Wheat Futures Wilt After Seven Sunny Sessions
March 26 2020 - 4:10PM
Dow Jones News
By Kirk Maltais
--Wheat for May delivery fell 1.9% to $5.69 a bushel on the
Chicago Board of Trade on Thursday, pulling back after seven
sessions of gains.
--Soybeans for May delivery fell 0.1% to $8.80 1/4 a bushel.
--Corn for May delivery rose 0.1% to $3.48 3/4 a bushel.
HIGHLIGHTS
Profit Taking: Wheat's upward momentum paused, after a strong
week that saw prices rally to where they were before the
coronavirus pandemic started weighing on markets in late February.
"Wheat eased off as the panic fund buying in the front end
yesterday failed to materialize again today," said Charlie
Sernatinger of ED&F Man Capital.
Global Grain Gobble: Net corn export sales hit a marketing-year
high of 1.8 million metric tons in the week ended March 19, with
China purchasing about 42%. China was also the leading buyer of
U.S. wheat and soybean exports, according to the USDA, with new
wheat export sales totaling 740,000 tons and soybean sales totaling
904,300 tons.
INSIGHT
Watching and Waiting: Traders are looking ahead to the USDA's
seeding report next week. "A bullish March 31st market response
will be quickly sold by US farmers/traders amid the ethanol margin
implosion," AgResource said. "If the report is neutral or bearish,
CBOT corn values will quickly decline to new lows."
Cargill Recalculates: Agricultural giant Cargill will skip its
third-quarter earnings release, scheduled for March 31, due to the
Covid-19 pandemic. Privately held Cargill doesn't have the
reporting obligations of a public company but for years has
released quarterly profit and revenue figures along with a snapshot
of its business performance. It's another coronavirus casualty in
the agricultural market.
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.
(Jacob Bunge contributed to this article.)
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
March 26, 2020 15:55 ET (19:55 GMT)
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