Wheat Futures Slide On Strong Dollar
By Paulo Trevisani
--Wheat for May delivery fell 1% to $6.46 1/2 a bushel on the
Chicago Board of Trade on Monday, as a stronger U.S. dollar makes
American grains less competitive.
--Soybeans for May delivery rose 0.3% to $14.33 3/4 a
--Corn for May delivery rose 0.3% to $5.47 a bushel.
Greenback Smackdown: Wheat inspections for export rose, but
futures prices slid mainly because of a strong dollar, Jack
Scoville of Price Futures said. Fears of losses in production
because of lower-than-usual temperatures are already priced in, Mr.
Scoville said. "The actual damage will take some time to see under
warmer temperatures, and it might take until harvest to see the
full effects of the recent extreme cold," he said. "We are affected
by the higher U.S. dollar and the fact that early harvest is
underway in the southern Great Plains."
Bullish Exports: The USDA revised corn and soybean export
inspections data higher for the week ended Feb. 25, as markets
remain focused on adverse weather in South America, said Terry
Reilly from broker Futures International, adding "that's probably
limiting some losses in the corn market," while soybeans are also
benefiting from late harvest in Brazil. The USDA reported 1.5
million metric tons of corn and 588,000 metric tons of soybeans
inspected in the week ended March 4.
Liquid Asset: Rain is expected to help Argentina's soy crop
starting next week, but for now dry weather is boosting soybean
prices. RJ O'Brien expects rain to substantially reduce dry areas
in the South American nation but notes that "forecast confidence
(is) low given erratic models." Besides the weather, high inflation
in Argentina is likely to divert potential exports to domestic
consumers, further reducing supplies for global trade. Meanwhile,
the USDA said inspections for exports of soybeans dropped last week
to nearly half the level seen the week before.
Wash Out: Excessive rain keeps hammering Brazil's soy farms,
with only 35% of this year's production harvested as of last
Thursday, down from 49% a year ago and the lowest level for the
period since the 2010/11 crop, Brazilian agricultural consultancy
AgRural said. "Precipitation worsens the delay that has been going
on since the sowing season, which was hurt by lack of humidity,"
AgRural said. Excess humidity now is also creating a transportation
problem, as grains need more time to dry, leading to longer waiting
time for truckers.
--The USDA will release its monthly supply and demand report at
noon ET Tuesday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Thursday.
--The CFTC will release its weekly commitment of traders report
at 3:30 p.m. ET Friday.
Write to Paulo Trevisani at firstname.lastname@example.org
(END) Dow Jones Newswires
March 08, 2021 15:39 ET (20:39 GMT)
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