By Kirk Maltais
--Corn for March delivery rose 0.6% to $6.85 1/2 a bushel on the Chicago Board of Trade Monday, finishing higher after the USDA reported a slight uptick in export inspections.
--Wheat for March delivery rose 0.5% to $7.91 1/4 a bushel.
--Soybeans for March delivery were virtually unchanged at $15.44 1/2 a bushel.
HIGHLIGHTS
Slight Uptick: Export inspections for corn are up slightly versus this time last week, but are still well behind the pace of last year. In its latest grain export inspections report, the USDA said corn export inspections totaled 511,506 metric tons for the week ended Feb. 9. That's up from 494,000 tons last week, but well down from 1.46 million tons reported at this time last year. The pace for corn export inspections remains far behind last year's pace, with only 13.06 million tons inspected--down nearly 35% from this time last year. Even so, the increase in weekly inspections helped support corn Monday.
Ramping Up the Fighting: The Wall Street Journal reports that Russia has advanced through Ukrainian resistance in the city of Bakhmut, this while fortifying its own defensive positions in the southern portion of the country. The increased fighting provided support for wheat Monday. "Fears of deliveries of wheat from the Black Sea are surfacing again," said Jack Scoville of Price Futures Group. Meanwhile, some agencies are reducing their outlook for the Russian wheat crop, although expected production remains high.
Wash Out: Rainfall in Argentina over the weekend was a source of pressure to grain futures, particularly this morning. "CBOT futures are lower on needed rain across the southern half of Argentine crop area overnight with additional showers to occur for another 48 hours across central and northern areas," said AgResource in a note early Monday. "The forecast models have (again) under-projected rainfall."
INSIGHT
Product Placement: Strength in soymeal futures has been a source of support for soybean futures. Soymeal is trading particularly high at over $500 a ton--due largely to the weather in South American growing areas in recent weeks, said Craig Turner of StoneX. "These prices tend not to last long," said Mr. Turner in a note. "There is spec money going into meal due to the weather issues in South America." Prices for soymeal have surged over 20% in the past three months.
Close Relation: The relationship between equities and commodities was not close in trading last year, with the S&P GSCI Commodity Index outperforming the MSCI World Index, Capital Economics said in a note. However, that relationship is expected to grow much closer this year, said the firm--thanks to fewer interest rate increases expected by world central banks, along with depressed demand for commodities due to economic recessions around the globe. Equity markets traded higher Monday, while commodities were mixed.
Growing Interest: Open interest in commodities continues to climb through the start of the year, according to the latest data from JPMorgan Global Commodities Research. The firm reports that open interest in overall commodities grew by nearly $34 billion for the week ended Feb. 10. Gains in open interest for energy futures were the primary drivers for the higher open interest, with agricultural futures gaining open interest as well. However, metal open interest slid $11.6 billion. "The rebound in crude oil and agri commodity prices drove much of the weekly increase, which was the largest over the month," said the firm.
AHEAD
--Andersons Inc. will release its fourth-quarter earnings report at 4 p.m. ET Tuesday.
--Kraft Heinz Co. will release its fourth-quarter earnings report at 7 a.m. ET Wednesday.
--Nutrien Ltd. will release its fourth-quarter earnings report at 7 a.m. ET Wednesday.
--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
02-13-23 1544ET
