Corn Higher as U.S. Crop Condition Declines -- Daily Grain Highlights
By Kirk Maltais
--Corn for December delivery rose 1.1% to $5.85 a bushel on the
Chicago Board of Trade Wednesday, supported by the USDA reporting
yesterday that the U.S. crop condition has declined in quality from
the previous week.
--Soybeans for November delivery rose 0.5% to $13.22 3/4 a
--Wheat for September delivery fell 0.3% to $8.04 1/2 a
Withering in the Sun: The USDA reported in its Crop Progress
report yesterday that corn in good or excellent condition has
slipped 3 points from last week, to 64% good-or-excellent
condition. Soybeans fell 2 points to 63% good-or-excellent.
Indications of hot weather impacting the crops helped grains
withstand further fund selling seen today. "Grains have found a
little bit of support overnight as conditions ratings were lower
than expected," said Richard Buttenshaw of Marex in a note.
Pressure Source: Pressure from outside markets was a stronger
source for movement than U.S crop conditions for much of the day.
"Seems like the U.S. Dollar Index continues to make new highs and
that is pressuring things fairly well," Donna Hughes of StoneX told
The Wall Street Journal. "I would expect that there is more fund
exits as well as speculative selling." The USD Index trading on the
ICE closed up 0.5% today.
Removed Premium: After finding record highs this year on
supply-chain disruptions stemming from the Russia-Ukraine conflict,
continuous corn and soybean futures trading on the CBOT are now
down slightly year-to-date. Wheat is still higher from where it
started the year at, but is only roughly 35 cents per bushel
higher. "The washout in cotton, energies, metals, etc, are adding
to the 'get me out now' mentality," Dan Hueber of the Hueber Report
told the WSJ. "Flushes like this always extend further than would
seem reasonable, and we have probably now entered that stage."
Historically High: Even with the volatility seen in grain
futures today, prices are expected to remain on the high side of
historical averages, said Capital Economics in a note. "Global
monetary tightening, concerns about global economic growth and a
stronger U.S. dollar weighed heavily on agricultural commodities in
June," said the firm. However, potential supply deficits
exacerbated by lingering fighting in Ukraine looks to provide
support for prices, the firm adds.
--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
July 06, 2022 15:01 ET (19:01 GMT)
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