Summary of the afternoon market of November 22, 2021
Corn and soy also tend to increase moderately to start the week.
Cereal prices started a short holiday week with some bullish action after wheat contracts trended noticeably higher on a wave of technical buying that left some contracts higher by more than 3% at the fencing. The strength of the fallout helped corn and soybean prices benefit from technical buying as well, with both commodities gaining around 1% today. Large gains in external markets (energy, equities, etc.) provided additional support at the start of the week.
Wet weather is possible later this week in a strip stretching from Oklahoma to Ohio, although very few areas are likely to see more than 0.25 “between Tuesday and Friday, according to the latest. 72-hour cumulative precipitation map from NOAA. that of the agency 8-14 day outlook predicts a return to wet seasonal conditions for the northern plains between November 29 and December 5, with warmer-than-normal temperatures likely for most of the country.
On Wall St., the Dow Jones rose 247 points in afternoon trading to 35,849, as investors expressed confidence that Jerome Powell will continue to lead the Federal Reserve through inflation challenges. current, rather than moving to a new central bank chief during these ongoing issues. Energy prices have strengthened following reports that OPEC may reassess its current production levels. Crude oil rose more than 1% to almost $ 77 a barrel. Diesel increased by 1.5% and gasoline by 2.25%. The US dollar strengthened moderately.
As of Friday, commodities funds were net buyers of soybean meal (+1,000) and CBOT wheat (+1,000) contracts but were net sellers of corn (-4,000), soybeans (-1,000) and soybean oil (-6,000).
Corn price rose 1% on Monday following a series of technical buys boosted by the strength of the fallout from wheat and a wide range of other commodities, with optimism in demand providing further support today hui. December futures rose 5.75 cents to $ 5.7650, March futures rose 7.25 cents to $ 5.8425.
Corn-based offers showed some variability on Monday after rising 5-7 cents more at two Midwestern ethanol plants, while falling as much as 8 cents lower at one Iowa processor today ‘hui.
Corn export inspections fell 29% for the week ending Nov. 18, to 24.3 million bushels. This was the very low end of trade estimates, which ranged from 23.6 million to 39.4 million bushels. Mexico was the # 1 destination with 9.7 million bushels. Cumulative totals for MY 2021/22 saw last year’s lead widen slightly, to a total of 299.5 million bushels.
Ahead of the USDA’s next crop progress report, released later this afternoon, analysts expect the agency to report this year’s corn harvest is 96 percent complete until November 21, up from 91% a week ago.
Ukraine’s corn exports in 2021/22 reached 181.1 million bushels, and the country’s Agriculture Ministry expects a total of 1.216 billion bushels by the end of this year. marketing. The country enjoyed a record grain harvest this fall and is one of the world’s leading corn exporters.
South Korea has launched an international tender for the purchase of 2.3 million bushels of feed corn, probably from Australia. The tender ends on Tuesday and the grain is due to arrive at the end of April.
Preliminary volume estimates were for 354,515 contracts, a slightly higher trend than Friday’s final tally of 245,124.
Soybean price posted double-digit gains after tracking corn, wheat and a wide range of other commodities on the rise, closing almost 1% higher after a series of technical buys today. Soybean oil futures jumped more than 2%, with soybean meal futures facing declines of 0.5%. January futures added 11.75 cents to $ 12.75, March futures were up 11.25 cents to $ 12.8625.
Base soybean offers fell 2 cents at an Illinois river terminal and 5 cents at a processor in Iowa, while remaining flat elsewhere in the central US today.
Soybean export inspections have eroded 29% from the previous week’s tally, to 61.9 million bushels. Analysts generally expected a larger total, with trade estimates ranging between 40.4 million and 91.9 million bushels. China accounted for more than half of the total, with 45.3 million bushels. Cumulative totals for MY 2021/22 remain slightly lower than last year after reaching 667.3 million bushels.
Ahead of USDA’s crop progress report this afternoon, analysts believe the agency will show the 2021 soybean crop to drop from 92 percent a week ago to 96 percent through Sunday. .
Chinese imports of US soybeans in October fell 77% year-on-year to 28.5 million bushels, according to recent customs data. Some of the culprits include supply chain disruptions caused by Hurricane Ida, as well as relatively low grinding margins and competition from Brazil. Last month, total shipments from all destinations were 41% lower than in October 2020 and represented the lowest monthly tally since March 2020.
The progress of soybean plantings in Brazil is around 85%, according to two recent estimates from consulting firms Safras & Mercado and AgRural. That’s ahead of the 2020 pace of 74.1% and the historic average of 77.2%. Barring major weather disasters, most experts predict record soybean production this season.
South Korea has launched an international tender to purchase between 8,000 and 16,000 tonnes of soybean meal, likely from South America, which ends tomorrow. The grain is intended to be shipped between mid-February and mid-March.
Preliminary volume estimates were for 106,773 contracts, which is slightly lower than Friday’s final tally of 136,121.
Wheat prices made substantial gains after a series of tech buys on Monday, as the focus remained on strong global demand and a host of other issues, including supply chain challenges from flooding in Canada, taxes Russian exports, drought conditions on the American plains and more. December Chicago SRW futures rose 24.25 cents to $ 8.4725, Kansas City HRW December futures rose 28.25 cents to $ 8.63, and December MGEX futures on spring wheat rose 11.5 cents to $ 10.2175.
Wheat export inspections were lackluster, dropping 54% week-over-week to 6.5 million bushels. This was below the overall trade estimate, which ranged from 7.3 million to 18.4 million bushels. South Korea leads all destinations, with just 1.8 million bushels. Cumulative totals for MY 2021/22 are still slightly lower than last year’s pace, at 385.4 million bushels.
Ahead of this afternoon’s USDA Crop Progress Report, analysts believe the agency will show winter wheat planting has gone from 94% complete a week ago to 97% as high as 97%. ‘see you on Sunday. The quality of the crops is expected to be maintained, with 46% of them rated as good to excellent.
Ukraine’s wheat exports for 2021/22 have reached 514.4 million bushels since early July, and the country’s agriculture ministry expects total wheat exports to exceed 900 million bushels this year of marketing. Total grain exports are forecast to increase by more than 20% year over year.
The Philippines bought about 1.5 million bushels of wheat for animal feed in a tender that closed last Friday. The grain is probably from Australia and is due to ship in February.
Preliminary volume estimates were for 112,760 CBOT contracts, fading slightly below Friday’s final tally of 119,967.
Get our best content straight to your inbox. Subscribe to our morning and afternoon newsletters!