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Wheat Keeps Climbing as Focus Turns Domestic — Daily Grain Highlights

By Kirk Maltais

 

-- Wheat for July delivery rose 2.4% to $12.77 1/2 a bushel on the Chicago Board of Trade Tuesday, with traders viewing upcoming weather in the U.S. as not being enough to significantly propel planting for spring wheat.

-- Soybeans for July delivery rose 1.3% to $16.78 a bushel.

-- Corn for July delivery fell 1.1% to $8.00 3/4 a bushel.

 

HIGHLIGHTS

 

Change in Focus: Wheat continued to gain following Monday's rally on confirmation of the Indian export ban, but traders turned their attention to weather.

"Spring wheat planting remains much behind normal and overall spring wheat planting could be reduced because of the delayed planting pace," said Jack Scoville of Price Futures Group in a note.

On Monday, the USDA reported spring wheat was 39% planted, versus 83% at this time last year and a five-year average of 67%.

 

Mirror Image: Wheat saw a boost from indications of dry and warm weather out west where drought is a problem versus excessive moisture in the east which has slowed planting. For corn, both weather and demand were being watched closely by traders.

"Corn traded down on lack of new export demand, drier forecasts for the Dakotas, and forecasters taking frost out of the picture for the southern Brazilian safrinha," said Charlie Sernatinger of ED&F Man Capital in a note.

 

INSIGHTS

 

Step Forward: Although the planting pace is still behind, the USDA reported late Monday that U.S. farmers made big progress in planting over the past week. In the USDA's latest crop progress report, the agency said that 49% of the U.S. corn crop is now planted, versus 22% at this time last week. Soybean planting progressed to 30%, while spring wheat pushed to 39%.

While all three of these levels are well below the pace of this time last year, a lot of progress is expected to be made this week, said Karl Setzer of AgriVisor in a note.

 

Steady Course: Analysts surveyed by Dow Jones this week are forecasting a relatively steady picture for ethanol in the EIA's weekly report Wednesday. Analysts largely expect a slight uptick in daily production while forecasting stocks to move only minimally in either direction.

Analysts surveyed are forecasting daily production to fall between 970,000 barrels per day and 1.001 million barrels per day, versus 991,000 barrels per day last week.

Meanwhile, stocks are predicted between 23.78 million barrels and 24.29 million barrels, versus 24.14 million barrels last week.

 

AHEAD

 

-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EDT Wednesday.

-- The USDA is due to release its weekly export sales report at 8:30 a.m. EDT Thursday.

-- The USDA is scheduled to release its monthly livestock slaughter report at 3 p.m. EDT Thursday.

 

Write to Kirk Maltais at kirk.maltais@wsj.com

 

(END) Dow Jones Newswires

May 17, 2022 15:53 ET (19:53 GMT)

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