Corn Rises Amid Hopes of New Chinese Buying -- Daily Grain Highlights
By Kirk Maltais
-- Corn for December delivery rose 2.4% to $5.39 1/2 a bushel on
the Chicago Board of Trade Monday, with grain traders anticipating
that a deal that exchanged a Huawei executive for two Canadian
prisoners in China may be followed with a large purchase of U.S.
-- Soybeans for November delivery rose 0.2% to $12.87 1/2 a
-- Wheat for December delivery fell 0.2% to $7.22 1/4 a
Let's Make a Deal: Corn futures were lifted Monday in reaction
to a diplomatic deal over the weekend that allowed Huawei executive
Meng Wanzhou to return to China after being detained in Canada on
behalf of the U.S. for nearly three years.
"The U.S. action is seen as a lessening of tensions, and the
rumors today were that it would soon be followed by some kind of
Chinese announcement of a major corn purchase," said Charlie
Sernatinger of ED&F Man Capital.
No such purchase of corn was announced by the USDA Monday.
Opportunity Knocks: The USDA reported a new flash sale of
soybeans to China Monday morning, with 334,000 metric tons of
soybeans sold for delivery in the 2021-22 marketing year.
It is the first flash sale of soybeans to China in over a week,
and comes as traders wait for indications about weather as
Brazilian farmers plant their new crop. A power shortage in China
has put a crimp on soybean processing.
Treading Lightly: This week's quarterly stocks report from the
USDA, due for release Thursday, has grain traders making limited
moves to begin the week, with only corn closing substantially
"Traders will become increasingly cautious ahead of the Sept. 30
report on quarterly stocks," said AgriTel.
Meanwhile, Friday's CFTC commitments of traders report showed
that fund traders posted limited selling of long positions in
grains for the week ended Sept. 21, although they are still net
long in grains as a whole.
Looking for a Dip: The USDA is expected to report drops in grain
stocks, according to analysts surveyed by The Wall Street Journal
this week. They predict stockpiles of corn at roughly 1.17 billion
bushels, stockpiles of soybeans at 172 million bushels, and
stockpiles of wheat at 1.86 billion bushels.
All three estimates would be down from the agency's previous
"These will be as of Sept. 1st and give a clear indication of
old- crop ending stocks on corn and soybeans," said Karl Setzer of
AgriVisor. "What would catch [the] trade by surprise would be
inventories on the high side as they would indicate last year's
crops may have been underestimated."
Progress Pushes On: Warm weather in the Midwest is helping
farmers get into fields to harvest crops.
"The Midwest will be dry with high temps ranging from the 70's
to the upper 80's," said AgResource. "The summerlike warmth and the
dry weather will maintain a fast harvest pace." The firm adds that
some rainfall is expected to hit the eastern Midwest this weekend,
which may cause some slowdown in harvesting.
The USDA's latest crop progress report Monday afternoon will
give traders a better idea of how much progress farmers have made
On the Upswing: After being down in recent weeks because of port
closures on the Gulf, grain export inspections are making a
comeback, according to data from the USDA. In its latest weekly
grain export inspections report, the USDA said that inspections of
U.S. corn totaled 517,539 metric tons, up from 403,422 tons the
Soybean inspections, meanwhile, totaled 440,742 tons, up from
277,297 tons last week.
Nearly half of this week's soybean figure was destined for
China, with other leading countries being Japan and Mexico.
-- 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 USDA is scheduled to release its quarterly grains stocks
report at noon EDT Thursday.
-- The USDA is due to release its monthly agricultural prices
report at 3 p.m. EDT Thursday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
September 27, 2021 15:49 ET (19:49 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.