Wheat Falls After Egypt Cancels Tender -- Daily Grain Highlights
By Kirk Maltais
--Wheat for December delivery fell 2.1% to $7.18 3/4 a bushel on
the Chicago Board of Trade Wednesday, after Egypt's grains buying
authority canceled a tender for wheat exports.
--Corn for December delivery fell 2% to $5.12 1/4 a bushel.
--Soybeans for November delivery fell 0.3% to $11.95 1/4 a
Change of Heart: Wheat futures led the CBOT lower Wednesday,
with a canceled tender by the Egyptian grains-buying authority
providing pressure to the futures contract. Egypt's General
Authority for Supply Commodities received 11 offers in the tender,
the cheapest of which was 60,000 metric tons of Ukrainian wheat
costing $325.25 a ton, according to a lineup of offers seen by the
Wall Street Journal. However, GASC made no purchases and instead
canceled the tender citing high prices. "GASC playing a game of
chicken yesterday that really did not work out for them," said
Richard Buttenshaw of Marex Spectron.
Jumping Ship: Large funds are turning away from CBOT grains
futures today, said AgResource. "Massive fund selling is pummeling
corn, soybean, and wheat futures," said the firm. "The selling in
the summer row crops is the leftover bearishness from Tuesday's
USDA crop report." Yesterday's WASDE report showed higher yield
estimates for U.S. corn and soybean crops.
Possibly Overdone: Soybean futures didn't fall as much as corn
or wheat, with grains traders having sold off heartily yesterday.
Yesterday's uptick in yield reported in the USDA's WASDE report was
the largest upward October revision in 8 years, said Tomm
Pfitzenmaier of Summit Commodity Brokerage. Even so, selling on
that news appears to have been overdone, he said. "The market ahead
of yesterday's report had already been assuming that the report
would be negative and had sold off, so yesterday's selling may have
been a little overdone, at least for the time being," said Mr.
Back on the Grind: The USDA confirmed a new flash sale of U.S.
soybeans to China, with 330,000 metric tons of soybeans sold there
for delivery in the 2021/22 marketing year. Additionally, the USDA
has confirmed that 161,544 tons of corn have been sold to unknown
destinations for delivery in 2021/22, and 198,000 tons of soybeans
sold to unknown destinations during 2021/22. It's the first
confirmation of sales to China in recent days, and may indicate the
future direction of soybean prices. "The key to the next move in
beans is trying to figure out what the Chinese are doing, and why
they are doing it," said Charlie Sernatinger of ED&F Man
Nail Into the Coffin: The content of Tuesday's WASDE report
appears to have dulled positive trader sentiment for grains, said
Dan Hueber of the Hueber Report. "While the USDA adjustments in
wheat and, to a lesser extent, corn were relatively insignificant
yesterday, the October report would appear to have driven the last
nail into the 2020/21 bull market coffin for the grain and soy
trade," said Mr. Hueber. "Keep in mind, this market has gained 172%
over the past 62-weeks and pushed into a record high."
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Thursday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Friday.
--The CFTC will release its weekly commitment of traders report
at 3:30 p.m. ET Friday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
October 13, 2021 15:25 ET (19:25 GMT)
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