Wheat Futures Track Global Prices Higher
November 19 2019 - 5:01PM
Dow Jones News
By Kirk Maltais
--Wheat for December delivery rose 0.9% to $5.12 a bushel on the
Chicago Board of Trade on Tuesday, with the U.S. contract following
European and Russian prices higher.
--Corn for December delivery rose 0.6% to $3.70 a bushel.
--Soybeans for January delivery rose 0.1% to $9.11 1/2 a
bushel.
HIGHLIGHTS
Global Wheat Fix: Black Sea and European wheat futures gained on
speculation that supplies from South America and South Africa could
shrink due to a lack of rainfall in those areas. That was enough to
push U.S. wheat higher. "Wheat rallied on chart buying and firmer
talk on Black Sea prices, with little hard news around," said
Charlie Sernatinger of ED&F Man Capital. The February Black Sea
wheat contract rose 0.5% on the CME, while the Euronext milling
wheat contract for December climbed 1.3%.
Winter Bluster: Corn harvests in the northern states are behind
schedule due to late planting and freezing temperatures, raising
the possibility of crops being left in the fields. North Dakota has
harvested 23% of its corn, compared with its five-year average of
85%, and Michigan has brought in about 39%, below its five-year
average of 75%.
INSIGHT
Shipping Out: Corn exports got a boost with a purchase of
191,000 metric tons of corn for delivery to unknown destinations in
the 2019/20 marketing year, the USDA said. This, combined with
Monday's sale of 132,000 tons, also to unknown destinations, makes
it over 300,000 tons sold just this week -- good news for those
looking for higher U.S. corn export figures. U.S. corn exports have
fallen more than 20% since the 2017/18 marketing year, in part due
to the Trump administration's trade policies.
New Year, New Forecasts: Traders must wait until January, when
the USDA's WASDE report is released, to get a fuller picture of
what the cold and snow have done to the 2019/20 corn crop. "Very
poor quality corn is being harvested in Minnesota, the Dakotas,
Nebraska and surrounding areas," said Joel Karlin of Western
Milling. Farmers also are facing the added expense of rising
propane prices as they try to dry their crops. For these reasons,
"some are forecasting a much lower harvested acreage and yield for
the 2019 U.S. corn crop in the January production report," Mr.
Karlin said.
AHEAD
--The EIA releases its weekly update on ethanol production and
inventories at 10:30 a.m. ET Wednesday.
--The USDA will release its latest weekly export sales numbers
at 8:30 a.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.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
November 19, 2019 16:46 ET (21:46 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.