Corn Turns Higher on Drier Argentina Forecast -- Daily Grain Highlights
By Kirk Maltais
--Corn for March delivery rose 1.5% to $5.96 1/4 a bushel on the
Chicago Board of Trade Friday, in reaction to a drier shift in the
weather forecast for Argentina which is expected to adversely
affect parched crops there.
--Soybeans for March delivery fell 0.5% to $13.69 3/4 a
--Wheat for March delivery fell 0.7% to $7.41 1/2 a bushel.
Parched Pampas: The drier turn in the weather forecast for
Argentina was a key source of support for corn futures Friday. "The
details of Argentine forecasts are beginning to lean bullish as
principal crop areas will stay arid for another seven-to-eight
days," AgResource said. Climate guidance is trending warmer and
drier in Argentina and Paraguay, the firm added, which may have an
adverse effect on the corn crop there.
Weighed-Down Wheat: Wheat futures on the CBOT have been on the
decline since the USDA released the WASDE on Wednesday. "The
bigger-than-expected winter acres by the USDA has the market
putting together fairly loose new crop balances," said Richard
Buttenshaw of Marex Spectron. "This at a time when the U.S. is
still not competitive on an export front is leaving wheat with very
few friends." It's the third consecutive lower finish for wheat
Shift in Strategy: Soybean futures fell Friday, with the drop
coming as Chinese officials indicated plans to set aside more
acreage for growing their own soybeans--all this while Beijing
still hasn't met the targets for purchasing U.S. soybean exports
set in 2020's Phase One trade deal. "As we all know plans can go
awry, but the Chinese government has also promised to encourage
additional bean acreage this coming year in an effort to reduce the
dependency on imports," said Dan Hueber of the Hueber Report. How
this plays out is likely to affect soybean movement in the coming
Input Strain: The income of U.S. farmers is expected to drop in
2022, according to the Federal Reserve Board. "Expectations are for
income to be lower in 2022 than in 2021, as recent growth in input
prices outpaced growth in agricultural goods prices and farmers
expected the trend to continue," said the Federal Reserve in a
report published this week. Higher costs for inputs like fertilizer
as well as fuel and transportation are pressuring farmers' budgets
globally, even as grain futures remain at high levels not seen in
--The Chicago Board of Trade will be closed Monday in observance
of Dr. Martin Luther King Jr. Day.
--The USDA will release its weekly grains export inspections
report at 11 a.m. ET Tuesday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Thursday.
--The USDA will release its monthly livestock slaughter report
at 3 p.m. ET Thursday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
January 14, 2022 15:38 ET (20:38 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.