By Paulo Trevisani
-- Soybeans for January delivery fell 1.9% to $13.30 3/4 a bushel on the Chicago Board of Trade on Friday, amid news of dismal export sales.
-- Wheat for March delivery fell 1.2% to $5.77 1/4 a bushel.
-- Corn for December delivery fell 1.2% to $4.63 1/4 a bushel.
HIGHLIGHTS
Falling Exports: The USDA said Friday 129,000 metric tons of soybeans were reported as export sales to China for delivery in the 2023-2024 marketing year, and 323,400 tons were sold to unknown destinations. The flash export notice followed a weekly USDA report showing a decline in U.S. grain exports, which was partially expected as the global economy slows down under the weight of high interest rates.
Argentina Pauses: Sales of the South American nation's new soybean crop could be on hold as producers wait for clarity on how a new administration will handle foreign exchange policy, Marex' Terry Reilly said in a report. Javier Milei was elected president promising to adopt the U.S. dollar as the nation's currency, but there is speculation that before that the administration could substantially devalue the peso. "Producers are holding out for a policy change," Reilly said. He added that Argentina's October soybean crush was 1.9 million metric tons, lower than 2.92 million tons for October 2022.
INSIGHT
War Threat: Wheat futures fell in the post-Thanksgiving shortened trade, as the USDA reported a 3% decline in last week's net export sales. Threats to world supply, however, could rise in the coming days. ADM's Steve Freed said in a report that there are concerns about a possible Russian attack on Ukraine's port in Odessa. "There remain uncertainty over potential Ukraine reaction on Russia ports," he said, adding there is "talk of a Ukraine bill to raise export taxes which could halt exports."
Brazil's Biofuel: Agricultural areas of the country have received some rain recently, but more is needed for the remainder of the growing season, AgResource said in a report. It said the forecast for Northern Brazil for the next 10 days calls for less rain than normal. AgResource added that Brazil approved a mandate to raise the domestic blending rate of biodiesel to 14% in 2024, from 12% now. "This is bullish to world vegoil prices on reduced Brazilian soyoil exports," the firm says.
AHEAD
--The USDA will release its weekly grains export inspections report at 11 a.m. ET Monday.
--The CFTC will release its delayed Commitment of Traders report at 3:30 p.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.
--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.
--The USDA will release its monthly Agricultural Prices report at 3 p.m. ET Thursday.
Write to Paulo Trevisani at paulo.trevisani@wsj.com
(END) Dow Jones Newswires
11-24-23 1520ET
