Wheat Down as U.S. Weather Looks Favorable for Harvest
November 21 2019 - 04:19PM
Dow Jones News
By Kirk Maltais
--Wheat for March delivery fell 1.3% to $5.12 a bushel on the
Chicago Board of Trade on Thursday, amid anticipation that weather
in the U.S. Midwest will allow farmers to finish-up the fall
harvest in December.
--Soybeans for January delivery fell 0.4% to $9.01 a bushel.
--Corn for December delivery rose 0.5% to $3.68 1/2 a
bushel.
HIGHLIGHTS
December Dry Up: The expectation that farmers will be able to
get out in fields and finish up the harvest in December thanks to
improving weather weighed on wheat futures. Snowfall and a
generally soggy fall has hampered progress in harvesting wheat and
corn across the northern plains.
Snappy Soybeans: China helped drive soybean export sales above
trader expectations, snapping up 568,600 tons of the 1.52 million
metric ton total. But traders are waiting to see what happens with
U.S./China trade talks. China has invited its American counterparts
for a new round of face-to-face talks, according to people briefed
on the matter. The news comes less than a day after U.S. President
Trump said, "I don't think they're stepping up to the level that I
want."
INSIGHT
Brazilian Bombshell: While U.S. soybeans are currently being
offered on the export market at 33 cents below their Brazilian
counterparts, Tomm Pfitzenmaier of Summit Commodity Brokerage
doesn't see that leverage lasting. As we move into January, he
says, U.S. beans are now trading around a dime above Brazilian
offers, "and we anticipate that the business will move to South
American in late January/early February as those supplies start to
become available."
USDA Calls Audible: The USDA says crop progress reports will
continue past their Nov. 25 stop date. Citing "delays in harvest
progress this season," the USDA says it will continue to report
harvest progress each week until the harvest season appears
complete. Extending the reports will likely bring new clarity to
the grains industry, allowing traders to determine how much product
may be left on fields in the northern plains by the end of the
year, said Terry Reilly of Futures International.
AHEAD:
--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 CFTC will release its weekly commitment of traders data at
3:30 p.m. ET on Friday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
November 21, 2019 16:04 ET (21:04 GMT)
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