Soybeans Climb on Energy Price Strength - Daily Grain Highlights
By Kirk Maltais
--Soybeans for November delivery rose 1.4% to $12.37 1/4 a
bushel on the Chicago Board of Trade Monday as soybeans were lifted
by higher vegetable oil prices, which in turn were supported by
higher natural gas prices.
--Wheat for December delivery rose 0.5% to $7.59 1/2 a
--Corn for December delivery was unchanged at $5.38 a
Energetic: Soybean futures led the CBOT grains complex higher.
For soybeans, the strength in futures comes from soyoil, which is
riding momentum from fuel prices. "The edible oils markets continue
to push higher along with energy prices due to the recently
discovered value of the oils for manufacturing the new generation
of renewable fuels, which includes both renewable diesel and
aviation fuel," said Arlan Suderman of StoneX. Soyoil futures
closed up 1.7% in trading Monday at over 63 cents per pound.
Natural gas prices surged today, rising 12% for the largest one-day
percentage gain since Tuesday, September 29, 2020.
Waterlogged: Harvesting of U.S. row crops hit some delays over
the weekend, which helped support grain futures on Monday. Terry
Reilly of Futures International also points to "higher lead in
outside markets, and tight global wheat stocks." Scattered rainfall
occurred throughout the Midwest over the weekend, and is expected
to continue into this week, according to DTN. "The Eastern Corn
Belt will remain very wet this week... there will be a small window
of dry weather, but it will take a few days for fields to dry
down," said Mr. Reilly.
Demand Drive: Demand is an overarching theme for grains,
particularly wheat. Weather may limit the amount of winter wheat
planted globally. "Ideas [are] that the U.S. will have good demand
for wheat as the rest of the northern hemisphere is short
production this year," said Jack Scoville of Price Futures Group.
Weather in Europe and Russia is being closely watched by grain
traders, who say that difficulties planting winter wheat amid wet
conditions in those areas are prompting some major buyers to look
toward different sources to lock in their export needs.
Inspections Slump: U.S. grain export inspections slipped from a
strong showing the previous week, according to USDA data. The
government said that for the week ended October 21 corn export
inspections totaled 545,127 metric tons, while those for soybeans
totaled 2.1 million tons and wheat totaled 140,413 tons. All three
of the totals are down from the previous week, with corn posting
the biggest slide, being roughly half of last week's showing. China
continues to be the leading destination for U.S. soybeans, with the
USDA reporting that 1.54 million tons of soybeans were inspected
for shipment there. Mexico was the leading destination for U.S.
corn, and Taiwan was the leading destination for U.S. wheat.
--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 USDA will release its monthly agricultural prices 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 Kirk Maltais at email@example.com
(END) Dow Jones Newswires
October 25, 2021 15:52 ET (19:52 GMT)
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