Soybeans Rise as Snow Targets the Dakotas
October 09 2019 - 4:27PM
Dow Jones News
By Kirk Maltais
--Soybeans for November delivery rose 0.4% to $9.23 3/4 a bushel
on the Chicago Board of Trade on Wednesday, as traders expect crop
losses once a snowstorm hits the immature plants in the Northern
Plains.
--Wheat for December delivery was unchanged at $5.00 1/4 a
bushel.
--Corn for December delivery fell 0.4% to $3.94 1/4 a
bushel.
HIGHLIGHTS
Deep Freeze: Although forecasts have moderated the amount of
snow expected to drop on the Dakotas this week, big crop losses are
still expected due to the cold weather. The snowstorm is likely to
have the strongest effect on the soybean crop, said Tomm
Pfitzenmaier of Summit Commodity Brokerage. Only 8% of North Dakota
soybeans and 5% of South Dakota soybeans have been harvested this
year, well behind the five-year averages of 48% and 36%,
respectively, according to USDA data.
Sprouting Optimism: A Financial Times report that China has
offered to buy more U.S. agricultural products in an effort to ease
trade talks had some traders feeling bullish. The talks resume
Thursday, but few believe the two nations will agree to a
comprehensive trade accord this week.
INSIGHT
Bring on the Biofuel: Inventories of ethanol barrels fell by a
record 1.995 million barrels last week, according to data from the
EIA. Ethanol inventories totaled 21.22 million barrels, a level
last seen in September 2017. The drop preceded the Trump
administration's plan to boost biofuel demand, which was announced
Friday.
Eyes on D.C.: The resumption of high-level trade talks between
the U.S. and China, as well as the USDA's WASDE report at noon,
makes Thursday a potentially big day for grain market moves.
Analysts surveyed by The Wall Street Journal expect the USDA to cut
its forecasts for U.S. corn and soybeans.
AHEAD
--The USDA will release its latest weekly export sales numbers
at 8:30 a.m. EDT Thursday.
--The USDA will release its World Agricultural Supply and Demand
Estimate report at noon Thursday.
--The CFTC will release its weekly commitment of traders data at
3:30 p.m. EDT Friday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
October 09, 2019 16:12 ET (20:12 GMT)
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