By Kirk Maltais


--Wheat for March delivery rose 3% to $6.07 a bushel, on the Chicago Board of Trade on Wednesday, leading grains down in reaction to Argentina's sharp devaluation of its currency versus the U.S. dollar.

--Soybeans for January delivery fell 1.1% to $13.09 1/4 a bushel

--Corn for March delivery fell 1.1% to $4.80 1/4 a bushel.


HIGHLIGHTS


Sweeping Change: The latest moves by Argentina to rectify economic issues--including devaluing the peso and cutting spending--is seen as increasing the amount of grain exports Argentina will put onto world markets, pressuring CBOT grains. "CBOT ag markets are lower with selling from Argentina's proposed shock treatment to calm its raging 140% inflation," AgResource said in a note. President Javier Milei took over office in November.

Timely Rains: Argentina's new programs designed to alleviate the effects of runaway inflation were the chief pressure source for CBOT grains, but not the only - as weather in Brazil delivering rain to parched northern areas is creating downward momentum - potentially easing problems in the dry northern part of the country and improving the possibility for a bumper crop of corn and soybeans. "Heavier rain is forecast to come back in during the middle of next week and continue through January, a more favorable set of conditions if the damage over the next week can be limited," DTN said. Argentina is expected to have "very favorable" growing conditions as well, according to DTN.

Change in Seasons: U.S. ethanol stocks found their highest total since the late summer, according to data from the EIA. The firm said that ethanol inventories in the U.S. totaled 22.1 million barrels for the week ended Dec. 8. That's up roughly 700,000 barrels from Dec. 1, and the highest inventories have been since late August. It also exceeds the estimates of analysts surveyed by Dow Jones this week, who forecast stocks between 21.43 million barrels and 22 million barrels. Average daily ethanol production inched lower for the week, sliding 2,000 barrels a day to 1.074 million barrels a day. Some analysts surveyed this week expected average production to fall more.


INSIGHT


Not Enough Excitement: Export sales for U.S. corn has been improving in recent weeks, but analysts say that there is still little-to-no excitement about this incremental improvement. "The weekly export sales reports have shown good demand for the last several weeks," Jack Scoville of Price Futures Group said in a note. "The market feels that there is more than enough corn for any demand and are not buying futures despite the improved demand."

Export Evidence: Thursday's weekly export sales report from the USDA is expected to show a big boost in wheat export sales, due in large part to the streak of flash sales reported by the USDA to China earlier this month. Analysts surveyed by The Wall Street Journal are expecting wheat sales to land anywhere from 1 million metric tons to 2 million tons. Last week, sales totaled 346,900 tons. Corn and soybean export sales are also expected to exceed 1 million tons, according to analysts. Export demand continues to be a chief factor affecting movement of CBOT futures.


AHEAD


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

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

-The USDA will release its weekly grains export inspections report at 11 a.m. ET Monday.


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


(END) Dow Jones Newswires

12-13-23 1502ET