Wheat Gets Boost as World Supplies Threatened by Weather
23 October 2019 - 9:39PM
Dow Jones News
By Kirk Maltais
--Wheat for December delivery rose 0.5% to $5.20 3/4 a bushel on
the Chicago Board of Trade Wednesday, as weather issues and
political developments in South America made U.S. wheat appear more
competitive on the world stage.
--Soybeans for November delivery fell 0.1% to $9.33 3/4 a
bushel.
--Corn for December delivery lost 0.1% to $3.87 3/4 a
bushel.
HIGHLIGHTS
Weather Assist: A drought in Ukraine is likely to affect
winter-wheat planting there, and South American crops are also dry.
In addition, Algeria, Jordan, Taiwan, Tunisia, Turkey and other
nations have sought or are seeking to purchase wheat this week.
Some traders are betting that the possible tightening of supplies
overseas combined with apparent demand for wheat may lead to
foreign buying of U.S. grain.
Political Grist: The Brazilian real strengthened after Congress
passed pension reform there, making U.S. grains slightly more
attractive for buyers like China. In Argentina, traders are
watching the presidential election with interest, amid speculation
the left-wing candidate could raise export duties on agriculture if
he wins. "Polls continue to suggest...Alberto Fernandez will take
power, and a boost in export duties is a real possibility,"
AgResource said.
INSIGHT
Ethanol Not Encouraging: Daily ethanol production rose by 25,000
barrels a day to 996,000 barrels last week, according to EIA data.
The USDA has lowered its target for corn use for the biofuel, but
even the reduced goal may be out of reach. "The USDA is still
looking for a minor year-over-year increase in corn use for ethanol
in 2019/20, but demand will have to ramp up sharply in the coming
months to indicate any hitting of that target," said Arlan Suderman
of INTL FCStone.
AHEAD
--The USDA will release its latest weekly export sales numbers
at 8:30 a.m. EDT Thursday.
--The USDA will release its monthly Cattle on Feed report at 3
p.m. EDT Friday.
--The CFTC will release its weekly commitment of traders data at
3:30 p.m. EDT Friday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
October 23, 2019 16:24 ET (20:24 GMT)
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