TOP STORIES:
Soybeans Drop as Profit Taking Extends
Soybeans for March delivery fell 2.2% to $13.85 3/4 a bushel, on the Chicago Board of Trade Tuesday, with managed money funds extending their selling of grains futures for a second straight session.
Corn for March delivery fell 1% to $5.26 a bushel.
Wheat for March delivery fell 0.5% to $6.72 1/4 a bushel.
STORIES OF INTEREST:
La Nina Seen as Potentially Weakening in Late Winter -- Market Talk
12:33 ET - The La Nina climate condition seen throughout this winter is expected to continue into the spring - but how strong it is could have notable effects on winter wheat crops and planting conditions for spring row crops. In a virtual forum Tuesday, meteorologists with DTN forecast that the current La Nina climate has so far kept winter warm in most areas of the country, reducing national heating demand and limiting snowfall. However, if La Nina weakens in the coming months, then winter wheat crops could be exposed to a round of heavier snowfall - and temperatures on the colder side heading into the spring planting season. Grain futures are trading lower on the CBOT Tuesday. (kirk.maltais@wsj.com; @kirkmaltais)
Soybean Export Inspections Better-Than-Expected For The Week -- Market Talk
11:22 ET - Export inspections of US soybeans are strong, with new inspections destined for China showing up in this week's report en masse. Soybean export inspections totaled 2.06M metric tons--with 1.28M tons destined for China, according to USDA data. Total inspections exceeded the expectations of analysts, according to Futures International--and suggest that even with prices at high levels, demand rationing from export customers has yet to be seen. Soybean futures on the CBOT are down Tuesday by 1.8%, but are still trading near $14 per bushel--the highest level since July 2014. (kirk.maltais@wsj.com; @kirkmaltais)
Large Grain Flash Sales Continue Despite Rationing Sentiment -- Market Talk
09:39 ET - US grain prices are rising since the release of the USDA's WASDE last week, amid expectations that higher prices are needed to "ration" demand. Even so, the USDA confirms new large sales Tuesday. 132,000 metric tons of soybeans bought by China for delivery in the 2021/22 marketing year, 128,000 tons of corn sold to Japan for delivery in 2020/21, and Israel purchased 100,000 tons of corn for 2020/21. High prices don't seem to be stifling export demand. "Corn continues to be supported by firm global prices with the US competitively priced," says Doug Bergman of RCM Alternatives. "With that said, the funds are extremely long, so any sign that export bids are cooling could lead to a large pull-back." (kirk.maltais@wsj.com, @kirkmaltais)
International Wheat Prices Trend Higher -- Market Talk
08:41 ET - Prices for wheat across the world continued to rise yesterday while US trading was closed in observance of Martin Luther King Jr. Day -- which is being reflected by CBOT wheat prices trading up 1.3% premarket. "Supported by cold weather in Russia, where the young crops had a difficult start and are therefore in quite sensitive condition, prices were further driven up by the Russian export tax," Commerzbank says. "The prospect of lower Russian exports at a time when less EU wheat is also available than last year is cause for concern for traditional importers such as Egypt and Algeria." Wheat futures are currently trading at their highest level since May 2014. (kirk.maltais@wsj.com; @kirkmaltais)
THE MARKETS:
Lower Feedlot Placement Lifts Cattle Futures -- Market Talk
15:02 ET - Most-active live cattle futures trading on the CME closed 1% higher at $1.1935 per pound. That makes it three straight sessions that cattle futures have risen, with strength in grains futures limiting the amount of cattle that is making their way to feedlots for slaughter. "Rising feed costs, lower feedlot placements during the last three months, and a waning pandemic next summer have bolstered deferred fed cattle futures," says Steiner Consulting. Meanwhile, lean hog futures finished 2.1% lower to 66.475 cents per pound. (kirk.maltais@wsj.com; @kirkmaltais)
(END) Dow Jones Newswires
01-19-21 1725ET
