Wheat Slides on Coronavirus Fears
By Kirk Maltais
--Wheat for December delivery fell 3.5% to $5.54 3/4 a bushel on
the Chicago Board of Trade Monday, in response to fears in overall
markets regarding a possible resurgence of coronavirus in the
--Corn for December delivery fell 2.3% to $3.69 3/4 a
--Soybeans for November delivery fell 2% to $10.22 1/2 a
Flare-Up Fears: Grains futures traded lower, driven largely by
weakness in the larger macro markets. "Traders fear new Covid
restrictions out of Europe as we head into the winter months and
flu season," said Craig Turner of Daniels Trading. For grains,
Monday's risk-off mentality may give traders an opportunity to take
a breath before buying or selling more grains. "Traders are
questioning if this is a top formation or if we are in
consolidation," said Turner. "I think we are consolidating, and the
range could be big for soybeans, because both corn and soybeans
need to increase acres for 2021."
Fields of Dreams: Good weather for farmers to get out into their
fields to either begin or do more harvesting is putting pressure on
grains futures Monday, particularly in wheat. "A pronounced
ridge/trough upper-air pattern...should accelerate the U.S.
harvest," says AgResource. "The jet stream holds farther to the
north, which maintains a summerlike weather pattern with favorable
harvest conditions. The 11-15 day period keeps the warm/dry weather
profile in place with the soybean harvest to gain speed into the
Sales Streak: The streak of flash export sales to China
confirmed by the USDA is now up to 10 consecutive days, with the
USDA confirming a sale of 132,000 metric tons of soybeans to China
Monday, along with a sale of 132,000 tons of soybeans to Pakistan
and 171,000 tons of soybeans to unknown destinations. This export
sales activity has been the main reason that soybeans have jumped
to over two-year highs. However, even with confirmations of export
sales continuing, the strength in soybean prices may be running
out. "Beans technically are in an uptrend, but are extremely
overbought," said Doug Bergman of RCM Alternatives.
Inspections Slip: Export inspections this week announced by the
USDA are slightly down from the previous week--with corn totaling
755,111 metric tons, wheat totaling 469,939 tons, and soybeans
totaling 1.3 million tons. In all three cases, these categories are
lower from the previous week. China still remains the main soybeans
buyer--with 889,788 tons. China is also the main destination for
corn, and Japan is the main destination for wheat.
--The USDA releases its monthly cold storage report at 3 p.m. ET
--The EIA releases its weekly update on ethanol production and
inventories at 10:30 a.m. ET Wednesday.
--The USDA will release its latest weekly export sales numbers
at 8:30 a.m. ET Thursday.
--The USDA releases its quarterly hogs and pigs report at 3 p.m.
(END) Dow Jones Newswires
September 21, 2020 15:53 ET (19:53 GMT)
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