By Kirk Maltais
--Soybeans for January delivery rose 1.3% to $11.84 1/4 a bushel, on the Chicago Board of Trade on Tuesday in response to data released by a trade group showing a record level of beans crushed in November.
--Wheat for March delivery rose 0.5% to $5.99 3/4 a bushel.
--Corn for March delivery rose 0.2% to $4.24 3/4 a bushel.
HIGHLIGHTS
#1 Crush: The amount of soybeans crushed to make products like soyoil and soymeal remained high through November, according to the latest crush report from the National Oilseed Processors Association. NOPA says just over 181 million bushels of soybeans were crushed in November, which is a record-high for the month and the third-largest amount ever reported by the group. The numbers suggest that higher futures prices, like the uptick seen Tuesday, are on the way, according to AgResource. "[We see] the NOPA November Crush Report as reconfirming that the U.S. is utilizing the 2020 soybean crop too quickly," said the firm. "Demand rationing via price will be required in early 2021."
Ricochet: Wheat futures found their way back higher, even though they pared much of their gains late in the trading session, after closing roughly 3% lower Monday. "Ideas that the increase in export taxes from Russia has already been 'priced' helped to pressure the market," RJO Futures said of Monday's drop. However, traders are skeptical that wheat futures have much upside left, even with the introduction of a Russian tariff. According to RJO Futures, wheat has a support level of $5.87 to $5.93 per bushel, with resistance at roughly $6.02 per bushel.
Droopy Dollar: U.S. dollar weakness provided support for CBOT grains futures. The USD Index trading on the Intercontinental Exchange fell 0.2%, making it 1.5% that the index has shed since Dec. 1. A weaker dollar is good news for U.S. grains, with farmers hoping to take advantage of heightened interest on the world export market.
INSIGHT
Can't Sit Still: Managed money funds -- which hold a net long position of nearly 248,000 contract as of Dec. 8, according to the CFTC -- may soon opt to lock in profits on corn futures instead of continuing to hold large positions, said Doug Bergman of RCM Alternatives. "Corn continues to see a choppy trade with buyers and sellers both failing to see any major follow-through to the upside and downside," Mr. Bergman said. "If there is a bearish concern, it is the large fund long that could be losing patience with the market testing trendline support."
Eyeing the Overseas Market: The U.S. ethanol market is eyeing opportunities to grow in the export market, with other regions of the world possibly seeing U.S. biofuel as a way to reduce air pollution. Southeast Asia is a big growth market for U.S. ethanol, said Kevin Ross of the National Corn Growers Association. Europe is also a potential market for U.S. ethanol, although that will require further trade negotiations, Mr. Ross said. U.S. ethanol production took a hit following the onset of coronavirus, with plants pausing or closing as drivers stayed off of the roads during lockdowns.
AHEAD
--The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. ET Wednesday.
--The USDA will release its latest weekly export sales numbers at 8:30 a.m. ET Thursday.
--Sanderson Farms Inc. will release its fourth-quarter earnings before the stock market opens Thursday.
--General Mills Inc. will release its fiscal second-quarter earnings before the stock markets opens Thursday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
12-15-20 1536ET
