Soybeans Rise on Weather Concerns
By Kirk Maltais
-- Soybeans for May delivery rose 1.1% to $14.33 1/4 a bushel on
the Chicago Board of Trade Friday in reaction to both adverse
weather conditions globally as well as limited inventories of soy
products such as soyoil.
-- Wheat for May delivery fell 0.2% to $6.52 1/2 a bushel.
-- Corn for May delivery declined 0.8% to $5.85 1/2 a
Fryday: Grain futures mostly turned lower Friday, with the
exception of soybean futures.
Soybeans largely are coasting off the strength of soyoil, said
Arlan Suderman of StoneX. "The soybean complex remains the strength
of the ag sector at midday," he said.
Soybean futures have now risen for four consecutive trading
sessions, climbing 3.4% in that timeframe based on cold
temperatures stifling U.S. planting and weather also causing delays
in Brazilian harvesting. Low inventories of vegetable oil globally
have supported soyoil prices with the U.S. most-active contract
closing up 2.6% to over 54 cents per pound Friday.
Deep Freeze: Grain futures on the CBOT were higher in pre-market
trading Friday, before paring gains during the day. The pre-market
uptick was seen as an extended reaction to cold temperatures
descending on the Midwest this week.
"Late season snows are flying across the Western Plains with a
few reports of sleet," said AgResource. "Low temps in the mid to
low 30's [are] widespread across the Central U.S. and the trend of
overnight lows in the 30's is forecast to continue into late April.
The outright chill will retard seed germination and emergence."
Absentee Slip: Thursday's export sales report from the USDA
showed little in the way of new sales to China, which pressured
grain futures Friday and may continue to in the short term,
particularly for corn.
"China has disappeared from the U.S. corn market, with the
second-largest economy failing to crack the top five destinations
for U.S. corn in the USDA data," said Robert Yawger of Mizuho
The USDA last confirmed a flash sale of U.S. corn exports in
March, that to an unknown destination.
Long and Short of It: Long positions held in CBOT grain futures
by managed money firms expected to show a decrease in Friday
afternoon's commitments of traders report from the CFTC.
In a note Friday, Marex Spectron said it forecasts net long
positions falling for the week ended April 13 for both corn and
soybeans. For corn, the net long is expected to be well down from a
decade high reached in early February.
In last week's report, the CFTC said managed money held a net
long positions of over 141,000 contracts in soybeans, and a net
long in corn of nearly 380,000 contracts.
-- 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.
-- The EIA is scheduled to release its weekly ethanol production
and stocks report at 10:30 a.m. EDT Wednesday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
April 16, 2021 15:46 ET (19:46 GMT)
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