Wheat Plunges 2% Amid Concerns Over Global Demand -- Daily Grain Highlights
November 25 2022 - 3:56PM
Dow Jones News
By Paulo Trevisani
--Wheat for March delivery dived 2% to $7.97 a bushel on the
Chicago Board of Trade Friday amid fears that global demand will
weaken as China struggles to curtail Covid-19.
--Corn for December delivery rose 0.7% to $6.68.
--Soybeans for January delivery closed slightly higher, at
$14.36 1/4 a bushel.
HIGHLIGHTS
Domestic Support: Wheat futures plummeted toward the end of
Friday's shortened session, while corn and soybean futures extended
preholiday gains. Corn led the uptick. "The dry weather in
Argentina is certainly something to keep an eye on, but is not
critical at this point and the lack of export demand continues,"
Summit's Tomm Pfitzenmaier said in a report about corn. "The export
side of demand continues to be negative, but strength in the
domestic markets has been supportive."
Export Sales: Weekly exports of U.S. grain fell within the range
of analysts' forecasts in a WSJ survey. For the week ended Nov. 17,
the USDA said corn sales for the 2022-23 marketing year reached
1.85 million metric tons, soybeans hit 690,100 tons, and wheat sold
511,800 tons. Mexico and China were major destinations for those
export sales. The report, which is usually released on Thursdays,
was delayed this week due to Thanksgiving.
INSIGHT
Covid Threat: China's struggle with resilient Covid is having an
"adverse impact on ag import demand," AgResource said in a report.
"China has nearly finished its US soybean buying program, but South
American soybean imports could be adversely impacted by China's
broadening Covid outbreak," the research firm said. AgResource said
it "maintains a CBOT stance of selling strong rallies amid slowing
US export demand and favorable weather for a record large Brazilian
soy crop."
Resilient Prices: Grain prices are likely to keep experiencing
upward pressure next year as dry soil in North America threatens
crops, BMO's Aaron Goertzen said in a report. "It's not too late
for soil moisture to be replenished before the spring planting
season, but regions that have faced multiple years of drought will
require above-average precipitation to be fully rehydrated," he
said, adding that next year crop supplies are likely to remain
relatively tight, and prices stubbornly high. Goertzen added,
"while it is entirely possible that peak food inflation is behind
us, outright relief may not be in the cards any time soon."
AHEAD
-The USDA will release its weekly grains export inspections
report at 11 a.m. ET Monday.
-The CFTC will release its weekly commitment of traders report
at 3:30 p.m. ET Monday.
-The USDA will release its weekly crop progress report at 4 p.m.
ET Monday.
-Hormel Foods Corp. will release its Q4 earnings report before
the stock market opens on Wednesday.
-The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
-The USDA will release its monthly agricultural prices report at
3 p.m. ET Wednesday.
Write to Paulo Trevisani at paulo.trevisani@wsj.com
(END) Dow Jones Newswires
November 25, 2022 15:41 ET (20:41 GMT)
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