Wheat Declines as Weather Turns Wetter
By Kirk Maltais
--Wheat for September delivery fell 1.8% to $6.52 a bushel, on
the Chicago Board of Trade Thursday, in response to rains in the
U.S. being expected to hit more growing areas than previously
--Soybeans for November delivery fell 0.7% to $12.91 3/4 a
--Corn for December delivery rose 0.1% to 5.36 a bushel.
Quenching Rains: Increased rainfall being forecast in U.S.
growing areas looks to have a strong effect on easing soil moisture
deficits seen in some areas--which pressured grains futures.
"Overall, today's models shift the rain shield a bit further to the
north and west, so most of Iowa should receive beneficial rains,
which is good since...that is ground zero for soil moisture
deficits," said Arlan Suderman of StoneX. "The overall trend...is
to intensify wetness over the central and eastern Midwest, while
also shifting it west." Improved soil moisture in the short term
will support nascent crops through a key portion of their
Better Prospects: While an outlook for increased rainfall in
U.S. growing areas had grain down across the board Thursday, wheat
in particular was pressured by improved prospects for the Black Sea
crop--the leading wheat on the export market. "Much like in some
parts of the EU, the delays to development experienced in the
spring have been caught up at least to some extent thanks to the
warm and wet weather of recent weeks," said Commerzbank. "The
prospects for the crop are now good." Commerzbank points to new
data from SovEcon as evidence of this, with the firm recently
raising its forecast for the wheat crop by 2 million tons to 84.6
Missing The Mark: Export sales of U.S. soybeans stayed low this
week--missing trader forecasts of a possible bounceback. In the
USDA's latest weekly export sales report released Thursday, soybean
export sales totaled 189,000 metric tons for the 2020/21 and
2021/22 marketing years combined for the week ended June 17. This
is well below the expectations of grain traders surveyed by The
Wall Street Journal this week, who had forecast sales to be as high
as 1.05 million tons. China posted a purchase of 66,000 tons in
2020/21, along with a reduction in sales for 2021/22 of the same
amount. This week, the USDA has announced multiple flash sales of
soybeans to China, including a sale of 330,000 tons Wednesday.
Quicker to Harvest: Farmers are getting heavily pitched on the
environmental benefits of using cover crops--plants that keep
growing on fields even during agricultural off seasons, improving
soil and capturing more carbon from the atmosphere. ADM CEO Juan
Luciano said at the WSJ Global Food Forum that there's a market
benefit as well. Farmers working with ADM on cover crop programs
have been able to harvest crops roughly two weeks earlier than
their neighbors, an advantage at harvest time when crop prices
typically slip as grain flows from farms to grain elevators and
--The USDA will release its monthly Cattle on Feed report at 3
p.m. ET Friday.
--The CFTC will release its weekly commitment of traders report
at 3:30 p.m. ET Friday.
--Conagra Brands Inc. will release its fiscal fourth quarter
earnings report before the stock market opens on Monday.
--The USDA will release its weekly export inspections report at
11 a.m. ET Monday.
--The USDA will release its weekly crop progress report at 4
p.m. ET Monday.
--Jacob Bunge contributed to this article.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
June 24, 2021 15:40 ET (19:40 GMT)
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