USDA reported sales of 132,000 metric tons for delivery to
unknown destinations in the current marketing year. The flash
export news came after Monday's higher-than-expected increase in
weekly export inspections, which bolstered prices. Meanwhile, South
American production remained uncertain as dry weather conditions
hurt crops in the region while rainfall is expected for the next
few days.
Wheat Recovery: Wheat futures broke out of morning softness,
while soybeans and corn prices fell. "Grains are mostly lower on
lack of fresh news, although another round of global wheat import
tenders is underpinning higher protein wheat," Marex's Terry Reilly
said in a note. He added that Russian wheat at $260 a metric ton
was the lowest offer for Egypt's import tender. Meanwhile, low
volumes are expected through the end of the year "to knock around
prices," Reilly said. Traders are also watching rainfall expected
to help Brazilian crops.
INSIGHT
Corridor Works: A humanitarian corridor meant to allow Ukrainian
grains into export markets is working, AgResource said in a note.
The exports flow, in turn, put downward pressure on prices. "Large
existing Black Sea supplies continue to act as a weight on CBOT
grain rallies, with Ukrainian corn buyable for nearby shipment,"
AgResource said.
Argentine Flows: Wheat found support in speculative short
covering, AgResource said. The firm also said that storm damage at
the Bahia Blanca port in Argentina means that some terminals could
be shutter or restricted. "Bahia Blanca is a major hub for
Argentine wheat exports in Dec-Jan." AgResource added that
"Argentine flows of winter crops will be reduced."
AHEAD
--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 Livestock Slaughter report
at 3 p.m. ET Thursday.
--The USDA will release its monthly Cattle on Feed report at 3
p.m. ET Friday.
--The USDA will release its monthly Cold Storage report at 3
p.m. ET Friday.
--The USDA will release its quarterly Hogs and Pigs report at 3
p.m. ET Friday.
--The CFTC will release its weekly Commitment of Traders report
at 3:30 p.m. ET Friday.
Write to Paulo Trevisani at paulo.trevisani@wsj.com
(END) Dow Jones Newswires
December 19, 2023 14:58 ET (19:58 GMT)
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