Soybeans Rise With Help From Biofuel Plant Approval -- Daily Grain Highlights
January 22 2024 - 2:50PM
Dow Jones News
By Paulo Trevisani
--Soybeans for March delivery rose 0.9% to $12.24 1/4 a bushel,
on the Chicago Board of Trade on Monday, as traders reacted to news
foreshadowing higher demand for soy-based fuel.
--Wheat for March delivery rose 0.6% to $5.96 1/2 a bushel.
--Corn for March delivery was unchanged at $4.45 3/4 a
bushel.
HIGHLIGHTS
Soy Tailwind: Soybeans futures got support from last week's news
that Phillips 66 received approval to operate its 50,000 barrels
renewable diesel plant in Rodeo, Calif. AgResource said the
decision boosted soyoil futures and "the story in soyoil is
tightening stocks into the spring and summer draw period that bumps
soyoil higher at the expense of soymeal." AgResource also reports
that Brazilian soybean farmers are seeing cash bids as low as $8.77
a bushel for new crops, "causing many producers to consider whether
they should take the financial risk and plant a winter corn
crop."
Wheat Turnaround: Wheat prices fell in early trade today before
turning positive. The decline was linked to weakness in Paris wheat
futures, AgResource said in a report. Increased weekly export
inspections for wheat reported by the USDA supported the
turnaround.
INSIGHT
Watching Rainfall: Corn traders considered whether recent and
forecast rain could salvage Argentine crops, Summit's Tomm
Pfitzenmaier said in a note. "The market has become oversold, so it
will be interesting to see if the market can muster a genuine
recovery rally or just a sideways move to correct the oversold
condition," Pfitzenmaier said. "The large US carryout along with
the South American production numbers that were little changed in
the recent USDA reports leaves traders with little interest in
owning corn."
Brazilian Harvest: Brazilian soybean harvest reached 6% of the
planted area last week amid productivity losses caused by an
extended drought, AgRural said in a note. A week earlier, harvest
was limited to 2.3% of planted area. AgRural adds that planting of
the 2024 second-crop corn, or "safrinha," reached 5% of the
estimated acreage, up from nearly zero a week earlier and 1% a year
ago. Harvesting of the 2023-24 corn crop reached 8%, AgRural
said.
AHEAD
--The EIA will release its weekly ethanol production and stocks
report at 10:30 a.m. ET Wednesday.
--The USDA will release its monthly Cold Storage report at 3
p.m. ET Wednesday.
--The USDA will release its weekly export sales report at 8:30
a.m. ET Thursday.
--The USDA will release its monthly Livestock Slaughter report
at 3 p.m. ET Thursday.
--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
January 22, 2024 15:35 ET (20:35 GMT)
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