Corn Leads Grain Futures Higher — Daily Grain Highlights

By Paulo Trevisani

– Corn for December delivery rose 1% Wednesday to $6.63 1/4 a bushel on the Chicago Board of Trade amid rising ethanol production.

–Soybeans for January delivery rose 0.5% to $14.36 a bushel.

– Wheat rose 0.4% in March to $8.13 1.2 a bushel.

HIGHLIGHTS

Pre-Christmas Trading: Wheat and soybeans joined corn futures, moving on the positive side towards the end of pre-Christmas trading, even as markets face increasing supply from South America and the Black Sea amid fears of a demand-sapping recession. “Ukraine continues to export wheat/corn,” AgResource said in a report. “Amid a bumper harvest, Russia will remain an aggressive seller,” it warned. The CBOT will be closed tomorrow for Thanksgiving.

Southern competition: The USDA this week reported the first flash export sales: 110,000 tons of soybeans for shipment to China in the 2022-2023 marketing year. US soybeans are facing increasing competition from South America. “Brazilian soybean planting is now 76% complete and given the good growing conditions there, we expect importers to quickly start shifting their purchases from the US to Brazil,” Summit’s Tomm Pfitzenmaier said in a report.

INSIGHT

Ethanol Lift: Corn futures rose after the US weekly ethanol report showed production rose more than forecast, although inventories also rose above expectations. The EIA said production was 1.04 million barrels a day last week, up from 1.01 million the week before but still lower than a year earlier. Closing inventories were reported at 22.8 million barrels versus 21.3 million for the week of November 11th. Analysts polled by the WSJ had forecast production between 1 million and 1.02 million barrels per day and inventories between 21.1 million and 21.2 million barrels.

Potential Headwinds: Grain futures reversed early losses, but producers face potential headwinds. “Supplies in the US and globally remain tight, but US prices are high enough relative to the rest of the world that the US is struggling with exports,” RCM’s Doug Bergman said in a report. Soybeans are facing a record harvest in Brazil. Bergman says of corn, “US inventories are tight, but we’re already at a level where demand is slowing.”

AHEAD

–The USDA and the Chicago Board of Trade are both closed Thursday for Thanksgiving. Both will reopen on Friday.

–The USDA will release its weekly export sales report Friday at 8:30 am ET.

Write to Paulo Trevisani at [email protected]

(ENDS) Dow Jones Newswires

11/23/22 1517ET

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