By Kirk Maltais
-- Wheat delivery fell 1.5% to $5.32 1/4 a bushel on the Chicago Board of Trade on Thursday, sliding amid improving winter wheat conditions and as traders look for a bottom for prices.
-- Corn for March delivery rose 0.7% to $4.40 1/2 a bushel.
-- Soybeans for January delivery rose 1.2% to $9.63 a bushel.
HIGHLIGHTS
Looking for the Bottom: Wheat neared the year-low close of $5.24 from July, according to FactSet data.
Fueling the drop is that U.S. winter wheat is receiving better weather than it had at the start of its growing season, adding pressure to futures, said Jack Scoville of Price Futures Group in a note.
"The growing conditions in the U.S. are very good," he said.
Covering the Shorts: Soybeans reversed their steep tumble from yesterday, with traders taking the opportunity to buy into soybeans after they shed value due to a strong Brazilian crop.
"Beans rallied back from yesterday's thrashing on short covering," said Charlie Sernatinger of Marex in a note.
Thursday's uptick ended a 4-day skid, but further trader demand may be hinged on better export demand from China.
The USDA did report a new flash export sale Thursday, to unknown destinations.
INSIGHT
Change in Sentiment: The commodities complex is feeling the pressure after Wednesday's decision by the Fed to cut interest rates by 25 basis points, and signals from Chair Jerome Powell that the Fed is now ready to take a break from easing.
Metals are feeling the most pressure as the dollar index strengthens to the highest level since November 2022 while treasury yields also climb, this while agricultural futures also under pressure, says ING Economics in a note.
On the High Side: Exports of U.S. wheat for the week ended Dec. 12 landed on the high end of estimates from analysts surveyed by The Wall Street Journal this week, while corn and soybeans sagged versus previous weeks.
The USDA said Thursday that wheat export sales totaled 457,900 metric tons for the 2024-25 marketing year, up 58% from the previous week and up 16% from the average of the prior four weeks. Analysts surveyed this week forecast sales to land between 240,000 tons and 550,000 tons.
The Philippines were the leading buyer of U.S. wheat for the week, while Mexico was the top buyer of corn and China was the leading buyer of soybeans.
AHEAD
-- The USDA is scheduled to release its monthly Cattle on Feed Report at 3 p.m. EST Friday.
-- The CFTC is due to release its weekly Commitments of Traders Report at 3:30 p.m. EST Friday.
-- The USDA is scheduled to release its weekly grains export inspections report at 11 a.m. EST Monday.
-- The USDA is due to release its monthly Cold Storage Report at 3 p.m. EST Monday.
-- The USDA is scheduled to release its quarterly Hogs and Pigs Report at 3 p.m. EST Monday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
12-19-24 1609ET