Soybeans Rise Ahead of Looming U.S.-China Tariffs Deadline
December 09 2019 - 4:03PM
Dow Jones News
By Kirk Maltais
--Soybeans for January delivery rose 0.9% to $8.97 1/4 a bushel
on the Chicago Board of Trade on Monday, with traders watching for
trade news ahead of the Dec. 15 deadline for the U.S. to place new
tariffs on Chinese goods.
--Corn for March delivery fell 0.3% to $3.75 3/4 a bushel.
--Wheat for March delivery fell 0.3% to $5.22 3/4 a bushel.
HIGHLIGHTS
Manic Monday: Soybeans rose on an unconfirmed report from
Reuters, which says Chinese importers purchased at least five bulk
cargo shipments of soybeans - 300,000 metric tons."Traders
speculate that China is making the soybean purchases as a goodwill
gesture with U.S./China negotiations ongoing," AgResource says.
Shorts Exit: Fund investors covered more of their short
positions, said Tomm Pfitzenmaier of Summit Commodity Brokerage.
"There were likely more than a few traders caught off guard by the
larger-than-expected short fund position as reported in the
Commitment of Traders report Friday afternoon," Pftizenmaier said.
For the week ending Dec. 3, managed money firms added 46,804 short
contracts, the CFTC said.
Harvest Help: A new bout of dryness in the central U.S. is
allowing farmers in northern states to finish their very late corn
harvesting -- which weighed on corn prices Monday. In North Dakota,
corn harvesting is listed at only 36% -- by far the lowest
percentage of harvested acres nationwide. In a normal year,
harvesting is usually finished in the Midwest and elsewhere by
October or November. However, ice and snow has slowed progress in
North Dakota.
INSIGHT
Waiting on WASDE: Tuesday's WASDE report isn't dominating
conversations among grains traders as much as other monthly updates
from the USDA this year. "No major changes [are] expected on U.S.
or world corn/bean balance sheets," said Doug Bergman of RCM
Alternatives. "World wheat stocks are expected to drop on lower
Australian production, but the report is expected to be a
non-event."
Weak Inspections: Export inspections of corn and wheat totaled
481,097 metric tons and 313,810 tons, respectively, according to
USDA data released Monday. Results are weak, particularly for corn
- which stays 7% below the pace needed to match USDA estimates for
export demand. Wheat, meanwhile, is pacing 1% above USDA
expectations. The report was bullish for soybeans with 1.33 million
tons inspected for export - 830,783 tons of which were destined for
China.
AHEAD:
-The USDA releases its World Agricultural Supply and Demand
Estimate report at noon Tuesday.
-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.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
December 09, 2019 15:48 ET (20:48 GMT)
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