Corn Rises as Farm Assets Avoid Sales in Larger Market – Daily Grains Highlights
By Dan Molinski
–Corn for January delivery rose 1.2% to $ 5.87 a bushel on the Chicago Board of Trade on Friday as investors sought safe havens to park their funds amid a Covid-induced sale in energy stocks and products.
–Soybeans for January delivery fell 1.1% to $ 12.52 a bushel
–Wheat for January delivery fell 1.3% to $ 8.25 a bushel.
The fear returns: grain futures have seen a bit of everything on Friday. They quickly joined other financial markets to sell on a large scale, but then broke away from the intensifying rout as the shortened holiday session dragged on, and corn even managed to close higher. âThe charts look smelly when they get home, the Covid effect is questionable for next week and the seasonal workers don’t appear until December 10,â says Charlie Sernatinger of EDF Man Capital Markets, of corn. âSo how do you trade that? It looks like we have a several session correction ahead, especially in light of the ‘no prisoner’ breakout in oil prices today. Overall, corn continues to reach higher heights. ”
It’s not all about Covid: As renewed fears about Covid dominate all discussions among futures traders heading into the weekend, grains showed on Friday that they are operating more independently of the “market” than many other sub-sectors, and analysts say that next week investors once again set their sights on crop yields, weather conditions and other supply-related issues. âWheat closed lower after hitting new highs for the move as too much rain falls on Australian crops,â said Jack Scoville of Price Futures. “The rains could easily affect crop quality and yields. The Australian problems come as the north also experienced its share of problems during the growing season and European prices hit new highs yesterday. The ideas are that the United States is going to have good demand for wheat as the rest of the northern hemisphere runs out of production this year. ”
Weather monitoring: While the overall question about the new variant of Covid could certainly have an impact on demand, the weather will also be in the foreground. “The international 6-10 day forecast calls for below normal precipitation for the far south of Brazil with below normal temperatures over the north, below normal precipitation for the Argentine cereal areas with normal temperatures, above normal precipitation for the east coast of Australia with below normal precipitation.normal temperatures for the east and below normal precipitation for the western half of South Africa with lower temperatures to normal, âsaid Mr. Sernatinger of EDF.
–The USDA releases its weekly grain export inspection data at 11 a.m. ET on Monday.
–USDA will release its weekly Crop Progress Report at 4 p.m. ET on Monday.
–The USDA releases its monthly farm price report at 3 p.m. ET Tuesday.
Write to Dan Molinski at [email protected]
(END) Dow Jones Newswires