Corn Futures Fall as U.S. Harvest Progresses
By Kirk Maltais
--Corn for December delivery fell 0.6% to $3.64 3/4 a bushel, on
the Chicago Board of Trade on Tuesday after USDA data showed that
harvesting in the Corn Belt has progressed at a rate comparable to
--Soybeans for November delivery fell 0.3% to $9.93 a
--Wheat for December delivery eased 0.1% lower to $5.49 1/2 a
On Track: Monday's crop progress report appeared to show that
this year's harvest is in line with the normal pace. According to
the USDA, 15% of the U.S. corn crop has been harvested, only one
point off from the five-year average of 16%. Meanwhile, 20% of the
soybean crop has been harvested, up from an average of 15%. Karl
Setzer of AgriVisor said given current weather forecasts, the
harvests should make sizable advances next week too.
Debate Night: Anticipation of how the first debate between
President Trump and Joe Biden plays out caused jitters in grain
markets. "With tonight's presidential debate in mind, U.S.
benchmarks are peeling back from their overnight surge," said Bill
Baruch of Blue Line Futures. "With price action hovering around
unchanged, we too think it's smart to reduce risk ahead of
tonight's highly anticipated showdown."
Correction Extends: Soybean futures have fallen roughly 5% since
closing at a two-year high on Sept. 18. The weakness seems to be a
reaction to the disappearance of Chinese export demand in recent
days. "Current supply and demand data suggests that the world is
adequately supplied with the oilseed, providing little reason to
ration demand with higher prices," said Arlan Suderman of StoneX.
Still, soybean futures could recover under the right conditions.
"What if USDA continues to lower its production estimate by a few
more percentage points, and what if Chinese demand is stronger than
currently believed as it rebuilds its hog herd, and what if La Nina
gives Argentina a short crop?" Mr. Suderman said.
Absent Again: The USDA didn't report any new flash sales of
grains to China again, instead reporting 100,000 metric tons of
soybeans were sold to Mexico. Grains futures will need bullish news
from another source to resume any upward momentum, since the large
sales to China reported for most of September have paused. "A South
American or Russian weather problem is needed to sustain the CBOT
rally as China's recent foray of U.S. soybean purchases slows,"
--The EIA releases its weekly update on ethanol production and
inventories at 10:30 a.m. ET Wednesday.
--The USDA releases its quarterly grain stocks report at noon ET
--The USDA releases its monthly agricultural prices report at 3
p.m. ET Wednesday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
September 29, 2020 15:37 ET (19:37 GMT)
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