Wheat Slides on Midwestern Rainfall
By Kirk Maltais
-- Wheat for May delivery fell 1.7% to $6.28 a bushel on the
Chicago Board of Trade Monday, with grain traders liquidating
positions amid rainfall in the Midwest.
-- Soybeans for May delivery fell 1.5% to $13.82 a bushel.
-- Corn for May delivery fell 1.4% to $5.69 a bushel.
Raindrops Keep Fallin': Grain traders saw rainfall in the
Midwest as supportive for planting by farmers.
"Decent rains fell over southeastern portions of the Northern
Plains spring wheat belt in recent days, providing valuable
relief," said Arlan Suderman of StoneX.
Wheat-growing areas such as the Dakotas are still dry overall,
while corn/soybeans-growing areas like Illinois and Iowa are
getting sufficient rain. Scattered rainfall is expected to continue
this week in crop-growing areas, according to DTN.
Rather Safe Than Sorry: Some grain traders spent Monday's
session ducking out of sizable long positions.
"Grain and soy futures are lower at midday on liquidation and
technical selling following the lingering disappointment from
Friday's April USDA report," said AgResource. The firm adds that a
lack of recent confirmation of new large purchases by China --
outside of a soybean purchase reported by the USDA Monday morning
-- has traders "cautious" this week. According to the firm, funds
have sold 5,800 contracts of corn, 7,200 contracts of soybeans and
3,500 contracts of Chicago wheat, with those futures contracts all
down in trading Monday.
WASDE Hangover: The results of Friday's WASDE report generally
met trader expectations, which didn't inject much excitement into
"WASDE has come and gone, wasn't any great surprises in the
figures with the USDA balancing out the soy balance sheet and
making adjustments to corn that were fairly well expected," said
U.S. corn inventories were forecast lower by the USDA at 1.35
billion bushels, down from a projection of 1.5 billion bushels last
month, while not changing its outlook for U.S. soybean ending
inventories at 120 million bushels.
Honing in on Planting: Grain traders are likely to begin paying
more attention to the USDA's weekly crop progress reports to get a
sense of how supportive the weather is for the nascent growing
"We continue to hear reports of active planting on corn as
farmers push ahead with fieldwork in an effort to capture the
old-crop/new-crop futures inverse," said Karl Setzer of AgriVisor.
"We are also starting to see more interest on weather which is not
uncommon once planting gets underway."
Nothing's Shocking: Soybeans trended down Monday despite
confirmation of new export sales to China and Bangladesh, with
132,000 metric tons of soybeans sold to China for the 2021-22
marketing year, and 55,000 tons sold to Bangladesh for 2020-21 and
another 55,000 tons for 2021-22.
The fact that most of the tonnage is for the next marketing year
isn't motivating traders to get active in soybeans, said Dan Hueber
of the Hueber Report.
"That really leaves us with last week's supply/demand reports --
old news -- and weather -- no major issues yet and a moist weekend
for the Midwest -- to focus on, which has obviously left the trade
somewhat uninspired," said Mr. Hueber.
Slow Movers: U.S. inspections of grains dropped for the week
ended April 8, although corn inspections are higher than this time
last year. In its weekly export inspection report, the USDA
reported inspections of U.S. corn totaled 1.6 million metric tons
for the week. That's down from 2.2 million tons for the previous
week, but still higher than 1.2 million tons inspected at this time
Meanwhile, both soybean and wheat inspections are lower than
they were at this point last year, at nearly 328,000 tons for
soybeans and just over 458,430 tons for wheat.
-- The EIA is scheduled to release its weekly ethanol production
and stocks report at 10:30 a.m. EDT Wednesday.
-- The USDA is due to release its weekly export sales report at
8:30 a.m. EDT Thursday.
-- The CFTC is scheduled to release its weekly commitments of
traders report at 3:30 p.m. EDT Friday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
April 12, 2021 15:58 ET (19:58 GMT)
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