Soybean Futures Rise as Market Digests Coronavirus Worries
February 27 2020 - 04:18PM
Dow Jones News
By Kirk Maltais
--Soybeans for May delivery eked out a 0.3% gain to $8.95 a
bushel on the Chicago Board of Trade on Thursday, helped by moves
in Argentina to curb exports.
--Wheat for May delivery fell 1.5% to $5.27 1/2 a bushel.
--Corn for May delivery fell 1.7% to $3.68 a bushel.
HIGHLIGHTS
Regaining Composure: While most markets slid on worries about
the coronavirus epidemic, soybeans were supported by speculation
about reduced shipments from Argentina if the government raises
export taxes as expected. In addition, China, a major soybean
buyer, is seeing some improvement on the virus front. "China at
least is showing a drop in new cases and deaths, with experts there
believing the virus can be controlled by the end of April," said
Arlan Suderman of INTL FCStone. April is when China is expected to
begin buying U.S. agricultural goods in earnest as part of the
phase one trade deal.
Demand Slammed: Wheat and soybean export sales fell short of
projections of traders polled by The Wall Street Journal, with
wheat sales totaling 381,800 metric tons and soybeans totaling
339,300 tons, according to the USDA's latest report. Soybeans
missed the low end of trader targets by more than 200,000 tons, and
new Chinese purchases totaled only 71,700 tons.
INSIGHT
Fuel Threat: Sliding oil prices -- with U.S. crude trading at
its lowest level in more than a year on concerns about the spread
of coronavirus -- is likely to become a drag on ethanol demand in
the U.S., RJO Futures said. Gasoline futures are also at their
lowest since January 2019, making ethanol less attractive. Traders
will be watching the EIA's weekly data for any sign of a pullback
in ethanol production.
AHEAD
--The CFTC releases its weekly commitment of traders report at
3:30 p.m. ET Friday.
--The USDA releases its weekly grain export inspections data at
11 a.m. ET Monday.
--The USDA releases its monthly grain crushings report and
annual summary at 3 p.m. ET on Monday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
February 27, 2020 16:03 ET (21:03 GMT)
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