By Kirk Maltais


--Soybeans for January delivery rose 1.9%, to $13.54 1/4 a bushel, on the Chicago Board of Trade on Friday, leading a bounce-back on CBOT futures in response to adverse weather conditions in Brazil.

--Corn for December delivery rose 1.7%, to $4.78 1/4 a bushel.

--Wheat for December delivery rose 1.3%, to $5.73 1/2 a bushel.


HIGHLIGHTS


Both Sides of the Coin: Brazil weather has gradually become the main catalyst for higher grains throughout Friday. "Brazilian weather is gaining in market importance due to ongoing heat/dryness across Northern Brazil and excessive rain for Southern Brazil," AgResource said in a note. "Brazilian weather has reached a point where crop production potential is in retreat." Northern dryness has Brazilian farmers halting their planting of soybeans until adequate rainfall arrives, the firm adds, while the excess rain is creating mold problems and washing out corn and wheat in the south.

Currency Support: A roughly 1% decline in the U.S. Dollar index supported many commodities across the board, with the grains complex being a strong beneficiary of this drop. The timing comes after funds are seen to have added short positions in grains, which may see some unwinding today, said Karl Setzer of Consus Ag Consulting. Dropping strength in the U.S. dollar is expected to spur more interest in U.S. grains exports, with foreign buyers seeing prices as more attractive.


INSIGHT


Eyes Abroad: Many traders and analysts are shifting their attention to overseas events, especially regarding soybeans. "With harvest beginning to wrap up in most states, weather concerns in South America and some prospects for improvement in Chinese export business there are a few reasons for traders to take some interest in long soybean positions," said Tomm Pfitzenmaier of Summit Commodity Brokerage in a note.

Reversing Course: Higher corn Friday came after finding its lowest level since December 2020 on Thursday, when most-active corn closed at $4.70 a bushel, falling below the $4.75 a bushel that traders see as the support level for corn. Friday's bounce was a shift to technical buying as opposed to fundamental drivers, said Steve Freed of ADM Investor Services in a note. "There remains concern about slow demand for U.S. corn," he said.


AHEAD


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

--The USDA will release its weekly crop progress report at 4 p.m. ET Monday.

--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.


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


(END) Dow Jones Newswires

11-03-23 1531ET