Wheat Falls Amid Pre-Holiday Profit Taking -- Daily Grain Highlights
By Paulo Trevisani
--Wheat for March delivery fell 2% to $8.50 1/4 a bushel on the
Chicago Board of Trade Wednesday as weather forecasts turned
bearish and investors realized profits ahead of the holiday.
--Soybeans for January delivery fell 0.5% to $12.66 1/2 a
--Corn for December delivery fell 0.1% to $5.79 3/4 a
Rising Tide: The EIA said Wednesday U.S. ethanol inventories
rose in the week ended Friday, in line with expectations. Ethanol
inventories were reported at 20.2 million barrels, up from 20.08
million barrels in the previous week. Daily production rose by
19,000 barrels per day to 1.08 million barrels per day.
Damp Down Under: Higher than usual rainfall in Australia was
seen as a threat to global supplies, while Brazil and Argentina are
likely to have more favorable weather for crops. U.S. weather "will
continue quiet with net drying in hard red winter wheat areas, the
northwestern Plains, California, the southwestern desert areas and
West Texas cotton country. Showers will occur in the Delta,
southeastern states and lower and eastern portions of the Midwest,
but only infrequently and lightly," Futures International said.
U.S. markets will be closed Thursday for Thanksgiving.
Covid Concerns: The USDA reported export sales of 330,000 tons
of soybeans to unknown destinations, 100,000 tons of corn for
delivery to Mexico and 30,000 tons of soybeans sold to India, all
to be delivered during the 2021/22 marketing year. The news came as
markets weighed bullish weather conditions against concerns of
slowing global demand because of a new wave of Covid-19.
Rally In The Cards?: Grain futures fell ahead of Thanksgiving, a
day typically marked by low volumes that can lead to wide price
moves, but weather conditions are expected to drive prices going
forward. The Hueber Report said: "With harvest behind us, the focus
will undoubtedly shift to demand, or lack thereof, and South
American weather, which should keep bears from feeling
overconfident for the time being." The report expects corn to trend
higher "through the balance of the year," with prices possibly
reaching $6 a bushel. "With indicators positive, that would
certainly not come as a surprise."
Overbought: Wheat futures fell, but AgResource said the March
contract "can lose another 15-20 cents and still maintain a
longer-term bullish trend," adding that "The volume of trade has
been surprisingly robust for a pre-holiday session," amid profit
taking as grain markets "are heavily overbought." AgResource said
that markets have already absorbed excessive rainfall in Australia,
while soil moisture in Argentina is expected to improve. "South
American weather into early Dec is favorable."
--The Chicago Board of Trade will be closed Thursday in
observance of Thanksgiving, with the exchange reopening Friday
Write to Paulo Trevisani at firstname.lastname@example.org
(END) Dow Jones Newswires
November 24, 2021 15:40 ET (20:40 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.