Wheat Edges Higher as U.S. Grain Finds New Interest
Wheat contracts for March delivery rose 0.2% to $5.18 1/4 a bushel on the Chicago Board of Trade on Monday amid signs that foreign buyers are interested in U.S. grain. Soybean contracts for March delivery fell 1% to $9.05 a bushel.
Africa Turns to US Wheat As Russia Exports Fall -- Market Talk
10:44 ET - The USDA reported a sale of 128,000 metric tons of hard red winter wheat for delivery to Nigeria in the 2018/19 marketing year, with another 120,000 tons of soft red winter wheat sold to Egypt for the same timeframe. News of the sale follows projections that Russian wheat exports are decreasing, with the country opting to use its wheat internally instead of export it. As a result, markets normally reliant on Black Sea wheat are considering the US as a potential alternative source. March wheat futures on the CBOT are currently down 0.6%. (firstname.lastname@example.org;@kirkmaltais)
Brazilian Soybean Data Grows in Importance -- Market Talk
08:59 ET - Data reflecting Brazilian soybean growth for the 2018/19 marketing year, as well as planting decisions for 2019/20, is quickly becoming the next key dataset monitored by the US market. On Friday, Brazilian farmers halted sales of soybeans as port premiums rose sharply due to strengthening of the Brazilian real, according to a Reuters report. Tuesday, Brazilian agriculture agency Conab will report its 2019 Brazilian soybean production forecast, with expectations that soybean production there will be down due to dry weather. If Brazilian soybeans become more difficult for Chinese buyers to obtain, then this could make US buying more attractive, analysts say. However, for US growers, this boon is predicated on whether the US and China reach a trade deal. (email@example.com; @kirkmaltais)
STORIES OF INTEREST:
Corn Grain Inspections Miss Analyst Mark -- Market Talk
11:33 ET - The latest USDA grain export inspection figures places corn inspections at 743,536 metric tons, missing analyst estimates. Japan was the top destination for US corn, with 270,905 tons inspected. Meanwhile, the data shows China was a big receiver of US soybeans, with nearly 500,000 tons inspected for shipment to China. Both soybeans and wheat shipments fell within the range of expectations from traders. (firstname.lastname@example.org, @kirkmaltais)
Soy Story: The most recent WASDE suggests soybean prices may be too high, according to some traders. U.S. soybean inventories are still near record highs, and without China buying it's unlikely the U.S. can sell enough beans to change deplete those stocks, the traders said. "It is very difficult to see soybeans trading $9.10 in March and $9.50 in November if the carryout is (910 million bushels)," said Craig Turner of Daniel's Trading. "Based on those numbers by themselves soybeans should be 50 cents lower." Traders will be watching Brazilian data to see if production there might shrink, which could make U.S. soybeans more attractive to China.
Hogs Turn Around as China Statements Fuel Correction -- Market Talk
15:08 ET - Reports the Trump Administration is discussing among itself holding a summit at the president's Mar-a-Lago club in Palm Beach, Fla., with Chinese President Xi Jinping helps fuel a turnaround on hog futures. April hog futures on the CME finish up 1.1%, closing at 59.075 cents a pound. Also aiding the uptick was the notion among traders that last week's price slide was overdone. "We went a little too far last week," says Alan Brugler of Brugler Marketing and Management. Meanwhile, live cattle futures finished up 0.3% at $1.283 a pound, maintaining the steady rise of the futures contract on solid consumer demand. (email@example.com; @kirkmaltais)