By Kirk Maltais
-- Wheat for March delivery rose 1.6% to $5.97 3/4 a bushel on the Chicago Board of Trade on Friday, with traders stepping back into net-short wheat futures even as Thursday's WASDE didn't substantially tighten the world supply/demand picture.
-- Corn for March delivery fell 0.6% to $4.30 1/2 a bushel.
-- Soybeans for March delivery fell 0.7% to $11.84 3/4 a bushel.
HIGHLIGHTS
Strong Pushback: Corn and soybeans gave into negative motion following Thursday's WASDE report from the USDA, but wheat stayed higher throughout the day. Unlike corn and soybeans, buyers appear to be stepping back into wheat, pushing the contract back up to the $6 per bushel mark.
"U.S. and global supplies remain near multiyear lows," said Doug Bergman of RCM Alternatives in a note. "Look for buyers to step in on pullbacks."
System Pressure: Corn and soybeans were under pressure for the day, driven by supportive weather for crops in Argentina.
"Weather is bearish, featuring heavy rain in Argentina on Thursday and much of next week," Joel Karlin of Ocean State Research said. "This keeps forecasts for record South American production on track."
Temperatures in Argentina are expected to be normal to above normal heading into next week, before dipping below normal, agricultural research firm DTN forecasts.
INSIGHT
Convergence Days: This year, Chinese New Year and Brazil's Carnival will occur at the same time -- a rare occasion, said AgResource in a note. As a result, volumes being traded on the CBOT are expected to be light next week.
"The celebrations will lead to diminished CBOT trade with a key buyer and Brazilian cash grain trading absent," the firm said.
Chinese New Year celebrations start tomorrow, while Brazil's Carnival begins today.
Selling Spree: Farmers are increasingly selling their 2023-24 crop into grain elevators, this after farmers had spent much of the winter holding onto their supplies in hopes of realizing higher prices.
"This is not exactly unexpected, as farmers have plenty of bills coming due next month, for rents, inputs, and in some cases, for taxes," said Charlie Sernatinger of Marex in a note.
The selling will likely add pressure to corn and soybeans prices, which are already under pressure amid a comfortable supply-demand picture issued by the USDA in its WASDE report Thursday.
AHEAD
-- 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 2022 Census of Agriculture at noon EST Tuesday.
-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EST Wednesday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
02-09-24 1532ET
