Wheat Leads Fall in Grains Complex -- Daily Grain Highlights
By Paulo Trevisani
--Wheat for December delivery fell 2.2% to $5.91 1/4 a bushel on
the Chicago Board of Trade on Monday, offsetting Friday gains as
traders turned more pessimistic about future demand while supplies
keep flowing through the Black Sea.
--Soybeans for November delivery fell 1.8% to $13.16 3/4 a
--Corn for December delivery fell 1% to $4.71 1/2 a bushel.
Black Sea Tension: Wheat gave back some of Friday's gains.
AgResource analysts said in a note that Black Sea grain flows were
weakening wheat prices, while in the U.S. "harvest efforts remain
unobstructed by weather." AgResource also mentioned reports of
"elevated Ukrainian corn loadings," last week. "Ukrainian exports
are rising, not falling, but Russian drone/missile attacks
persist," AgResource says, adding a note of caution: "Black Sea
military tension remains elevated."
Harvest Pressure: Soybean futures extended their pre-market
losses despite a flash-export sale notice. The USDA reported sales
of 123,000 metric tons of soybeans for delivery to China during the
2023/2024 marketing year. On the other hand, Brazil's record
soybean exports also weighed on markets. RCM's Doug Bergman said in
a note that beans are selling "after a poor crush number on Friday
and heavier than expected deliveries" against the September
contract, which he said drove prices lower to finish the week. "The
US bean supply outlook is extremely tight, but anticipation of
harvest pressure is limiting buying interest in the near-term."
Weather Worries: Grains markets worried about the economy and
weather conditions. The U.S. Fed is expected to keep rates high
this week and beyond, in an effort to weaken demand to tame
inflation. Some pundits fear this could result in recession. Beyond
that, "low water levels on the Mississippi River and Panama Canal"
are risks to be watched, CoBank's Kenneth Zuckerberg said in a
note. He also listed hurricane activity and the risk of a
government shutdown as potential threats to agriculture markets.
"We are also closely watching oil prices...and continued Chinese
military activity near Taiwan's airspace," Zuckerberg said.
Planting Picks Up: Brazil's soybean planting season is going
faster than a year ago, AgRural analysts said in a note. They
reported that the area for the 2023/24 crop reached 0.2% of the
estimated total as of last Thursday, compared to 0.1% in the same
period a year earlier. A lack of rain and high temperatures are
delaying planting in Mato Grosso state. More to the south, Parana
state is leading the planting season. AgRural said Parana farmers
are encouraged by better soil moisture, although weather is feared
to be less favorable this week.
--General Mills will release its first-quarter earnings at 7
a.m. ET Wednesday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Thursday.
--The US Drought Monitor will release its updated map at 8:30
a.m. ET Thursday.
--The USDA will release its monthly Livestock Slaughter report
at 3 p.m. ET Thursday.
--The USDA will release its monthly Cattle on Feed report at 3
p.m. ET Friday.
--The CFTC will release its weekly Commitment of Traders report
at 3:30 p.m. ET Friday.
Write to Paulo Trevisani at firstname.lastname@example.org
(END) Dow Jones Newswires
September 18, 2023 15:20 ET (19:20 GMT)
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