Wheat Futures Fall Amid Uncertain Weather -- Daily Grain Highlights
By Paulo Trevisani
-- Wheat for September delivery fell 0.9% to $7.75 3/4 a bushel
on the Chicago Board of Trade Friday as grains began to flow out of
Ukraine at a slow pace and U.S. weather remains a concern.
-- Soybeans for November delivery fell 0.6% to $14.08 3/4 a
-- Corn for December delivery rose 0.7% to $6.10 a bushel.
Recession Fears: The USDA reported soybean export sales of
132,000 metric tons to China, plus 132,000 tons to unknown
destinations, both for delivery during the 2022-23 marketing
Meanwhile, U.S. labor data came in much stronger than expected,
fueling fears the Fed could tighten too much and create a
demand-destroying recession. Geopolitical risks remained on
"There are still concerns about Chinese retaliation and the
weakness in the energy markets is bothersome," Tomm Pfitzenmaier,
from Summit Commodity Brokerage, said in a newsletter.
FX Effect: A resilient labor market weakened grain futures as
higher-than-expected employment boosted the U.S. dollar, Terry
Reilly, from Futures International, told WSJ.
July saw the addition of an astonishing 528,000 jobs in the
U.S., driving the unemployment rate even lower to 3.5%. That makes
higher interest rates more likely, supporting demand for the dollar
and pushing the DXY dollar index up nearly 1%.
"With the U.S. dollar screaming higher, that's keeping a lid on
any potential gains in the market," Mr. Reilly said.
Ship by Ship: Grains are trickling out of Ukrainian ports, "but
logistical challenges look to prevent any explosion in grain flows
there," AgResource said in a report.
The first convoy of ships carrying Ukrainian grain sailed from
Odessa Friday morning, in a sign that last month's agreement with
Russia is holding. The convoy was reported as carrying nearly
60,000 metric tons of corn.
The shipment follows a test run by a Sierra Leone-flagged ship,
which left Odessa on Monday with Lebanon as its final
"Thus far, it appears Ukrainian sea shipments will be rather
piecemeal," AgResource said.
Watching Clouds: Weather forecasts for the weekend are mixed,
leading to "mediocre volume" in CBOT futures trading, AgResource
said in a report as corn showed some strength while beans and wheat
"It's clear end users/importers are rewarding the break in corn
with new purchases, but it remains that a clear trend won't be
established until U.S. crop sizes are better known," AgResource
said, noting that NASS's yield estimates are due Friday.
The market "is beginning to pencil in severe yield loss across
much of the Plains and mid-South, which on the margin will weigh on
national output even assuming normal E Midwest conditions," the
-- Tyson Foods Inc. is scheduled to release its third-quarter
earnings report before the stock market opens Monday.
-- The USDA is due to release its weekly grains export
inspections report at 11 a.m. EDT Monday.
-- The USDA is scheduled to release its weekly crop progress
report at 4 p.m. EDT Monday.
-- Ingredion Inc. is due to release its second-quarter earnings
before the stock market opens Tuesday.
-- The EIA is scheduled to release its weekly ethanol production
and stocks report at 10:30 a.m. EDT Wednesday.
-- The USDA is due to release its weekly export sales report at
8:30 a.m. EDT Thursday.
-- The USDA is scheduled to release its monthly World Supply and
Demand report at noon EDT Friday.
-- The CFTC is due to release its weekly commitments of traders
report at 3:30 p.m. EDT Friday.
Write to Paulo Trevisani at firstname.lastname@example.org
(END) Dow Jones Newswires
August 05, 2022 15:53 ET (19:53 GMT)
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