By Kirk Maltais 



  --Wheat for September delivery fell 0.9% to $5.29 1/2 a bushel on the Chicago Board of Trade Thursday, with rainfall expected to aid sizable crop growth in the Midwest. 


  --Corn for December delivery rose 0.2% to $3.35 1/2 a bushel. 


  --Soybeans for November delivery rose 0.5% to $9.00 a bushel. 


  HIGHLIGHTS 


  Raincheck: Rainfall expected this weekend puts some pressure on grains futures Thursday. "Corn and wheat futures remain reluctant to break through chart-based resistance amid favorable Central U.S. and Canadian weather," said AgResource. Scattered showers are expected to persist into next week across the Corn Belt with temperatures near or above normal, according to agricultural weather research firm DTN. Longer term, traders view world grain supply as ample, even if export demand for U.S. crops appears to be improving. "A mixed close is anticipated, with longer term direction still a function of U.S. crop sizes," said AgResource. 


  Flood Insurance: Flood conditions in crop-growing regions in China underpinned the slight uptick seen in CBOT soybeans futures Thursday. "Just in the past 48 hours, nearly 20 inches have fallen on Southern Henan," said Dan Hueber of the Hueber Report. "While actual crop losses are likely minimal at this point, the subsequent flooding has created a multitude of other problems, including the outbreaks of [African swine fever] yet again." This is one factor that may spur China to purchase more U.S. soybeans - as well as pork exports. 


  INSIGHTS 


  Tensions Tightening: Grain traders Thursday were vocal about the recent strain in U.S.-China relations. "Tensions with China continue to boil in the background of the commodity and equity markets," said Arlan Suderman of StoneX. "Market observers wonder where the breaking point will be where China cuts off trade with the United States." However, traders do believe that more big soybean purchases by China are coming. "[China] must get enough soybeans from the United States to bridge the gap until Brazil's 2021 harvest," said Suderman. 


  Grain Glom: Demand for U.S. grain exports came in strong for the week ending July 16, with the USDA reporting large sales figures for corn and soybeans. Corn exports totaled 2.55 million metric tons, while soybean sales totaled 2.67 million tons. This on top of a new notice of 132,000 tons of soybeans sold to China for the 2020/21 marketing year. "We're seeing strong demand with exports exceeding expectations," said Doug Bergman of RCM Alternatives. 


  AHEAD: 


  --The USDA releases its monthly cattle on feed report at 3 p.m. ET Friday. 


  --The CFTC releases its weekly commitment of traders report at 3:30 p.m. ET Friday. 


  --The USDA releases its weekly grain export inspections data at 11 a.m. ET Monday. 


  --The USDA releases its weekly crop progress report for the 2020/21 crop at 4 p.m. ET Monday. 


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