Soybean Futures Climb But Fail to Break $12/Bushel Barrier
By Kirk Maltais
--Soybeans for January delivery rose 0.3% to $11.81 a bushel on
the Chicago Board of Trade on Friday, paring gains after a move
higher couldn't breach the $12 threshold.
--Corn for December delivery rose 0.2% to $4.28 1/4 a
--Wheat for December delivery rose 0.1% to $5.99 1/2 a
Swing and a Miss: Soybeans started the day higher but couldn't
overcome the $12-a-bushel resistance level. The last time soybeans
traded above $12 was 2016 and this was the second time this week
that the January contract made a run at it, according to
AgResource. That, plus no reported sales of U.S. corn or soybeans
to China in nine days, caused a bout of profit-taking, AgResource
Fund Appetite: Grain futures as a whole turned higher after a
brief correction Thursday. "Fund attitude remains the driving
factor behind the market," said Karl Setzer of AgriVisor. "While
there are fundamentals that continue to be monitored, including
global weather and export demand, especially on soybeans, how we
see funds react is what is driving futures."
Possible Confirmation: More flash sales of corn exports were
announced Friday, with 158,270 metric tons of corn being sold to
Mexico and another 131,000 tons being sold to unknown destinations.
The designation "unknown destinations" is often attributed to
China, and some traders may take it as a sign that Beijing is back
in the market for U.S. corn. "Some traders are noting the increase
in CBOT futures are related to money flow," said Terry Reilly of
Volatile Situation: Most of the movement seen in grains futures
recently is due to dry weather in key growing regions, such as
South America and Russia. However, political uncertainty stemming
from the U.S. election and what it may mean for U.S.-China
relations could soon become a factor moving prices, said Fitch
Solutions. Although Fitch currently sees grains trading signals as
bullish, uncertainty over the future of President Trump's tariffs
on Chinese goods remain.
Parched Plains: Even with some hurricane-related rainfall
earlier this fall, the U.S. Plains -- where U.S. winter wheat is
generally grown -- have been dry. "Overall, 28% of the belt
received less than 50% of normal precipitation over the past 30
days with 10% receiving less than 25%, with the bulk of those
deficits in Texas, Colorado and in the northern two-thirds of
Kansas," said Arlan Suderman of StoneX. According to recent USDA
data, only 46% of the U.S. winter wheat crop is in good or
excellent condition, down from 52% at this time last year.
--The USDA releases its weekly grain export inspections data at
11 a.m. ET Monday.
--The USDA will release its monthly cold storage report at 3
p.m. ET Monday.
--The USDA releases its weekly crop progress report for the
2020/21 crop at 4 p.m. ET Monday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
November 20, 2020 16:01 ET (21:01 GMT)
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