Wheat Higher on Midwest Cold Snap
By Kirk Maltais
-- Wheat for May delivery rose 2.9% to $6.48 a bushel on the
Chicago Board of Trade Wednesday, with colder weather hitting the
Midwest that could damage winter wheat crops as harvest season
-- Corn for May delivery rose 2.4% to $5.94 a bushel, the
highest close since July 2013.
-- Soybeans for May delivery rose 1.5% to $14.10 a bushel.
Freeze Frame: Colder weather hitting the U.S. Plains this week
helped push up CBOT wheat futures Wednesday.
"Wheat will see readings fall very close to damaging levels in
portions of the Central and Southern Plains in the next few days as
the initial cold surge drops into our nation's midsection," said
Arlan Suderman of StoneX. Dryness is hitting Europe and damaging
wheat there, he added.
Lower temperatures and frost issues are expected to impact
winter wheat and early planted row crops, according to DTN.
Southern Exposure: Dryness in Brazil -- potentially impacting
the corn crop -- provided fuel for CBOT grain futures to rally
"There are concerns that late plantings in Brazil could smack
into drier conditions later in the season and impact the second
corn harvest," said Robert Yawger of Mizuho Securities USA.
Scattered showers are expected to occur in Brazilian
crop-growing areas later this week, according to DTN.
Corn Crunch: Corn futures trading on the CBOT neared the
$6-per-bushel mark Wednesday, the first time since mid-2013 that
they've reached that level.
"End users are reaching for tightening supplies which is
spurring nearby and summer basis gains," AgResource said, adding
that "a demand rationing rally is required in old-crop corn/soybean
to assure adequate stocks and that needed imports arrive."
Corn futures have climbed exponentially since last year, with
the most-active contract gaining 84% in the past eight months.
Wheat Watchers: More interest among big importing countries in
U.S. wheat is likely to be a source of momentum for wheat futures
Among the countries reportedly interested in purchasing new
export tenders include Algeria, the Philippines, Jordan, Japan, and
Ethiopia, said Terry Reilly of Futures International.
Fuel Gauge: U.S. ethanol production fell for the week ended
April 9, counter to expectations of analysts surveyed by Dow Jones.
Production of ethanol totaled 941,000 barrels per day, down 34,000
barrels from the previous week's EIA report. Analysts had expected
production to rise, by as much as 96,000 barrels per day.
Meanwhile, ethanol inventories fell as expected, dropping
124,000 barrels to 20.52 million barrels.
-- The USDA is scheduled to release its weekly export sales
report at 8:30 a.m. EDT Thursday.
-- The CFTC is due to release its weekly commitments of traders
report at 3:30 p.m. EDT Friday.
-- The USDA is scheduled to release its weekly export
inspections report at 11 a.m. EDT Monday.
-- The USDA is due to release its weekly crop progress report at
4 p.m. EDT Monday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
April 14, 2021 15:34 ET (19:34 GMT)
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