Soybeans Stay Afloat on Indications of Stronger Demand

Date : 11/15/2019 @ 9:46PM
Source : Dow Jones News

Soybeans Stay Afloat on Indications of Stronger Demand

By Kirk Maltais

 

--Soybeans for January delivery rose 0.2% to $9.18 1/4 a bushel on the Chicago Board of Trade on Friday on a trifecta of solid export sales, a record soybean crush and positive comments about U.S.-China trade talks by a White House official.

--Wheat for December delivery fell 1% to $5.02 3/4 a bushel.

--Corn for December delivery lost 1.2% to $3.71 1/4 a bushel.

 

HIGHLIGHTS

 

China Buying Beans: Net soybean export sales totaled 1.25 million metric tons last week, with China accounting for 60%. Another positive sign of demand was the October soybean crush, which reached an all-time high of 175.4 million bushels, according to the National Oilseed Processors Association.

High Hopes: White House economic adviser Larry Kudlow said President Trump "likes what he sees" in trade negotiations between the U.S. and China, even if a "Phase One" deal has yet to be signed. Grains traders have been looking for any sign that the nearly two-year-old dispute is nearing an end.

Wheat's Weak Week: New export sales for U.S. wheat and corn remained weak. For wheat, new sales totaled 238,600 metric tons, down 34% from last week and 37% off from the prior four-week average. Corn sales totaled 581,600 tons, within analyst expectations but traders seemed unimpressed. Analysts polled by The Wall Street Journal had expected wheat exports between 250,000 tons and 500,000 tons and corn at 400,000 tons to 800,000 tons.

 

INSIGHT

 

U.S. Corn Crimp: Corn futures have fallen 7.5% in the past month, amid a bearish demand picture in the U.S. "There's been a consistent mantra in the corn market this year that demand is poor," said Arlan Suderman of INTL FCStone. "It is true that U.S. demand is soft, but globally we are still consuming more corn than we produce on an annual basis."

More Help for Farmers: The USDA has determined that farmers need another round of aid. Farmers will get 25% of the $14.5 billion promised under the Market Facilitation Program, aimed at easing the impact of the U.S.-China trade war. Based on the effects of the first round of aid, the latest funds are likely to help farmers stay afloat while waiting for the world's two largest economies to sign a deal.

 

AHEAD

 

--The USDA releases its weekly grain export inspections data at 11 a.m. ET Monday.

--The USDA provides its weekly update on U.S. crop progress at 4 p.m. ET Monday.

--The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. ET Wednesday.

 

Write to Kirk Maltais at kirk.maltais@wsj.com

(END) Dow Jones Newswires

November 15, 2019 16:31 ET (21:31 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.


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