Wheat Rises on Tighter Supply Picture -- Daily Grain Highlights
By Kirk Maltais
--Wheat for December delivery rose 2% to $7.56 a bushel on the
Chicago Board of Trade Friday, amid an outlook for tighter supplies
world-wide and optimism for grains among fund traders.
--Corn for December delivery rose 1.1% to $5.38 a bushel.
--Soybeans for November delivery fell 0.3% to $12.20 1/2 a
Supply Crunch: Wheat futures led CBOT row crops higher Friday,
bouncing back from Thursday's selling. "Wheat continues to have a
relatively better price outlook on tightening global supplies of
exportable milling wheat," said Doug Bergman of RCM Alternatives.
Particularly driving the uptick is a rise in Russian export taxes,
traders say--with Russia being the leading seller of wheat into the
export market. Adverse weather conditions in Russia and Europe are
also pushing world prices higher.
Oil Slick: Soyoil futures trading on the CBOT were pulling
soybeans down Friday--with the soyoil contract finishing lower for
two straight sessions. This drop is putting weight on soybeans.
"Profit taking in the edible oils markets following recent sharp
gains led to modest weakness in soybeans," said Arlan Suderman of
StoneX. Soyoil is down despite the strength seen in crude oil
prices Friday, with WTI light sweet crude closing 1.4% higher to
over $83.60 per barrel.
Fund Frenzy: Fund traders appear to be piling into long
positions in agricultural futures, said AgResource. "CBOT open
interest has been rising, which is suggesting that fund managers
are placing bets on long grain and soy futures," the firm said,
adding that the key question for traders is if this rally will
continue throughout Friday's session. The CFTC will put out its
commitment of traders report this afternoon, providing some insight
into fund traders' recent moves.
Weather Risks: One of the selling points for plant-based meat
alternatives has been that the processes involved--extruding
protein from processed crops and combining ingredients to
approximate ground beef and chicken breasts--is more reliable than
traditional meat production, and insulated from some of the messy
complications involved with raising livestock by the millions.
Beyond Meat's cut to forecasted sales Friday shows that as faux
meat companies grow, they're bound to encounter some of their own
problems. The company attributes part of its
larger-than-anticipated decline in revenue to a Pennsylvania
facility losing potable water for two weeks, and water damage to
inventory due to severe weather in another location, both of which
contributed to unfilled orders.
--The USDA will release its weekly export inspections report at
11 a.m. ET Monday.
--The USDA will release its weekly crop progress report at 4
p.m. ET Monday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
Jacob Bunge contributed to this article.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
October 22, 2021 15:24 ET (19:24 GMT)
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