By Paulo Trevisani

--Corn for December delivery fell 1.4% to $5.23 3/4 a bushel on the Chicago Board of Trade on Thursday amid mixed weather forecasts and ahead of exports and production data.

--Wheat for September delivery fell 0.7% to $6.18 a bushel.

--Soybeans for November delivery fell 0.6% to $13.19 1/2 a bushel.

HIGHLIGHTS

Demand Fears Overcome: Grain prices weakened amid lingering Covid-19 threats to the global economy that offset expectations of tight supply due to unfavorable weather. Brazil's corn production estimate was cut to 93 million tons from 96 million tons in the previous forecast, but analysts believe it will drop even further because of unusually low temperatures in the South American country. In the U.S., the USDA said that ending stocks for corn would fall to 1.1 billion bushels in 2020-21, and 1.4 billion bushels in 2021-22.

Exports Ex-China: The USDA reported export sales of 122,200 tons of soybean cake and meal for delivery to Mexico during the marketing year beginning October 1. The report comes as markets worry about the absence of China as a buyer. Chinese importers have been essential to sustain demand this year but have been off in recent weeks, "leading some to question if it will cut its appetite for U.S. agriculture as it rebuilds its hog herd after devastation from African swine fever," WSJ reported.

INSIGHT

Waiting For Data: Grain markets are trending lower ahead of Friday's export sales report--which was delayed from Thursday because of last Monday's holiday-- and ahead of next week's crop report. Forecasts of hot weather with abundant moisture in some areas are taming fears of oversupply. Weaker harvesting from Brazil, due to excessive cold conditions, also feed the bulls. But continuous Covid-19 concerns around the globe threaten demand. "None of the trade estimates...are bullish," RJ O'Brien said. "Trade focus shifting from concern over supply to faltering demand," the broker said, adding that a rally is unlikely next week "with Midwest rains being reported daily."

Limited Downside: Grain prices don't have much more to lose, AgResource said, as weather conditions challenge U.S. crops and Brazilian corn production is expected to undershoot current estimates. "The dire nature of the W Midwest/Northern Plains drought implies that regular rainfall will be required through the remainder of the crop year," the research firm said, adding that grains probably don't have "a lot of additional downside price potential."

AHEAD

--The USDA will release its weekly export sales report at 8:30 a.m. ET Friday.

--The CFTC will release its weekly commitment of traders report at 3:30 p.m. ET Friday.

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

--The USDA will release its monthly supply and demand report at noon ET Monday.

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

Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

07-08-21 1525ET