Soybeans Fall as Traders Reap Profits
By Kirk Maltais
-- Soybeans for March delivery fell 1% to $14.16 3/4 a bushel on
the Chicago Board of Trade Friday, with traders taking the
opportunity to sell futures for profit as crushing margins in China
-- Corn for March delivery fell 0.5% to $5.31 1/2 a bushel.
-- Wheat for March delivery rose 0.8% to $6.75 1/2 a bushel.
Run for the Money: After a week where both corn and soybeans saw
big rises following the release of the USDA's WASDE report on
Tuesday, grains traders and farmers sold off some of their
positions Friday. In addition to profit-taking, signals globally
contributed to negative momentum.
"Beans were down most of the session, reacting to dropping crush
margins in China, with a dose of profit-taking in front of the long
weekend," said Charlie Sernatinger of ED&F Man Capital.
Export Markup: Wheat futures on the CBOT traded higher Friday
and the rise was attributed to higher Russian wheat export duties
being confirmed. Russia announced it will place a EUR50
per-metric-ton ($61 per ton) duty on its wheat exports beginning
March 1 continuing into June 30.
"The aggressive wheat duty is a de facto Russian wheat export
ban," said AgResource. "Other primary exporters including the U.S.
will fill world demand."
Ravenous Appetite: The USDA reported more new flash sales of
U.S. grain exports Friday morning, suggesting to some traders that
buyers want to lock in soybean exports before prices run up
further. USDA said 318,000 metric tons of soybeans were sold to
unknown destinations for delivery in the 2021-22 marketing
"New-crop 2021 soybean sales have been picking up lately,
suggesting to some that buyers are worried about potential
tightness into the next marketing year that could keep prices high
into next year," said Arlan Suderman of StoneX.
Friday's announcement makes it 1.1 million tons of soybean
exports sold via flash sales in the past week after a lull in sales
in previous weeks.
The Struggle Continues: The tussle over ethanol in the final
days of the Trump administration were ramped up Friday. The EPA
released the text of a notice it plans to release in next week's
Federal Register that states that the agency is considering further
waivers for small oil refineries due to Covid-19 pandemic-related
"These petitions argue that recent events warrant EPA exercising
its general waiver authority on the basis of severe economic harm,"
the EPA said in the notice.
The notice sparked condemnation from groups representing the
renewable fuels industry. "This is nothing more than one last
desperate attempt by the refiners to undermine the RFS and protect
their chokehold on the nation's fuel markets," said the Renewable
-- The Chicago Board of Trade will be closed Monday in
observance of Martin Luther King Jr. Day. It will reopen
-- The USDA is scheduled to release its weekly export
inspections report at 11 a.m. EST Tuesday.
-- The USDA is due to release its weekly export sales report at
8:30 a.m. EST Thursday.
-- Railroad operator Union Pacific is scheduled to release its
fourth-quarter 2020 earnings at 8:45 a.m. EST Thursday.
-- The EIA is due to release its weekly ethanol production and
stocks report at 10:30 a.m. EST Thursday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
January 15, 2021 15:25 ET (20:25 GMT)
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