Corn Rises on Brazilian Crop Dryness
By Kirk Maltais
--Corn for May delivery rose 1.9% to $5.80 a bushel on the
Chicago Board of Trade Tuesday in reaction to dry conditions seen
in Brazilian crop-growing areas.
--Soybeans for May delivery rose 0.5% to $13.89 1/2 a
--Wheat for May delivery rose 0.3% to $6.29 3/4 a bushel.
Parched: Lack of rain in Brazil's crop-growing areas pushed corn
futures higher Tuesday as traders reacted "to drier-than-normal
weather for central Brazil's Safrinha corn crop and to a U.S. corn
planting pace that was slightly below trade expectations," says
Dave Marshall of Top Ag. Traders pushed corn futures back toward
its $5.85 [per bushel] pre-report high, according to Mr. Marshall.
Isolated showers are expected in Brazilian crop-growing areas the
rest of this week, according to DTN.
Early Look: The uptick in grains Tuesday was in part due to the
planting progress report released late yesterday by the USDA
showing farmers have planted 4% of their corn and 11% of their
spring wheat. While this exceeds the pace of last year, the figures
are actually lower than expected, said Marex Spectron. "It's
obviously still very early," adds the firm. The spring planting
season for corn, soybeans, and spring wheat typically lasts from
April until early June.
Tuesday Turnaround: Soyoil futures finished up 3% to 52.99 cents
per pound on Tuesday, a turnaround from yesterday's decline, and
providing support for soybean futures. For soyoil, part of the
reason for the higher trend is increased interest in export
purchasing. "Egypt's GASC seeks 30,000 tons of soyoil and 10,000
tons of sunflower oil on April 15 for arrival June 1--20," said
Terry Reilly of Futures International. Slim supplies of vegetable
oil have been pushing prices higher globally.
Follow Fundamentals: Strong supply-demand fundamentals for U.S.
row crops has become a new focus for grains traders following a
ho-hum reaction to the USDA's latest WASDE report released Friday.
"Strong underlying fundamentals tend to support traders buying the
breaks when they happen," said Arlan Suderman of StoneX. "Buyers
came back to take advantage of the recent break in grain and
oilseed prices today." The less-than expected growth in planted
acreage among U.S. farmers in March's prospective planting report
is providing consistent support for grain futures.
Growth Spurt: Analysts surveyed by Dow Jones expect U.S.
production of ethanol to climb this week to as high as 1.07 million
barrels per day, which would be the highest production since late
February of last year. For corn growers the return of daily ethanol
production to over 1 million barrels per day would be good news as
Covid-19 vaccines proliferate nationwide. Meanwhile, analysts
surveyed believe that ethanol stockpiles will continue to decline,
landing anywhere between 19.9 million barrels and 20.7 million
--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 Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
April 13, 2021 15:32 ET (19:32 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.