Corn Prices Recover As Demand From China Remains Strong
By Paulo Trevisani
--Corn for July delivery rose 1.4% to $6.52 1/2 a bushel on the
Chicago Board of Trade as export demand remains strong and despite
concerns about possible acreage increase.
--Soybeans for July delivery rose 0.08% to $15.87 1/2 a
--Wheat for July delivery fell 1.1% to $6.99 3/4 a bushel.
Corn Sails To China: USDA's weekly report showed an increase in
grain-export inspections with China once more leading the pack.
Corn inspections increased to 74.5 million bushels for the week
ended Thursday, up from 67.6 million bushels in the previous week.
That's a little below AgResource's forecast of more than 75M
bushels. The research firm says it "continues to hear that China
remains active in sourcing new crop US origin corn." Export
inspections of soybeans and wheat also increased.
Another Bulky Order: On Monday, Chinese buyers ordered 1.7
million metric tons of corn, while 128,000 metric tons were sold to
Mexico, both for delivery during the 2021/2022 marketing year, the
USDA said. The report extends a buying spree that saw China-bound
orders coming in every day of the past week, underpinning markets
amid bearish acreage estimates.
Reality Call: A "major correction" is underway in wheat futures,
as weakening demand offsets lowered production outlook caused by
unfavorable weather forecasts, Price Futures said. "The dry weather
in ... parts of the Great Plains did not appear to make much
difference to Winter Wheat production and yields," the broker said,
adding "wheat remains a weather market, but the demand side has
been weak." On a more bullish note, Price Futures said corn prices
are high, "so demand for feed wheat could increase."
Acreage Volatility: The corn acreage that rattled markets last
week continues. AgResource points out that the June seeding report
is six weeks away, "and there will be a host of views of whether
farmers held to their rotations or seeded a considerable number of
extra acres." The research firm says that weak prices are keeping
farmers on hold, as "there are many chapters yet to be written in
terms of Northern Hemisphere weather and its impact on yield."
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Thursday.
--The USDA will release its monthly livestock slaughter report
at 3 p.m. ET Thursday.
--Deere and Co. will release its second-quarter earnings report
before the stock market opens on Friday.
--The USDA will release its monthly Cattle on Feed report at 3
p.m. ET Friday.
Write to Paulo Trevisani at email@example.com
(END) Dow Jones Newswires
May 17, 2021 15:38 ET (19:38 GMT)
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