Grains Futures Rise as Rain Falls in Brazil -- Daily Grain Highlights
December 22 2023 - 3:18PM
Dow Jones News
By Paulo Trevisani
--Wheat for March delivery rose 0.6% to $6.16 1/4 a bushel on
the Chicago Board of Trade on Friday, as forecast rainfall in
Brazil looks insufficient to significantly boost crops.
--Soybeans for March delivery rose 0.4% to $13.06 1/4 a
bushel.
--Corn for March delivery rose 0.1% to $4.72 3/4 a bushel.
HIGHLIGHTS
Rain Watch: The northern growing areas of Brazil finally got
some rain after experiencing drought for much of the year.
"Welcomed rainfall lingers in northern Brazil...but so far calls
for widespread soaking rain failed to verify," AgResource said in a
note, adding that Brazilian soybean crops may need more rain than
what is forecast.
Impact on Brazil: Irregular rainfall and high temperatures had
an impact on seeding and crop development in key food-producing
areas of Brazil, the country's agricultural agency Conab said
Friday. "The presence of areas with low, medium, and high soil
moisture levels resulted in mixed conditions, being sufficient or
restricted, in certain areas, for the seeding and development of
summer crops," Conab said.
INSIGHT
Corn Needs: It will take production problems in South America
and improved U.S. exports for corn futures to achieve and maintain
rallies, Summit's Tomm Pfitzenmaier said in a note. Light trading
volumes are expected because of the holidays, but Pfitzenmaier said
that in the longer term, more demand for U.S. exports will be
needed. On Thursday, the USDA reported weekly corn exports below
expectations.
Grain Headwinds: Heading into 2024, grains markets face large
stocks in the Northern Hemisphere, a humanitarian corridor in
Ukraine and inexpensive Black Sea corn and wheat, AgResource said
in a report. Chaotic climate patterns and an improved economic
outlook for the U.S. will also move markets. "Volatility continues
indefinitely," AgResource said.
AHEAD
--The USDA and CBOT will be closed in observance of the
Christmas holiday. Both reopen Tuesday.
--The USDA will release its weekly grains export inspections
report at 11 a.m. ET Tuesday.
--The EIA will release its weekly ethanol production and stocks
report at 11 a.m. ET Thursday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Friday.
--The USDA will release its monthly Agricultural Prices report
at 3 p.m. ET Friday.
--The CFTC will release its weekly Commitment of Traders report
at 3:30 p.m. ET Friday.
Write to Paulo Trevisani at paulo.trevisani@wsj.com
(END) Dow Jones Newswires
December 22, 2023 15:03 ET (20:03 GMT)
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