Soybeans Slide as Traders Liquidate -- Daily Grain Highlights
By Kirk Maltais
--Soybeans for November delivery fell 2.1%, to $13.49 1/4 a
bushel, on the Chicago Board of Trade on Friday, with traders
taking profits after yesterday's gains.
--Corn for December delivery fell 2%, to $5.45 1/4 a bushel.
--Wheat for November delivery fell 0.2%, to $7.03 3/4 a
Locking in Profits: Grain futures on the CBOT declined Friday
with traders taking profits even amid outlooks that July's weather
in U.S. growing areas has been even hotter and drier than expected.
"The volume of trade continues to be lite/limited which is
exacerbating daily trading ranges," said AgResource. "The green
radar blobs across South Dakota, Minnesota and Northwest Iowa have
not produced much rain, but the radar has set the bearish mentality
of Friday's CBOT trade."
Wetness Window: The expectation for increased rainfall in
parched growing areas like the Northern Plains was a source of
pressure for grains Friday--which storms traveling through to the
eastern Corn Belt throughout the day. "Storms are expected to track
southeast across the southwestern half of Iowa, northern Missouri,
into southern Illinois over the next 24 hours," said Arlan Suderman
of StoneX. "That's currently the Midwest's best opportunity for
rain over the next 10 days." Mr. Suderman notes that unless the
storm activity leads to lower crop ratings next week, traders are
viewing the rainfall as bearish for prices.
Small Time: While grains traders are keenly watching the weather
outlook in U.S. growing areas heading into August, the possibility
of a big rally sending prices back to near-record levels seen in
May is growing smaller, said Dan Hueber of the Hueber Report. "As a
group, these markets appear to have lost upward momentum, and while
individual commodities may see some fireworks in the weeks ahead,
witnessing a significant advance for all three is looking less
likely," said Mr. Hueber--adding that the results of various crop
tours next month will provide the next indication of how prices
will move, along with August's WASDE report.
Weekend Pattern: With weekend weather in growing areas being a
key area of focus for grains traders again, some traders are
anticipating trading going into Monday's session to follow a
familiar pattern. "The pattern over the last few weeks has been
that we get a bullish weather forecast Sunday afternoon, with a
rally on Sunday night, that inevitably fizzles and fails," says
Charlie Sernatinger of ED&F Man Capital. "I'm not saying that
it is a stone cold cinch this happens again, but if the forecast is
friendly Sunday, I suspect there will be traders lined up waiting
to sell this puppy."
--Green Plains Inc. will release its second quarter earnings
report before the stock market opens Monday.
--The USDA will release its weekly export inspections report at
11 a.m. ET Monday.
--The USDA will release its monthly grains crushings report at 3
p.m. ET Monday.
--The USDA will release its weekly crop progress report at 4
p.m. ET Monday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
July 30, 2021 14:53 ET (18:53 GMT)
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