By Kirk Maltais
--Wheat for March delivery fell 2.1% to $7.80 1/4 a bushel, on the Chicago Board of Trade Monday, with traders selling as data points to lower prices for wheat exports globally.
--Corn for March delivery fell 0.1% to $6.71 a bushel.
--Soybeans for January delivery rose 1.4% to $14.56 1/2 a bushel.
HIGHLIGHTS
Question of Supply: Wheat futures led the grain complex lower on indications that supply on the export market appears ample, despite Russia slowing shipments of Ukrainian grains leaving their ports. Prices paid for wheat imports in Egypt have fallen to pre-war levels, and places like the U.S. also have ample supplies, said John Payne of Hedgepoint Global. "We have plenty of wheat around in this country over the near term, I think it's more of a storage issue at this point," Mr. Payne told the WSJ.
Protest Punch: Protests in China over the government's zero-tolerance approach to Covid-19 were pressuring markets across the board, adding fuel to concerns about Covid-19 impacting demand for goods in China. "The restrictions are strongly impacting the country's economic activity," AgriTel said in a note.
Breaking the Mold: Strength seen in crude oil prices provided support for CBOT soybean futures, as well as soymeal and soyoil. "The rebound in energies and light concern over South American weather is providing support," Rich Nelson of Allendale Inc. told the WSJ. Crude oil is up 1.2% Monday afternoon. However, Mr. Nelson adds, other factors are in place that may quickly shift market sentiments. "Many are still wary about this strength though as the China news, Argentina's soy-dollar program and other factors remain in place," he said.
INSIGHTS
Swayed by Inflation: The debate over 'Food vs. Fuel'--whether to allocate more crop production to produce either food products or renewable fuels--favors food for agricultural producers, said Capital Economics in a note. "The impending global recession will weigh on energy demand, helping to keep a lid on prices over the next year," said the firm. "What's more, the U.S.--by far the world's largest biofuel producer--is much less exposed to the current energy crisis than it was to the previous crisis." The firm also adds that U.S. focus for cutting automotive carbon emissions appears to be on implementing electric vehicles, instead of using more biofuels.
Inspections Inch Back: Export inspections for U.S. grains are lower than last week's, with China continuing to be the leading destination for soybean shipments. In its latest grain export inspections report, the USDA said that export inspections of soybeans totaled 2.02 million metric tons for the week ended Nov. 24, down from 2.43 million tons reported last week. Meanwhile, corn inspections totaled 302,350 tons and wheat inspections totaled 198,519 tons, both down from last week's report. China was again the leading destination for U.S. soybeans, receiving roughly 1.5 million tons of soybeans. Mexico and Ethiopia were the leading destinations for U.S. wheat, and Mexico was the leading destination for U.S. corn.
AHEAD:
--Hormel Foods Corp. will release its Q4 earnings report before the stock market opens on Wednesday.
--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.
--The USDA will release its monthly agricultural prices report at 3 p.m. ET Wednesday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
11-28-22 1506ET
