Corn Falls to Cap Volatile Week
By Kirk Maltais
-- Corn for July delivery fell 4.5% to $6.45 1/4 a bushel on the
Chicago Board of Trade Friday, staying in correction mode as funds
cut their exposure in long positions.
-- Soybeans for July delivery rose 0.4% to $15.96 a bushel.
-- Wheat for July delivery rose 0.9% to $7.07 1/2 a bushel.
Exit ... Stage Left: Funds that have maintained large long
positions in CBOT corn futures continued to reduce exposure
"CBOT futures are sharply mixed at midday with old-crop corn
pushing lower on continued liquidation," said AgResource. The firm
estimates that fund managers sold 22,000-26,000 contracts of corn
and 1,000-2,000 contracts of wheat Friday, while buying 4,200
contracts of soybeans. As of last week's CFTC commitments of
traders report, managed money funds held a net long position of
over 355,000 contracts.
Rollin' on the River: A closure of a bridge on the Mississippi
River to barge and vehicle traffic was a factor putting pressure on
grains futures Thursday, but the repair of the bridge throughout
the day supported futures, assuaging fears that an extended backup
in barge traffic would stifle grain sales. The bridge has since
reopened for barge traffic, according to the U.S. Coast Guard.
Far Ahead Bets: The USDA confirmed another flash sale of U.S.
corn to China Friday, with 1.36 million metric tons sold. The USDA
has now confirmed flash sales of U.S. grains every day for a week
now, with the bulk of the sales being corn to China.
However, most of these sales are for 2021-22 crop, with said
crop being planted now and yet to be grown.
Fat Chance: Underlying factors such as China's demand for
soybeans and Argentina's issues with its soybean crop have been
supportive for soyoil futures this year, but so is demand for
vegetable oil as a whole from the renewable fuels industry.
While producers of renewable diesel and other green fuels would
prefer to use animal fats as feedstock for their biofuels, there
simply isn't enough available to do so, said Juan Sacoto of IHS
Markit. Forty percent of all beef tallow and 80% of all used yellow
cooking grease is already sold to the renewable fuels industry, the
firm says, totaling roughly 2 billion pounds each.
Meanwhile, approximately 20 billion pounds of feedstock will be
needed for the industry in 2021, said Mr. Sacoto.
-- 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 firstname.lastname@example.org
(END) Dow Jones Newswires
May 14, 2021 15:57 ET (19:57 GMT)
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