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Wheat Falls Amid Pre-Holiday Profit Taking -- Daily Grain Highlights

11/24/2021 | 03:41pm EST

By Paulo Trevisani

--Wheat for March delivery fell 2% to $8.50 1/4 a bushel on the Chicago Board of Trade Wednesday as weather forecasts turned bearish and investors realized profits ahead of the holiday.

--Soybeans for January delivery fell 0.5% to $12.66 1/2 a bushel.

--Corn for December delivery fell 0.1% to $5.79 3/4 a bushel.


Rising Tide: The EIA said Wednesday U.S. ethanol inventories rose in the week ended Friday, in line with expectations. Ethanol inventories were reported at 20.2 million barrels, up from 20.08 million barrels in the previous week. Daily production rose by 19,000 barrels per day to 1.08 million barrels per day.

Damp Down Under: Higher than usual rainfall in Australia was seen as a threat to global supplies, while Brazil and Argentina are likely to have more favorable weather for crops. U.S. weather "will continue quiet with net drying in hard red winter wheat areas, the northwestern Plains, California, the southwestern desert areas and West Texas cotton country. Showers will occur in the Delta, southeastern states and lower and eastern portions of the Midwest, but only infrequently and lightly," Futures International said. U.S. markets will be closed Thursday for Thanksgiving.

Covid Concerns: The USDA reported export sales of 330,000 tons of soybeans to unknown destinations, 100,000 tons of corn for delivery to Mexico and 30,000 tons of soybeans sold to India, all to be delivered during the 2021/22 marketing year. The news came as markets weighed bullish weather conditions against concerns of slowing global demand because of a new wave of Covid-19.


Rally In The Cards?: Grain futures fell ahead of Thanksgiving, a day typically marked by low volumes that can lead to wide price moves, but weather conditions are expected to drive prices going forward. The Hueber Report said: "With harvest behind us, the focus will undoubtedly shift to demand, or lack thereof, and South American weather, which should keep bears from feeling overconfident for the time being." The report expects corn to trend higher "through the balance of the year," with prices possibly reaching $6 a bushel. "With indicators positive, that would certainly not come as a surprise."

Overbought: Wheat futures fell, but AgResource said the March contract "can lose another 15-20 cents and still maintain a longer-term bullish trend," adding that "The volume of trade has been surprisingly robust for a pre-holiday session," amid profit taking as grain markets "are heavily overbought." AgResource said that markets have already absorbed excessive rainfall in Australia, while soil moisture in Argentina is expected to improve. "South American weather into early Dec is favorable."


--The Chicago Board of Trade will be closed Thursday in observance of Thanksgiving, with the exchange reopening Friday morning.

Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

11-24-21 1540ET

Stocks mentioned in the article
ChangeLast1st jan.
CORN FUTURES (C) - CBR (FLOOR)/C1 0.47% 586.25 End-of-day quote.21.07%
WHEAT FUTURES (W) - CBR (FLOOR)/C1 0.28% 799.25 End-of-day quote.24.43%
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