Wheat Futures Get Lift From Global Flashpoints
January 21 2020 - 4:09PM
Dow Jones News
By Kirk Maltais
--Wheat for March delivery rose 1.9% to settle at $5.81 1/2 a
bushel on the Chicago Board of Trade on Tuesday, after hitting a
17-month high intraday on speculation that troubles in Australia,
France, Russia and the U.S. could lead to reduced supplies.
--Corn for March delivery lost 0.5% to $3.87 1/2 a bushel.
--Soybeans for March delivery fell 1.5% to $9.16 a bushel.
HIGHLIGHTS
Wheat Worries: Supplies are at risk from a number of global
factors. "French grain markets are embroiled in a labor/transit
strike while Russian farmers are tight-fisted with existing old
crop wheat stocks," AgResource said. Added to those worries are
estimated damage to crops in Australia from widespread fires and
record-low U.S. wheat acres.
Bean Voyage: Soybean exports inspected by the USDA came in at
the high end of traders' expectations, totaling nearly 1.2 million
metric tons. About 551,000 tons were allocated for export to China,
according to the USDA, a 33% increase over the previous week.
Still, traders were skeptical Tuesday. "Doubt over the benefit of
the phase one agreement working is growing, with some economists
calling the projected Chinese import levels unrealistic," said Karl
Setzer of AgriVisor.
INSIGHT
Bean Bulls: Managed-money firms have taken a net long position
on U.S. soybeans for the first time since late November, according
to CFTC data, possibly indicating hopes that the U.S.-China trade
deal, signed last week, would lead Beijing to buy more beans.
AHEAD
--The EIA releases its weekly update on ethanol production and
inventories at 11 a.m. ET Thursday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
January 21, 2020 15:54 ET (20:54 GMT)
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