By Kirk Maltais
--Soybeans for November delivery rose 0.8% to $4.05 1/4 a bushel on the Chicago Board of Trade Tuesday on speculation that dry weather in South America may lead to a decrease in the regions' soybean yields.
--Corn for December delivery rose 0.4% to $10.54 1/4 a bushel.
--Wheat for December delivery rose 0.3% to $6.27 a bushel.
HIGHLIGHTS
Delayed Reaction: Soybean futures on the CBOT were driven in large part by both South American planting delays as well as strong export sales in the U.S., said Tomm Pfitzenmaier of Summit Commodity Brokerage. "But as long as there are weather concerns in South America and as long as China continues to buy U.S. beans, the bulls will continue to control the soybean market," said Mr. Pfitzenmaier. Dry conditions in countries like Argentina and Brazil could lessen expected yields for soybean crops there.
Sudan's Wheat Needs: U.S. wheat futures rose Tuesday in reaction to a Reuters report that the U.S. is working with Sudan to finance a shipment of 1 million metric tons of U.S. wheat to Sudan. "The U.S.-Sudan financing is being worked on with the country mired in an economic crisis that is causing acute food shortages," says AgResource. "The financial 'ask' by Sudan is unlikely to reach 1 million tons of wheat, but any demand from this African nation would be welcomed."
INSIGHTS
Weather? Meh! "U.S. weather is losing its influence on the commodity market," said Karl Setzer of AgriVisor, while he also notes that conditions are still being monitored. Setzer says weather is taking a backseat due to the advanced pace of the U.S. grains harvest. According to the USDA's latest crop progress report released late yesterday, the U.S. corn harvest is 60% complete versus a five-year average of 43%. The soybean harvest is 75% done versus a 5-year average of 58% -- nevertheless, grains futures on the CBOT closed higher Tuesday.
Tight Squeeze: China's rising corn prices due to dry weather affecting domestic crops may not necessarily lead to a jump in the country's corn imports, said Darin Friedrichs of StoneX. "If it's 30 million tons, that doesn't mean the government is going to suddenly import 30 million tons to fill that shortfall. It could just let the market work." He notes that if prices in China remain very elevated then it will squeeze some industrial users who will then reduce consumption. Dalian Commodity Exchange front-month corn traded higher at CNY2,652 a metric ton Tuesday.
AHEAD:
--The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. ET Wednesday.
--Ethanol producer and oil refiner Valero Energy Corp. will release third-quarter earnings before the stock market opens on Thursday.
--The USDA will release its latest weekly export sales numbers at 8:30 a.m. ET Thursday.
--The USDA will release its monthly cold storage report at 3 p.m. ET Thursday.
--The USDA will release its monthly livestock slaughter report at 3 p.m. ET Thursday.
Lucy Craymer contributed to this article.
Write to Kirk Maltais at Kirk.Maltais@WSJ.com
(END) Dow Jones Newswires
10-20-20 1557ET
