Corn Slides on Prospects for More Rain - Daily Grain Highlights
By Kirk Maltais
--Corn for December delivery fell 3.1% to $6.53 a bushel on the
Chicago Board of Trade Monday in reaction to rainfall over the
weekend and more expected this week.
--Wheat for September delivery fell 2% to $9.17 1/2 a
--Soybeans for November delivery rose 0.6% to $14.32 3/4 a
Wash Out: Rainfall providing needed moisture amid hot
temperatures in areas of the Midwest put pressure on corn and wheat
futures. "Corn is showing the most weakness due to weekend rainfall
across Illinois that produced some needed soil moisture, with the
midday forecast offering additional showers early next week," said
AgResource in a note. "The risk-off mentality is related to the
prospect of improving Central U.S. weather." In the past two weeks,
the most-active corn contract shed nearly 10% and the wheat
contract dropped over 15%. Soybeans fell roughly 9% in the past two
Corn Question: Expectations that the USDA's acreage report will
show that farmers planted more corn than previously forecast put
pressure on the corn futures contract. "The question is not so much
that we see changes to acreage, but how much," said Karl Setzer of
AgriVisor in a note. "The U.S. cannot afford to lose production on
any crop this year given our current stocks to use models."
Long And Short Of It: The CFTC's latest Commitments of Traders
report, released Friday, showed that through the week ended June 21
managed money funds moved out of long positions in grains. However,
the move was less than expected, considering the selling seen in
the past week. "The trade was off on estimating the traditional net
long position for corn but keep in mind we saw some volatile days,"
said Terry Reilly of Futures International in a note. Long corn
contracts by managed money funds fell by over 16,800 contracts for
the week, according to the CFTC - while soybeans fell by over 5,300
contracts and soft red wheat dropped by over 3,200 contracts.
Feed The Fish: The appetite for U.S. soy exports is seen as
growing in Cambodia, where fish consumption is also growing -
necessitating the need for a reliable feed source. Soymeal made
from U.S. soybeans is seen as one way the sector can grow. "You
have a lot of farmers here using homemade feeds that don't include
soy," said Brad Doyle, president of the American Soybean
Association and a U.S. soybean farmer speaking in a press
conference. According to Mr. Doyle, Cambodia's fishing industry is
right now low efficiency - creating an opportunity for growth in
soy consumption in that industry. "The future is bright if they can
embrace the soybean," said Mr. Doyle.
Inching Up: Grain export inspections for the week are slightly
higher across the board versus the previous week, according to USDA
data. In its latest report, the USDA said corn export inspections
for the week ended June 23 totaled 1.25 million metric tons, versus
1.19 million tons at this time last week. Soybean inspections
totaled 468,309 tons versus 428,322 tons last week, and wheat
inspections tallied 352,404 tons versus 348,309 tons last week.
Japan was the leading destination for U.S. corn this week, while
Mexico was the leading destination for wheat and China was the
leading destination for soybeans.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
-The USDA will release its quarterly Hogs and Pigs report at 3
p.m. ET Wednesday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Thursday.
-The USDA will release its acreage report at noon ET
-The USDA will release its quarterly grain stocks report at noon
-The USDA will release its monthly agricultural prices report at
3 p.m. ET Thursday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
June 27, 2022 15:41 ET (19:41 GMT)
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