Wheat Futures Fall as Export Demand Stays Weak -- Daily Grain Highlights
12 January 2024 - 7:23AM
Dow Jones News
By Kirk Maltais
-Wheat for March delivery fell 1.1% to $6.04 1/4 a bushel, on
the Chicago Board of Trade, with Thursday's export sales report
providing no evidence of improved wheat demand abroad.
-Corn for March delivery fell 0.5% to $4.57 1/4 a bushel.
-Soybeans for March delivery were unchanged at $12.36 3/4 a
bushel.
HIGHLIGHTS
Slip in Sales: CBOT wheat led the way lower for most of the day,
with the USDA's weekly export sales report showing
lower-than-expected wheat sales for the week ended Jan. 4. With
indications of demand being weak overseas as well, wheat couldn't
find momentum ahead of Friday's WASDE report from the USDA. "Wheat
tried the upside overnight, but slipped back under the waves, with
the undertow coming from weaker European prices, lack of export
demand, and intermarket spreading," said Charlie Sernatinger of
Marex in a note.
Attempt to Reverse: Soybeans also attempted to turn the corner
Thursday, but couldn't maintain a comeback - even though some
traders are expecting Friday's WASDE to spark a surge in prices.
"Much of what we are seeing in the grains/soybeans is final
positioning ahead of the WASDE data," said Karl Setzer of Consus Ag
Consulting. "Soybeans have the best chance of a bullish reaction
and that generated light buying in the complex."
INSIGHT
Missing the Mark: U.S. grain export sales mostly fell below the
forecasts of analysts for the week ended Jan. 4., the USDA said
Thursday. In its latest weekly export sales report, the agency said
wheat sales totaled 128,100 metric tons for delivery in the 2023/24
marketing year, while corn sales totaled 487,600 tons and soybean
sales totaled 280,400 tons. For soybeans and wheat, sales fell
below the estimates of analysts surveyed by The Wall Street Journal
this week, while corn sales landed on the low end of
expectations.
Sunny Days Ahead: The NOAA's Climate Prediction Center gives a
73% chance for the world climate to switch over to being ENSO
neutral this spring, changing over from El Niño this winter. A
neutral climate impacting the U.S. Corn Belt may pave the way for
an ideal planting season this spring. The agency says that it also
forecasts the climate will switch back into a La Niña system after
being neutral -- giving a 64% chance for a mild La Niña by
August.
AHEAD
-The USDA will release its monthly WASDE report at noon ET
Friday.
-The USDA will release its quarterly grain stocks report at noon
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
January 11, 2024 15:08 ET (20:08 GMT)
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