Soybeans Slide as Investors Retreat to Safe Havens -- Daily Grain Highlights
By Kirk Maltais
--Soybeans for November delivery fell 1.7% to $12.62 1/2 a
bushel, on the Chicago Board of Trade Monday, with investors taking
the potential default of China Evergrande Group as a reason to
withdraw from commodities and equities alike.
--Wheat for December delivery fell 1.1% to $7.00 3/4 a
--Corn for December delivery fell 1% to $5.21 3/4 a bushel.
Pressure Point: The potential default of China Evergrande Group
sent investors fleeing commodities and equities as a whole in favor
of safe-haven investments. The fallout of such a failure is hotly
debated among grain traders today. "We can assume that the CCP will
do what it deems necessary to prevent the possible fall of
Evergrande from pulling its economy down with it, which should
maintain demand for commodities if it is successful in doing so,"
said Arlan Suderman of StoneX. "However, it will not be concerned
if the downfall has other victims overseas."
Harvest Outlook: Also weighing down CBOT grain futures Monday
were indications that farmers had a productive weekend of
harvesting - supporting the USDA's forecasts of higher crop yields.
"There is a lot of trade apprehension about potential harvest
pressure and demand uncertainty after the poor export sales report
last Thursday," said Tomm Pfitzenmaier of Summit Commodity
Brokerage. "The trade focus for the next few weeks will be on
combine results as the trade tries to figure out if the U.S. yield
is as good as the USDA has been indicating."
Turning the Corner: The USDA said Monday that grain export
inspections have rebounded in the past week, with ports in the Gulf
damaged by Hurricane Ida beginning to show signs of life. In this
week's report, the USDA said that for the week ended September 16
corn export inspections totaled 403,104 metric tons, soybean
inspections totaled 275,169 tons, and wheat inspections totaled
563,390 tons. For corn and soybeans, their totals are sharply
higher from last week's figures. China was a big destination for
U.S. corn this week, with shipments totaling 140,245 tons, second
only to Mexico. China was also a leading destination for U.S. wheat
Cyber Victim: An Iowa farm cooperative is the latest cyberattack
target. Fort Dodge, Iowa-based New Cooperative said it's dealing
with a cyberattack that has hit its systems and devices, and while
the farmer-owned company says it has been able to contain the
incursion, it's still working to bring its systems back online as
it works with law enforcement. The attack, which cybersecurity firm
Recorded Future has attributed to the Black Matter ransomware
group, follows a separate cyberattack that hit meatpacking giant
JBS in late May, hobbling its processing plants and leading the
company to pay an $11 million ransom. New Cooperative is working to
transport grain to livestock and poultry farms that rely on the
cooperative for feed supplies, a person familiar with the matter
Shift in Source: With the renewable fuels markets expected to
explode this decade, U.S. soyoil capacity is expected to quickly
max out - with the market already at nearly 90% capacity
utilization, said Mac Marshall of the U.S. Soybean Board. As a
result, the U.S. may need to import more soyoil in order to meet
the growth in demand from the automotive and aerospace industries.
Whether or not imports are needed depends largely on how much
announced capacity expansions get built, Mr. Marshall said. "We're
just going to have to see over the next couple of years," he says.
In trading Monday, CBOT soyoil futures finished down 2.5% to
roughly 55 cents per pound.
--General Mills Inc. will release its fiscal first-quarter
earnings before the stock market opens on Wednesday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--The USDA will release its monthly cold storage report at 3
p.m. ET Wednesday.
Jacob Bunge contributed to this article.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
September 20, 2021 15:31 ET (19:31 GMT)
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