Soybeans Fall as Bearish WASDE Expected
By Kirk Maltais
-- Soybeans for November delivery fell 1.2% to $8.67 1/2 a
bushel on the Chicago Board of Trade Friday with grain traders
saying next Wednesday's WASDE report will include information that
will bring a prolonged downturn to grains prices.
--Wheat for September delivery fell 1.2% to $4.95 1/2 a
--Corn for December delivery fell 0.9% to $3.20 3/4 a
Brace for Impact: Grains traders anticipate the WASDE report
will show elevated supply figures for U.S. crops. "Many analysts
are expecting to see elevated yield numbers, especially on corn
given recent growing conditions and crop reports," said Karl Setzer
of AgriVisor. According to Setzer, traders are expecting corn
yields to rise to 182 bushels per acre, while soybean yields rise
to 52 bushels per acre.
New Low: Wheat closed at just above $4.95 per bushel, the lowest
close of the most-active contract in a month. Wheat futures have
shed 6% in the past five sessions, and although some grain traders
say the market is overcompensating for reports of a
larger-than-expected Russian wheat crop. "Wheat is extremely
oversold on the current drop as global production ideas have
risen," said Doug Bergman of RCM Alternatives.
Defying Expectations: Chinese buyers have purchased an
additional 456,000 metric tons of US soybeans for delivery in the
2020/21 marketing year, the USDA said Friday morning. News of the
sale came as President Trump moves to limit the US operations of
Chinese apps TikTok and WeChat - a move that is expected to further
agitate Chinese officials. Prior to this sale being announced,
grains traders were growing frustrated with the current pace of
Chinese buying. "Chinese demand has slowed lately and with the good
weather across most of the soybean belt, there is not a lot of news
to boost prices," said Tomm Pfitzenmaier of Summit Commodity
Sweaty Palms: Palm oil prices, which have rallied recently, are
ripe for a correction, said Fitch Solutions. The market has now
priced in increased import demand from India, and China has
recovered so prices will likely ease as import demand in the second
half of the year slows down, it adds. The Bursa Malaysia October
palm oil contract is largely flat at MYR 2,766 a metric ton.
--The USDA releases its weekly grain export inspections data at
11 a.m. ET Monday.
--The USDA releases its weekly crop progress report for the
2020/21 crop at 4 p.m. ET Monday.
--The EIA releases its weekly update on ethanol production and
inventories at 10:30 a.m. ET Wednesday.
--The USDA releases its monthly WASDE report at noon ET
Lucy Craymer contributed to this article.
Write to Kirk Maltai at email@example.com
(END) Dow Jones Newswires
August 07, 2020 15:44 ET (19:44 GMT)
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