Wheat Rises for Third Straight Session on Weaker Dollar
October 18 2019 - 04:10PM
Dow Jones News
By Kirk Maltais
--Wheat for December delivery rose 1.3% to $5.32 1/4 a bushel on
the Chicago Board of Trade on Friday as the U.S. dollar weakened -
causing wheat to rise for the third day in a row on prospects of
more foreign purchases of U.S. wheat.
--Soybeans for November delivery rose 0.3% to $9.34 a
bushel.
--Corn for December delivery fell 1% to $3.91 a bushel.
HIGHLIGHTS
Weather Helps Wheat: Rising wheat prices in South America are
allowing U.S. wheat prices to be more competitive in the market.
Friday's close is the highest wheat has traded at since late June.
Drought in Russia and Argentina are driving prices higher, said
Charlie Sernatinger of ED&F Man Capital. "Chicago looks like it
is overdone here, but that does not mean the market has to break,"
Sernatinger said.
China Buys U.S. Soybeans: Corn is leading the exchange lower
Friday, thanks to the 368,600 metric tons of export sales reported
- which was a total that fell into the low end of analyst
estimates. Meanwhile, soybean exports totaled 1.7 million tons,
including over 850,000 tons in exports to China. The soybean market
has been well bid amid hope for Chinese demand for U.S.
soybeans.
INSIGHT
Volatility Ahead: Grain prices are expected to remain volatile
over the short-term, as weather continues to affect grain
harvesting worldwide, Fitch Solutions said in a note Friday.
"Weather conditions continue to deteriorate in different countries,
supporting prices," the firm says - placing its 3-6 month outlook
for grains commodities at neutral-bearish, while keeping a mixed
view on prices in the next 12-24 months.
Good Morning Vietnam: Vietnam's fast-growing population is
expected to become a bigger consumer of U.S. agricultural products,
including grains and proteins like pork. During a press conference
Friday morning, USDA Undersecretary Ted McKinney said Vietnamese
interest in agricultural purchasing was "rapidly growing."
Vietnam's population totaled over 95 million in 2017, growing at a
faster rate than other nations like Japan and Thailand.
AHEAD:
--The USDA releases its weekly grain export inspections data at
11 a.m. EDT Monday.
--The USDA provides its weekly update on U.S. crop progress at 4
p.m. EDT Monday.
--The USDA will release its monthly cold storage report at 3
p.m. EDT Tuesday.
--Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
October 18, 2019 15:55 ET (19:55 GMT)
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