By Kirk Maltais


-- Wheat for May delivery fell 3.4% to $5.32 1/4 a bushel on the Chicago Board of Trade on Wednesday, with early optimism that prices have dropped low enough to stimulate export demand giving way to views of growing abundance of supply on world markets.

-- Soybeans for May delivery rose 0.1% to $11.49 1/2 a bushel.

-- Corn for May delivery rose 0.7% to $4.29 a bushel.


HIGHLIGHTS


Sentiment Shift: Global export sales of wheat were the focus for traders amid hopes that a large purchase by Algeria would open the doors for increased buying from other countries.

However, this didn't transpire.

"Apparently not a whole lot of wheat delivery took place," John Payne of Hedgepoint Global said. Traders are also bracing for Friday's WASDE report confirming larger wheat supplies globally, he added.


Washed Out: Corn and soybeans were under varying degrees of pressure due in large part to wet weather arriving to South America and supporting crop growth.

The main surprise traders are looking for out of Friday's WASDE report are adjustments to the USDA's South American production.

"Friday's report will probably not hold any huge surprises for U.S. production, etc. but we could see some action depending on what they do with South American numbers," Donna Hughes of StoneX said.


INSIGHT


Priced In: Ahead of Friday's WASDE report, grain traders have spent much of the week largely pushing futures lower.

The downward momentum may insulate the market from any big swings in the event of a negative report, said Virginia McGathey of McGathey Commodities.

"The report on Friday may give us a better idea on market direction for the time being, but not looking good right now," she said. "Keep in mind, if the report is bearish it may already be in the market -- so I think if there is follow-through selling it may not be as much."


Forging Ahead: Inventories of ethanol in the U.S. continue to push past the 26 million-barrel mark, according to the latest EIA data.

In its weekly report, the EIA said inventories for the week ended March 1 totaled 26.05 million barrels. That is up from 26.02 million barrels, and the highest inventories have been since March 17, 2023, when inventories were at 26.19 million barrels. This fell within analyst projections, with stocks forecast between 25.98 million and 26.5 million barrels by analysts surveyed by Dow Jones.

Growing ethanol stocks are expected to continue on strong production and negative gasoline demand, said Tomm Pfitzenmaier of Summit Commodity Brokerage in a note.


AHEAD


-- The USDA is scheduled to release its weekly export sales report at 8:30 a.m. EST Thursday.

-- The USDA is due to release its monthly world supply and demand estimates report at noon EST Friday.

-- The CFTC is scheduled to release its weekly Commitments of Traders Report at 3:30 p.m. EST Friday.


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


(END) Dow Jones Newswires

03-06-24 1537ET