Soybeans Turn Higher on Chinese Export Purchases
By Kirk Maltais
--Soybeans for July delivery rose 1.3% to $14.15 a bushel on the
Chicago Board of Trade Monday as China bought more U.S.
--Corn for July delivery rose 0.6% to 6.59 1/4 a bushel.
--Wheat for July delivery fell 0.2% to $6.61 1/2 a bushel.
Back to Buying: After a prolonged absence from buying U.S.
soybean exports, China returned, with the USDA confirming China
purchased 336,000 metric tons of soybeans for delivery in the
2021/22 marketing year--with another 120,000 tons sold to unknown
destinations. "Beans were down hard overnight, but better crush
margins in China unleashed some pricing, and the market came back
during the day session," said Charlie Sernatinger of ED&F Man
Show of Support: Weakness seen in the U.S. dollar provided
support for grains futures amid signs of a resurgence in export
demand. The WSJ dollar index fell 0.4% Monday, this after a steady
run-up over the past week. "The selling wave in commodities has
evidently taken a breather today thanks in part to the weakness in
the U.S. Dollar," said independent trader Dan Norcini. A weaker
dollar makes U.S. exports more attractive to buyers, which combined
with news of new Chinese buying, helped spark strength.
Perception Matters: A change in thinking regarding
forward-looking weather forecasts helped boost grain futures
Monday. "The market is moving on market perceptions of weather
impact," said Arlan Suderman of StoneX. "Everything must go near
perfect from this point forward, and that's not currently in the
forecast for the western Midwest." Soil moisture continues to be
dry in the Northern Plains, even with rainfall over the
Issue of Quality: This afternoon's crop progress report from the
USDA is expected to show some reduction to the crop quality of U.S.
row crop. But the question remains as to how much that quality has
declined, especially considering the rainfall seen last week and
over the weekend. "Crop progress this afternoon is expected to show
modest declines in corn/bean ratings with stress in the middle of
last week offset by weekend rains," said Doug Bergman of RCM
Alternatives. Uncertain weather has sent CBOT futures on a volatile
course, he added.
Corn Pops: Export inspections of U.S. corn destined for China
rose in the past week, the USDA reported Monday. In its latest
grain export inspections report, the USDA said that China was the
destination for 794,475 metric tons of corn for the week ended June
17, up from last week. In total, inspections of U.S. corn totaled
1.48 million tons, which is down from last week's report.
--The USDA will release its monthly cold storage report at 3
p.m. ET Tuesday.
--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 quarterly hogs and pigs report at 3
p.m. ET Thursday.
--The USDA will release its monthly livestock report at 3 p.m.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
June 21, 2021 15:45 ET (19:45 GMT)
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