Wheat Slides as Traders Take Tentative Stance -- Daily Grain Highlights
By Kirk Maltais
--Wheat for September delivery fell 0.4%, to $6.74 1/2 a bushel,
on the Chicago Board of Trade on Tuesday, with grains traders
waiting to see if hot weather in growing areas keeps crop
conditions in a downward trend.
--Corn for December delivery fell 0.1%, to $5.46 1/4 a
--Soybeans for November delivery rose 0.1%, to $13.59 1/2 a
Looking for Clarity: Grains traders kept trading light Tuesday,
in anticipation for more clarity about hot weather's effects on
crop yields. "For most of June/July it has not paid to chase a
rally or push sales in a decline," said AgResource. "And traders
want to be careful not get too bullish until they can itemize U.S.
yield declines." Crop conditions were marked lower by the USDA in
its crop progress report yesterday--and grain traders anticipate
that next week's report will show conditions even more degraded,
amid hot and dry weather conditions.
Bad Sign: A drop in crop conditions reported yesterday by the
USDA provided some support for grains today. In the USDA's crop
progress report Monday, the agency said that 64% of U.S. corn is in
good-or-excellent condition, down one point from the same time last
year. Soybeans fell two points to 58% good-or-excellent, and wheat
fell two points to 9% good-or-excellent--an all-time low. "Given
the stage of the growing season we are in it is unlikely we will
see much improvement to these numbers," said Karl Setzer of
Building Up: Inventories of ethanol in the U.S. are expected to
again climb this week, according to analysts surveyed by Dow Jones
this week. According to analysts, ethanol inventories may climb to
as high as 23.5 million barrels--the highest stocks have been since
mid-February. This growth in stocks comes as Archer Daniels Midland
reported today that it sees vehicle miles traveled this summer as
back to pre-pandemic levels, and in some places surpassing that
Expanded Efforts: In its report today, ADM said a four-year
carbon capture effort situated around its Decatur, Ill.,
crop-processing facilities is paying off, and can be applied to
more of its operations in the future. Since 2017, ADM says that
about 20,000 feet of wells have sequestered more than 3 million
metric tons of carbon dioxide underground, and CEO Juan Luciano
said that expanding such carbon capture operations will let ADM
market more of its products as "low carbon intensity," while
lowering the carbon scores of its plants. "This is going to be a
growing part of our operations, for sure," Mr. Luciano said.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--Bunge Ltd. will release its second quarter earnings before the
stock market opens Wednesday.
--Pilgrim's Pride Corp. will release its second quarter earnings
after the stock market closes Wednesday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Thursday.
--Jacob Bunge contributed to this article.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
July 27, 2021 15:11 ET (19:11 GMT)
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