Wheat Futures Fall Ahead of Long Weekend — Daily Grain Highlights
–Wheat for December delivery fell 1.1%, to $5.95 1/2 a bushel, on the Chicago Board of Trade on Friday, turning lower ahead of the holiday weekend as traders hedge their bets on Black Sea wheat finding its way onto the export market even without a deal.
–Soybeans for November delivery were virtually unchanged, at $13.68 1/2 a bushel.
–Corn for December delivery rose 0.9%, to $4.82 3/4 a bushel.
HIGHLIGHTS
Late Turn: Wheat moved lower this afternoon after trading higher this morning, thanks in part to the outlook for Black Sea wheat ahead of the Labor Day weekend. “Ukrainian farmers are still managing to place their grains on the global market by using alternative transport routes,” said Commerzbank in a note. “The Ukrainian Ministry of Agriculture reports for example that they have actually been able to export more grains since the beginning of the new season than at this point last year.” Also weighing on wheat is positive outlooks for production globally, even amid hot spells hitting some growing areas.
Short-Covering Wave: Short-covering in a market with very limited volume was the status quo for the CBOT in morning trading, said Brian Hoops of Midwest Market Solutions. Hoops sees it as a move to limit exposure rather than fresh buying. But the short-covering that lifted futures in the morning gave way to fresh selling in the afternoon.
INSIGHT
Seasonality Questions: The upcoming harvest season is expected to weigh on grain prices, but traders are cautious about predicting what the seasonal low price might be ahead of this month’s upcoming WASDE report. “We are entering the time period when a seasonal low could possibly be made, but there are no good signals that we have found one yet,” said Doug Bergman of RCM Alternatives in a note.
Beat the Heat: Hot weather is expected to continue going into next week, but grain traders and analysts are unsure of how much it will affect U.S. corn and soybeans. “What was the impact on yield as corn matured through the grain fill period and soybeans attempted to finish pod set and pod fill?” asks Arlan Suderman of StoneX in a note. “The answer is obvious in some areas, with the crops dying prematurely. But that’s not the case across the Midwest as a whole.”
AHEAD
–The USDA and CBOT will be closed in observance of Labor Day on Monday, reopening on Tuesday.
–The USDA will release its weekly grains export inspections report at 11 a.m. ET Tuesday.
–The USDA will release its weekly crop progress report at 4 p.m. ET Tuesday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
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