Corn Leads Grain Futures Higher -- Daily Grain Highlights
By Paulo Trevisani
--Corn for December delivery rose 1% to $6.63 1/4 a bushel on
the Chicago Board of Trade on Wednesday amid increasing ethanol
--Soybeans for January delivery edged 0.5% higher to $14.36 a
--Wheat for March gained 0.4% to $8.13 1.2 a bushel.
Preholiday Trading: Wheat and soybeans joined corn futures in a
move to the positive side near the end of pre-holiday trading, even
as markets face increasing supply from South America and the Black
Sea amid fears of a demand-destruction recession. "Ukraine
continues to export wheat/corn," AgResource said in a report. "Amid
a record crop, Russia will stay an aggressive seller," it warned.
The CBOT will be closed tomorrow for the Thanksgiving Day
Southern Competition: The USDA reported this week's first flash
export sales: 110K metric tons of soybeans for delivery to China in
the 2022/2023 marketing year. US soybeans face increasing
competition from South America. "The Brazilian soybean planting is
now 76% completed and given the good growing conditions there, we
expect importers to rapidly begin to switch their buying from the
US to Brazil," Summit's Tomm Pfitzenmaier said in a report.
Ethanol Lift: Corn futures rose after the US weekly ethanol
report, which showed production rising more than forecast, although
inventories also increased above expectations. The EIA said
production came in at 1.04 million barrels a day last week, up from
1.01 million the week before, while still lower than a year
earlier. Ending stocks were reported at 22.8M barrels, up from 21.3
million in the week of November 11. Analysts surveyed by WSJ had
forecast production between 1 million and 1.02 million barrels a
day and stocks between 21.1 million and 21.2 million barrels.
Potential Headwinds: Grain futures reversed early losses, but
producers face potential headwinds. "US and global supplies remain
tight, but US prices are high enough relative to the rest of the
world that the US is struggling with exports," RCM's Doug Bergman
said in a report. Soybeans face the prospect of a record crop in
Brazil. About corn, Bergman says that "US supplies are tight, but
we're already at levels where demand is slowing."
--The USDA and the Chicago Board of Trade will both be closed
Thursday in observance of Thanksgiving. Both will reopen
--The USDA will release its weekly export sales report at 8:30
a.m. ET Friday.
Write to Paulo Trevisani at email@example.com
(END) Dow Jones Newswires
November 23, 2022 15:17 ET (20:17 GMT)
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