Wheat Futures Rise on Technical Surge and Black Sea Fighting -- Daily Grain Highlights
27 December 2023 - 7:34AM
Dow Jones News
By Kirk Maltais
--Wheat for March delivery rose 3.4% to $6.37 3/4 a bushel, on
the Chicago Board of Trade on Tuesday, with renewed fighting
between Ukraine and Russia helping drive the end-of-year
positioning being done by traders.
--Corn for March delivery rose 1.6% to $4.80 3/4 a bushel.
--Soybeans for March delivery rose 0.9% to $13.18 1/2 a
bushel
HIGHLIGHTS
Fresh Strikes: CBOT wheat were elevated in post-Christmas
trading, with futures taking strength from renewed hostilities
between Ukraine and Russia. "A Russian naval ship in Crimea was
damaged in an airstrike by Ukrainian forces, Russia's Defense
Ministry said Tuesday," said Naomi Blohm of Total Farm Marketing in
a note. "The landing ship Novocherkassk was hit at a base in the
city of Feodosia by plane-launched guided missiles, the ministry
said, adding that two Ukrainian fighter jets were destroyed by
anti-aircraft fire during the attack."
Underpinning the Bounce: Strong export inspections reported by
the USDA this morning provided support for the technical bounce
seen on the CBOT. Outside of the USDA showing inspections of over 1
million tons for both corn and soybeans for the week, prices have
rebounded from strong selling seen recently. "Nearly everything we
are seeing today is year-end positioning in the grains/soybeans,"
said Karl Setzer of Consus Ag Consulting.
INSIGHT
Still Underwater: CBOT corn prices rose today, as traders appear
to think that prices have fallen too low for now. "The market has
become a bit oversold and with the momentum indicators turning
higher Friday, some profit taking/short covering is possible," said
Tomm Pfitzenmaier of Summit Commodity Brokerage in a note. Even so,
supply and demand fundamentals are making it unlikely for prices to
rise much past the $5 a bushel mark in future sessions. "The corn
market ultimately needs to see some improvement in export sales
before we can see any lasting price improvement," said
Pfitzenmaier.
Behind Pace: Wheat export inspections reported by the USDA for
the week ended Dec. 21 improved from last week's showing, but total
inspections remain well behind last year. The USDA reported today
that wheat inspections for the week totaled 428,663 metric tons,
which is up from 284,792 tons the previous week. However, for the
2023/24 marketing year, wheat inspections remain down 21% from
2022/23, at 9.33 million tons. Corn inspections rose from the
previous week to 1.08 million tons, while soybean inspections fell
to 1.07 million tons.
AHEAD
--The EIA will release its weekly ethanol production and stocks
report at 11 a.m. ET Thursday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Friday.
--The USDA will release its monthly agricultural prices 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 Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
December 26, 2023 15:19 ET (20:19 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.