Wheat Higher as Inflation Lifts Grains -- Daily Grain Highlights
By Kirk Maltais
--Wheat for December delivery rose 1.8% to $7.49 1/4 a bushel,
on the Chicago Board of Trade Wednesday, rising as traders
increased their investments in commodities in a wave of
--Corn for December delivery rose 1.7% to $5.39 1/4 a
--Soybeans for November delivery rose 1.4% to $12.45 1/2 a
Inflation Trade: As with most commodities recently, inflation
jitters are working their way into grain futures. Arlan Suderman of
StoneX says grain and oilseed prices are finding additional buying
support "as the inflation trade on Wall Street supports efforts of
the corn and soybean market to carve out harvest lows." And the
inflation trade is being closely watched by the Federal Reserve.
Fed governor Christopher Waller says the central bank could move
forward the timeline for raising short-term interest rates to
restore price stability if high levels of inflation don't start
All Locked Up: Also lifting grains Wednesday are expectations of
export sales strength, as well as the reluctance of U.S. farmers to
sell off their freshly harvested crops. "Once the crop is locked
away in the bin, it will be hard for end users to pry it out again
until at least early 2022," said Tomm Pfitzenmaier of Summit
Commodity Brokerage. "The U.S. is the world's cheapest supplier of
feedgrains for delivery beyond October and so we continue to be
somewhat optimistic that this will lead to export demand that is at
least as good as the USDA is indicating."
Pandemic High: U.S. ethanol production is jumping again this
week, bringing the daily production rate to its highest level since
before the coronavirus pandemic. The EIA said U.S. daily ethanol
production through October 15 hit a rate of 1.1 million barrels per
day, up from 1.03 million barrels per day reported last week. This
is more than anticipated by analysts surveyed by Dow Jones, who
estimated production to be anywhere from 970,000 barrels per day to
1.06 million barrels per day. It's the biggest daily ethanol
production since June 2019. Meanwhile, U.S. ethanol inventories
also grew, with inventories through October 15 reported at 20.08
million barrels - the highest in three weeks.
Jumping Beans: Export sales of U.S. soybeans are expected to
jump in tomorrow's report from the USDA, according to grains
traders surveyed by The Wall Street Journal. They see soybean sales
totaling anywhere from 1.2 million metric tons to 2.5 million tons
for the week ended October 14, up from 1.15 million tons for the
previous week. The USDA last reported flash sales of U.S. grains on
October 15, but grain traders in general have been anticipating
stronger demand for U.S. exports as futures prices relaxed in the
first half of October.
--The USDA will release its weekly export sales report at 8:30
a.m ET Thursday.
--The USDA will release its monthly livestock slaughter report
at 3 p.m. ET Thursday.
--The USDA will release its monthly Cattle on Feed report at 3
p.m. ET Friday.
--The USDA will release its monthly cold storage report at 3
p.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 firstname.lastname@example.org
(END) Dow Jones Newswires
October 20, 2021 15:48 ET (19:48 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.