Wheat Rises on Global Winterkill Worries
By Kirk Maltais
-- Wheat for March delivery rose 2.3% to $6.85 1/2 a bushel on
the Chicago Board of Trade on Wednesday amid fears that cold
temperatures in places such as Russia would cramp the world wheat
-- Soybeans for March delivery rose 1.2% to $14.25 3/4 a
-- Corn for March delivery rose 0.8% to $5.57 a bushel.
Catching Cold: Wheat led grain futures higher Wednesday, with
traders focusing on cold temperatures in Russia after last week's
frigid spell in many parts of the U.S. The possibility of
winterkill crop damage in other parts of the world could further
pressure world wheat supply.
"There wasn't a clear catalyst to boost the wheat, but there are
several snippets around the globe," said ED&F Man Capital.
Hot Mess: Meanwhile, adverse weather in South America also gave
support for CBOT grain futures Wednesday "as traders point to
parched Argentine and South Brazilian weather forecasts and
building stress on reproducing 2nd corn/soybean crops," said
In Brazil, rainfall is making it hard for farmers to go into
their fields to harvest their grains, said DTN.
Hard Road: U.S. ethanol production fell significantly in the
past week in response to bitterly cold temperatures that hit the
U.S. Midwest, according to EIA data. Ethanol production fell to
658,000 barrels per day, down 253,000 barrels from last week, even
more than analysts predicted.
"Time will tell if the industry can recover back above 900,000
barrels per day by the end of this month," said Terry Reilly of
Meanwhile, ethanol inventories fell 1.51 million barrels to
22.79 million barrels.
Grace Period: In the wake of bitter cold temperatures descending
on farmlands across the country, the American Farm Bureau is asking
the government to extend the deadline for applying for CFAP -- the
Coronavirus Food Assistance Program -- which would supply farmers
$13 billion in aid.
"The current deadline is this Friday, February 26, but recent
severe weather and the suspension of CFAP payments led to
challenges and confusion surrounding the application process," said
Farm Bureau President Zippy Duvall in a letter addressed to new
Agriculture Secretary Tom Vilsack.
-- The USDA is due to release its weekly export sales report at
8:30 a.m. EST Thursday.
-- The USDA is scheduled to release its monthly agricultural
prices report at 3 p.m. EST Friday.
-- The CFTC is due to release its weekly commitments of traders
report at 3:30 p.m. EST Friday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
February 24, 2021 15:49 ET (20:49 GMT)
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