By Kirk Maltais


-Soybeans for March delivery fell 1.8% to $12.06 a bushel, on the Chicago Board of Trade on Wednesday, in response to China's GDP being reported as lower than expected by economists.

-Corn for March delivery fell 0.3% to $4.42 1/4 a bushel.

-Wheat for March delivery rose 0.1% to $5.81 1/4 a bushel.


HIGHLIGHTS


Weak Showing: A weaker-than-expected showing from China's GDP had grain analysts and traders attempting to weigh the potential of slow Chinese buying versus tighter Brazilian output throughout the day. "There are questions regarding the size of the Brazilian crop, but right now it is not believed to be small enough to tighten global balance sheets while Chinese demand remains sluggish," said Doug Bergman of RCM Alternatives in a note. China's GDP through 4Q grew by 5.2%, lower than analyst projections.

Stronger Dollar Pressure: A stronger U.S. dollar was another factor keeping a lid on grain futures. "A rebound in the U.S. dollar and poor demand are weighing on the grains," said Karl Setzer of Consus Ag Consulting. The U.S. dollar index rose 0.1% -- which combined with indications of lower U.S. exports had traders selling -- even with short positions in grains building and called 'oversold' by some analysts.


INSIGHT


Back on the Grind: Egypt's state buying authority is back to buying in bulk, with it announcing the second tender for March sought by the country. The resurgence of export demand from one of the largest buyers is providing wheat futures with a lift, although export demand from elsewhere continues to look weak. "Although the U.S. will not get any of the business, it is still demand and takes world wheat supplies down a notch," said Brian Hoops of Midwest Market Solutions. Any boost to futures is expected to be short-lived, said Hoops.

Not Quite Enough: CBOT corn has shed 35% in the past year, with pressure today coming from better-than-expected Brazilian and Argentinian yields and output. Corn attempted to turn around from its latest three-day losing streak, but ultimately finished the day lower. Market watchers forecast that corn will have difficulty maintaining a short-term upward trend unless fresh news spurs trader activity. "Breaking news is absent," said Daniel Flynn of Price Futures Group in a note.

Potential High: Analysts surveyed by Dow Jones say U.S. ethanol inventories could rise as high as 25.4 million barrels, which would be the largest amount of stocks reported by the EIA since March 2023. The EIA pegged supply at 24.37 million barrels last week, which was more than anticipated and the first time they topped 24 million-barrels since April 2023. Higher stocks may indicate a reduction in demand for corn-based ethanol fuel.


AHEAD


-The EIA will release its weekly ethanol production and stocks report at 11 a.m. ET Thursday.

-The USDA will release its weekly export sales report at 8:30 a.m. ET Friday.

-The USDA will release its monthly Cattle on Feed report at 3 p.m. ET Friday.

-The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.


Write to Kirk Maltais at kirk.maltais@wsj.com


(END) Dow Jones Newswires

01-17-24 1515ET