By Paulo Trevisani


--Wheat for March delivery fell 0.9% to $6.00 1/4 a bushel on the Chicago Board of Trade on Wednesday, adding to losses suffered in the previous session, even as corn and soybeans recovered.

--Soybeans for March delivery rose 0.3% to $12.77 a bushel.

--Corn for March delivery rose 0.3% to $4.65 1/4 a bushel.


HIGHLIGHTS


Bottoming Out: Wheat prices kept falling after Tuesday's selloff, although a colder winter in Russia and Ukraine could bring some relief for prices down the road. AgResource said in a note that wheat was the first market to peak in 2022 "and it will be the 1st to form a long-term bottom." About the Black Sea winter conditions, AgResource said that winterkill damage "is difficult to assess until spring greening, but the forecasts are colder for Black Sea winter grains today."

Breaking Out: Soybeans and corn futures broke out of their morning sluggishness despite rainfall increasing the prospects of Brazilian crops. A strengthening dollar was also mentioned by traders as a headwind for U.S. grains, as it makes them more expensive for foreign buyers. On the other hand, soybeans supply is tight, traders say, while an oversupply of corn is expected to be worked through soon. "The overall situation for beans is tight here but not so for corn. Even so, I think corn will start to hold and trade more sideways," said Price Group's Jack Scoville.


INSIGHT


Waiting For WASDE: Corn markets start the year "with burdensome supplies with the bulls hoping that South American production problems will give them some opportunities," Summit's Tomm Pfitzenmaier said in a note. He added that January's WASDE report, due at the end of next week, will bring final production for the 2023 crop. "The trade will be watching this report closely because it will set the tone for price movement through the winter," Pfitzenmaier said. "It will be hard to trim that large US carryout significantly without an increase in export demand."

Soy And Palm Profits: Malaysian planters' earnings may improve in 2024 on likely lower unit costs amid softer fertilizer expenses and higher productivity, Maybank analyst Ong Chee Ting said in a note. Markets are monitoring the El Nino phenomenon, which has caused delayed soybean planting in Brazil, he said, adding that "a crop failure may lead to a spike in CPO price." Soy and palm oils prices often trade in tandem as they are used in similar products. Market is also concerned that a potential global recession may drive down prices, Ong said.


AHEAD


--Conagra Foods will release its fiscal second-quarter 2024 earnings report Thursday morning.

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


--Ying Xian Wong contributed on this article.


Write to Paulo Trevisani at paulo.trevisani@wsj.com


(END) Dow Jones Newswires

01-03-24 1512ET