Wheat Futures Rise as Freeze Sets In
By Kirk Maltais
--Wheat for May delivery rose 0.9% to $6.53 3/4 a bushel, on the
Chicago Board of Trade on Thursday, with freezing temperatures
descending on Midwestern wheat-growing areas.
--Soybeans for May delivery rose 0.6% to $14.18 1/4 a
--Corn for May delivery fell 0.7% to $5.90 a bushel.
Frost Bite: Freezing temperatures have hit winter-wheat-growing
areas of the U.S. Midwest. "The cold has commenced, with
temperatures down to freezing overnight over the northern plains,
and due to get there tomorrow morning over the eastern belt," said
Charlie Sernatinger of ED&F Man Capital. Potential for frost
issues are expected to last until next week, according to DTN.
Backing Away: After briefly pushing through the $6-a-bushel
barrier, a level not seen since July 2013, most-active corn futures
trading on the CBOT backed off. Some traders seized their profits,
although many others may soon return buying corn with Thursday's
break. "Old-crop corn contracts remain under pressure at midday on
fears that high prices are rationing demand, but we are otherwise
seeing signs of buying the break once again in the complex," said
Arlan Suderman of StoneX.
Missing the Mark: Export sales of U.S. corn fell below the
forecasts of grains traders surveyed by The Wall Street Journal,
with new sales to China lacking. In the USDA's weekly export sales
report for the week ended April 8, corn sales totaled 380,300
metric tons for both marketing years. This is below the range
projected by traders surveyed this week, who had forecast sales to
land anywhere from 600,000 tons to 1.2 million tons. Sales of wheat
and soybeans were also lackluster, falling on the low end of trader
Foot on the Gas: The rate of soybeans crushed in March has
jumped from February's slump, although not as much as expected by
grains traders. According to the National Oilseed Processors
Association latest crush report, March crush came in at 178 million
bushels, up from 155.2 million bushels in February. However, grains
traders had expected crush to hit 179.2 million bushels this month,
said Terry Reilly of Futures International, making the report
negative for soybean futures. "NOPA March U.S. crush report was
slightly bearish for soybeans," said Mr. Reilly, adding that
soybean oil stocks came in lower than expectations, providing some
mitigation to this month's disappointment.
Good Signs: In a monthly report released Wednesday, the Federal
Reserve said that numerous indicators nationwide point to improving
prospects for the U.S. farm economy. The most telling indicator
noted by the Fed was the sharp uptick in prices for corn and
soybeans, with prices received for both crops on a steep ascent
that began last year. Meanwhile, federal aid and higher land values
are both positives for farmers, and an increase seen in fertilizer
costs in some parts of the country don't appear to be of a major
effect to farmers planting this spring -- as most had already
procured their fertilizer needs before prices rose in March.
--The CFTC will release its weekly commitment of traders report
at 3:30 p.m. ET Friday.
--The USDA will release its weekly export inspections report at
11 a.m. ET Monday.
--The USDA will release its weekly crop progress report at 4
p.m. ET Monday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
April 15, 2021 15:22 ET (19:22 GMT)
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