Corn plunges as funds pull back from agricultural commodities – Daily Grains Highlights

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By Kirk Maltese

– Corn for December delivery fell 5.5% to $6.55 1/2 a bushel at the Chicago Board of Trade on Thursday, as fund traders pulled out of large grain longs amid speculation on an economic recession.

— Wheat for September delivery fell 4% to $9.49 1/4 a bushel.

— Soybeans for July delivery fell 3.6% to $15.93 1/4 a bushel.

STRONG POINTS

Hands-off approach: Grain futures on the CBOT fell sharply before the end of the month and quarter.

“CBOT grain futures are significantly lower on continued risky selling in a cascading weekly price drop,” AgResource said in a note, adding that the interest rate hike seen at globally this month contributes to month-end sales. “Fundamentally, it is difficult to justify the severity of the break with the 2022 growing season for summer row crops that have not yet passed their most sensitive stage of development.”

Flashback: The close of grain futures on Thursday put the most active corn and wheat contracts at their lowest close since late February, before fighting in Ukraine pushed futures higher.

Overlapping factors contributed to Thursday’s weakness, Dan Hueber of the Hueber Report told the WSJ. “I think it’s a combination of the lack of significant weather issues, the general sell-off in commodities over fears of slowing economies, and the fact that we’re approaching the end of a month and a quarter.” , did he declare.

KNOWLEDGE

Loosening: The USDA is working with more ports to help ease congestion clogging shipping channels for U.S. grain, with the agency saying it is now working in Tacoma, Washington and Houston to help “ensure that agricultural enterprises and cooperatives can export their products.” At these sites, the USDA says it will provide payments for dry or refrigerated containers to be used as temporary storage. The USDA previously announced similar efforts at the ports of Oakland and Seattle.

In its weekly grain transportation report, the USDA said grain shipments by rail, barge and ocean-going ship were all down from the same time last year.

Rise expected: US corn exports are expected to rise in this week’s USDA report, according to grain traders surveyed by The Wall Street Journal.

Maize export sales are expected to total between 550,000 metric tonnes and 1.05 million tonnes, compared to 279,800 tonnes reported last week.

Meanwhile, soybean sales are expected to fall from last week’s figure, with estimates ranging from 250,000 tonnes to 650,000 tonnes.

Wheat sales are expected to total 250,000 tonnes to 400,000 tonnes, which would be up from 236,900 tonnes last week.

Data delay: The weekly release of daily ethanol production data, as well as U.S. ethanol inventories, has been delayed, according to the EIA. The EIA said on Wednesday that problems with its systems forced the delay of its oil data, although on Thursday the EIA was able to release statistics on natural gas storage. Due to the June 16 holiday, the data was due for release at 10:30 a.m. EDT Thursday.

Thursday’s report would have let traders know if gas/ethanol demand had been sustained despite high gas prices, Summit Commodity Brokerage’s Tomm Pfitzenmaier said in a note this morning.

AHEAD

— The USDA is due to release its weekly export sales report at 8:30 a.m. EDT on Friday.

— The USDA is due to release its monthly Cattle on Feed report at 3 p.m. EDT on Friday.

— The CFTC is scheduled to release its weekly Trader Commitments report at 3:30 p.m. EDT on Friday.

Write to Kirk Maltais at [email protected]

(END) Dow Jones Newswire

06-23-22 1605ET

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