By Kirk Maltais
-- Wheat for May delivery rose 1.8% to $5.38 1/2 a bushel on the Chicago Board of Trade on Friday, with short covering coming after the WASDE report contained little in the way of surprises.
-- Soybeans for May delivery rose 1.6% to $11.85 a bushel.
-- Corn for May delivery rose 0.4% to $4.40 a bushel.
HIGHLIGHTS
Technical Treatment: Following the USDA's WASDE report, which showed less-than-expected changes to South American production but larger reductions to global ending stocks, grain traders opted to cover some of their lingering short positions on the grains complex with wheat leading the way.
"Wheat is catching a bid post report, though it is more likely that what we're seeing is 'corrective buying,' after hitting oversold conditions earlier in the week," said Jake Hanley of Teucrium Trading.
With Restraints: The estimates in the WASDE report didn't introduce much volatility into the day's trading, with minimal surprises and the estimates mostly priced into futures ahead of time.
"No big drama, no big surprises," Naomi Blohm of Total Farm Marketing said.
Analysts this week speculated that news of higher supplies and lower demand had been largely priced into futures.
INSIGHT
Early Start: Some U.S. farmers are getting their crop into the ground now, taking advantage of unseasonably warm conditions and healthy soil temperature. While it has been dry, many farmers believe conditions are optimal to start planting even before the date that crop insurance kicks in, on April 1.
This stance had some traders selling into the sizable short position seen on the market before the WASDE was released at noon, Daniel Flynn said in a note.
Another Cancellation: This morning, the USDA announced a second cancellation of previously sold wheat to China for delivery in this marketing year, following a cancellation confirmed Thursday.
While grain traders anticipated this, buyers like China and Egypt appear to be running into higher prices for wheat than initially expected, said AgResource in a note.
"A new growing season is at hand and Mother Nature soon has the deciding price vote," said the firm.
AHEAD
-- The USDA is scheduled to release its weekly grains export inspections report at 11 a.m. EDT Monday.
-- Archer Daniels Midland is due to release its fourth-quarter earnings report before the stock market opens Tuesday.
-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EDT Wednesday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
03-08-24 1520ET
