Wheat Drops on Wetter World Weather -- Daily Grain Highlights
By Kirk Maltais
--Wheat for September delivery fell 1%, to $6.77 a bushel, on
the Chicago Board of Trade Monday, in reaction to indications of
higher amounts of rain in crop-growing regions globally.
--Soybeans for November delivery rose 0.4%, to $13.57 3/4 a
--Corn for December delivery rose 0.7%, to $5.46 3/4 a
World Watch: CBOT grain futures start trading this week lower,
with wheat staying lower throughout the day. The onset of rains in
both U.S. growing areas and other growing areas worldwide pressured
grains today, said Terry Reilly of Futures International. "Rains
are starting to pick up for Brazil which is needed for the wheat
crop and upcoming soybean planting season," said Mr. Reilly. In the
U.S., scattered showers were reported across growing areas over the
weekend, but more are needed to adequately replenish soil moisture,
In Wait: Many grains traders anxiously await the USDA's next
crop progress report at 4 p.m. ET to show if hot temperatures have
caused any further damage to crop conditions. "USDA will update its
crop ratings again this afternoon, providing more fodder," said
Arlan Suderman of StoneX. "It will be very hot in the west to
stress crops the next 4-5 days, before conditions moderate some
into next week."
Tense Relations: Grain traders are watching for news this week
on new Chinese purchases of U.S. grains exports. "Ag traders will
be watching to see if China returns following the U.S./China
meetings with new purchases of U.S. ag goods," said AgResource. "It
is expected that China will continue to fulfill its obligation
under the January 2020 Phase 1 Trade Agreement which is $43.6
billion in 2021. China needs the U.S.'s ag goods and trade is one
thing that both sides seem to agree on--a start for
communications." Relations between the U.S. and China have stayed
tense as the Biden Administration has continued many of the
policies enacted by the Trump Administration.
Main Destination: Corn export inspections remain largely
supported by inspections of exports destined for China, according
to USDA data. In the USDA's weekly report, corn export inspections
totaled 1.04 million metric tons for the week ended July 22. Of
that, inspections of corn destined for China totaled 489,820 tons.
China was also a destination for U.S. wheat, with inspections of
wheat destined for China totaling 67,634 tons for the week. In
total, wheat inspections totaled 477,964 tons.
--Archer Daniels Midland will release its second-quarter
earnings report before the stock market opens 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.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
July 26, 2021 14:59 ET (18:59 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.