Wheat Rises on Diminished Canadian Forecast -- Daily Grain Highlights
By Kirk Maltais
-- Wheat for December delivery rose 2% to $7.00 3/4 a bushel on
the Chicago Board of Trade Tuesday in reaction to Statistics Canada
lowering its expectations for Canadian wheat production.
-- Corn for December delivery rose 1.4% to $5.20 1/4 a
-- Soybeans for November delivery fell 0.2% to $12.82 1/2 a
Downward Revision: A new report from Statistics Canada, the
data-gathering arm of the Canadian government, is cutting its
forecast for Canadian wheat production. The agency now forecasts
production at 21.7 million tons for 2021, which is down from
previous estimates for the year and last year's harvest of 35.2
The report is bullish for wheat futures, said Arlan Suderman of
Rating Reversed: CBOT corn futures rose Tuesday, which according
to AgriTel is a reaction to the crop rating published by the USDA
late Monday, which was down to 58% of good to excellent from 59%
last week. Soybean conditions, meanwhile, were unchanged at 57%
The USDA's report also showed the beginnings of U.S. harvesting,
with corn harvest 4% complete, down from 5% at this time last
Extended Streak: Analysts surveyed by Dow Jones this week say
that they largely expect inventories of ethanol in the U.S. to
extend their streak of declines. They forecast inventories to land
as low as 20.09 million barrels, versus 20.39 million barrels
reported last week by the EIA. Should the EIA report another drop
in inventories, it will be the seventh consecutive week that
ethanol inventories have fallen.
Meanwhile, daily ethanol production in the U.S. is expected to
stay level in this week's report. Analysts forecast a range of
913,000 barrels per day to 933,000 barrels per day, versus 923,000
barrels per day reported last week.
Leaving on a Jet Plane: Demand for sustainable and renewable
fuel for the aviation industry is expected to multiply by over 30
times in the next four years, said price-reporting agency
Fastmarkets. Global demand for sustainable aviation fuel is
expected to rise from 80,000 metric tons now to almost three
million tons -- or one billion gallons -- by 2025, according to
Fastmarkets. To meet that demand, an overall investment of $7
billion is needed among producers, says the agency.
Last week, the Biden administration introduced plans for a tax
credit for sustainable aviation fuel in an effort to meet 2030
-- The EIA is scheduled to release its weekly ethanol production
and stocks report at 10:30 a.m. EDT Wednesday.
-- The USDA is due to release its weekly export sales report at
8:30 a.m. EDT Thursday.
-- The CFTC is scheduled to release its weekly commitments of
traders report at 3:30 p.m. EDT Friday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
September 14, 2021 15:46 ET (19:46 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.