By Kirk Maltais

 

--Corn for May delivery rose 2.5% to $6.06 1/2 a bushel, on the Chicago Board of Trade Tuesday, as frigid temperatures stress crops in the Midwest and elsewhere globally.

--Soybeans for May delivery rose 1.5% to $14.72 a bushel.

--Wheat for July delivery rose 1.2% to $6.61 1/4 a bushel.

 

HIGHLIGHTS

 

Weather Squeeze: Cold temperatures in the Midwest boost CBOT grain futures - led by corn. "Grains have surged to fresh contract highs on Tuesday as freezing temperatures in the Midwest, continued dry weather in the U.S. northern Plains, the Canadian Prairies, parts of Europe & Brazil's Safrinha corn growing region threaten to further tighten 5-year-low global grain stockpiles," said Dave Marshall of Top Ag. Cold temperatures are expected to linger in the Midwest - particularly the Southern Plains -- over the next two days with more seasonal conditions returning in the next 7-10 days, according to DTN.

Explosive Beans: Today marked a six session winning streak for soybeans. "Beans are looking explosive as May needs to trade to whatever level it takes to move beans into delivery channels, or the longs that are expected to take delivery decide their hedge profits are high enough and that they can wait until cheaper beans are available," said Doug Bergman of RCM Alternatives. Soybean futures are nearing the $15 per bushel mark, which if reached would be the first time since June 2014.

 

INSIGHTS

 

Grand Slam: Corn futures edged over the $6 per bushel level on Tuesday -- to highs unseen since 2013. Even with corn prices at this level, futures still have upside left, said Peter Meyer of S&P Global Platts. "Calling a top at this point is just frivolous," said Mr. Meyers, adding that ethanol plants in the U.S. are experiencing difficulty procuring the corn they need for their daily operations. "These farmers are holding onto this stuff, they're not making it easy," said Mr. Meyers. "They're all looking for the home run."

Press Start: The uptick in grain futures today comes after Monday afternoon's USDA weekly crop progress report in which the USDA said farmers planted 8% of the corn crop, 3% of the soybeans crop and 19% of the spring wheat crop. "Even with less than ideal conditions we did see planting in the US last week," said Karl Setzer of AgriVisor. "We are starting to see an overall shift in market attitude. While old crop balance sheets are very much a factor in price discovery, we are starting to see more interest in new crop."

Burning Barrels: U.S. ethanol stockpiles are expected to continue their slide in this week's report from the EIA - with analysts surveyed by Dow Jones forecasting stockpiles falling to between 20.15 million barrels and 20.47 million barrels. If the EIA again reports a decline in ethanol stockpiles, it'll be the ninth consecutive week that ethanol inventories moved lower. Meanwhile, ethanol production is expected to climb, by as much as 20,000 barrels per day according to analysts.

 
AHEAD 
 

--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.

--Ethanol producer Valero Energy Corp. will release its first-quarter earnings before the market opens Thursday.

--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.

--The USDA will release its monthly cold storage report at 3 p.m. ET Thursday.

 

Write to Kirk Maltais at kirk.maltais@wsj.com

 

(END) Dow Jones Newswires

April 20, 2021 15:24 ET (19:24 GMT)

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