Wheat trades limit for the 7th session in a row
Wheat futures moved limit higher again overnight, creating a limit status move for the seventh session in a row. Rumors of Russian troops capturing Europe’s largest nuclear energy facility in Zaporizhzhia, Ukraine, and it was incorrectly reported on fire adding to tensions. The training center for the nuclear reactor is what was on fire, with reports later that the nuclear plant was secure. March Chicago wheat in delivery without limits traded at $13.40, with a volume of 32 contracts.
Corn futures followed wheat pricing higher but did not move limit, while soybeans trade lower at times with soybean oil the weak link during the night session. The Biden administration is pondering altering or ending 2022 RFS requirements to help food inflation. The administration is considering the move to boost corn/soybean supplies and lower prices. No timeframe for a policy change announcement was made, but the waiver talks are said to be of a serious nature. This explains soybeans and corn for their muted response to the wheat rally.
Malaysian palm oil prices collapsed overnight and settled 532 ringgits lower at 6,276 RM/MT. The one-day decline was the largest in the bull market to date, with many now suggesting a top in palm oil prices is coming in place as seasonal supplies start to grow in April.
A spokesman from the USDA said there are no immediate plans for opening up the CRP program. The land program would produce less productive yields. Also, spring planting is just weeks away, and the time is too short to release CRP acres legislatively.
Iraq has set a tender for 2 MMTs of wheat on Saturday for optional origins. It’s anticipated that currently importers will pass on any Black Sea area origins and may actually look towards cheaper quality wheat from India. US wheat will not make the mix as current prices are protecting US carryout and keeping US supplies as still the grain bin of last resort.
South American weather has no change to the current expectations of producing above normal rainfall of 3.50-7.00” of rain for Argentina and southern Brazil over the next week, which will ease the drought. This rainfall is also needed to aid navigation of the Parana River as the export season starts.
Live cattle and feeder futures were again sharply lower on Thursday, with April cattle falling through major chart-based support. April cattle have fallen 9 out of the last 10 days. In contrast, early-week lows in feeder cattle held. The cash beef trade was lower on Thursday similar to earlier in the week at $140.00 were in the north, Iowa and Minnesota sales had life trade at $1 43. Box beef values had choice $1 .37 lower and select $3.55 lower.