Soybeans Climb on Strength in Vegetable Oil -- Daily Grain Highlights
By Kirk Maltais
--Soybeans for July delivery rose 2% to $16.46 1/2 a bushel on
the Chicago Board of Trade Friday, with soybeans catching a lift
from higher prices for soybean oil.
--Wheat for July delivery fell 0.1% to $11.77 1/2 a bushel.
--Corn for July delivery fell 1.3% to $7.81 1/4 a bushel.
Veg Oil Viability: Developments in Indonesia continue to have
repercussions in the soy market, with soyoil considered a viable
alternative as an edible oil. Usage as biofuel continues to be the
main driver in vegetable oil price strength, which is why the
edible oils have been taking many of their cues from crude oil. In
trading Friday, crude oil prices rose 4.1%--which in turn pushed
CBOT soyoil futures up 1.5%. "Soybean oil remains well supported as
demand is holding strong amid very tight supplies of vegetable oils
here and around the world," said Jack Scoville of Price Futures
Group in a note. Indonesia instituted its ban on palm oil exports
late last month, in an effort to bolster food security.
Collecting Profit: Wheat futures fell Friday, this after surging
Thursday following the USDA's release of the WASDE report. It
showed that winter wheat production is expected to be lower in the
U.S., while import/export flow is expected to hit a record high
globally this year. Traders are generally locking in profits from
Thursday, said Arlan Suderman of StoneX in a note. "Wheat prices
pulled back in some pre-weekend profit taking after surging the
daily limit higher following yesterday's USDA crop report, which
allowed corn prices to do the same."
Reconsidering Things: Following Thursday's WASDE report, traders
are mulling what grain prices should be. "Corn had a mixed report
yesterday with the USDA already lowering yield by 4 bushels per
acre, but lower demand estimates lessened the impact of the reduced
supply," said Doug Bergman of RCM Alternatives in a note. "U.S.
ending stocks are forecast to be tight, but probably not tight
enough to justify current prices." Results for soybeans and wheat
were more supportive, although trader focus is firmly on weather
over the next few weeks in growing areas.
Picking Up Slack: Roughly 27 million tons of grain are still
stuck in Ukraine, according to USDA Secretary Tom Vilsack, who was
briefed by Ukraine's agricultural minister during a meeting of G7
agriculture officials in Germany. Mr. Vilsack says the U.S. is
focused on helping to make up for the resulting shortfall, citing a
move by the Biden administration to incentivize farmers to boost
crop production by planting an acre twice in the same year.
Additionally, the USDA is easing restrictions on land coming out of
a federal conservation program to increase the potential for
double-cropping, Mr. Vilsack said.
--The USDA will release its weekly grains export inspections
report at 11 a.m. ET Monday.
--The USDA will release its weekly crop progress report at 4
p.m. ET Monday.
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
Jesse Newman contributed to this article.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires
May 13, 2022 15:29 ET (19:29 GMT)
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