Wheat Higher Amid Russia-Ukraine Tensions - Daily Grain Highlights
January 24 2022 - 3:48PM
Dow Jones News
By Kirk Maltais
--Wheat for March delivery rose 2.6% to $8.00 1/2 a bushel on
the Chicago Board of Trade Monday as tensions increased at the
Russia-Ukraine border.
--Corn for March delivery rose 0.8% to $6.21 a bushel.
--Soybeans for March delivery fell 0.8% to $14.03 a bushel.
HIGHLIGHTS
Heightened Fears: CBOT wheat futures were higher Monday on news
that the U.S. has ordered several hundred troops on standby to
potentially deploy to Eastern Europe amid heightened tensions over
Russia's presence near Ukraine's border. NATO said allies were
sending ships and jet fighters to its northeastern and southeastern
member countries. "Wheat would have a tendency to be bid on a
military conflict in Ukraine...Russia and Ukraine are major
breadbaskets to the world," said Robert Yawger of Mizuho Securities
USA.
Quenched Thirst: Rainfall in Southern Brazil pressured soybean
futures Monday. Wetter weather in Brazilian soybean-growing areas
over the weekend eased concerns about dry conditions hurting crops
there. "Showers are forecast for southern Brazil, Paraguay, and
much of Argentina early this week as well," said Jack Scoville of
Price Futures Group. Research firm DTN is forecasting scattered
rainfall in both Brazil and Argentina through the first half of the
week, with temperatures near to above normal.
INSIGHTS
Holding On: Even with the steep drop seen in the Dow Jones
Industrial Average today, grain futures generally managed to avoid
that weakness. "Wheat and corn are performing very well amid such
financial market losses," said AgResource. The firm adds that the
uncertainty surrounding a potential Russia-Ukraine conflict is the
main source for the support, but traders have been amassing a large
net long position in grains, according to the CFTC's Commitment of
Traders report on Friday.
Leading Destination: China is the leading destination for U.S.
corn and soybeans inspected for export for the week ended January
20, the USDA says Monday. The USDA reported that soybean
inspections for the week totaled 1.3 million metric tons, while
corn inspections totaled 1.12 million tons and wheat inspections
totaled 400,973 tons. Corn and soybean inspections are down from
the previous week, while wheat inspections are up. China was the
destination for 347,449 tons of corn, as well as 640,876 tons of
soybeans - making it the leading destination for both grains.
AHEAD:
- ADM will release its fourth-quarter earnings report before the
stock market opens Tuesday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Thursday.
-Mondelez International Inc. will release its fourth-quarter
earnings report after the stock market closes on Thursday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
January 24, 2022 15:33 ET (20:33 GMT)
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