-- Corn for December delivery fell 3.5% to $4.01 1/2 a bushel on the Chicago Board of Trade Wednesday as traders hedged their bets and adopted a cautious stance ahead of next week's general election.
-- Soybeans for January delivery fell 2% to $10.54 3/4 a bushel.
-- Wheat for December delivery fell 1.1% to $6.08 3/4 a bushel.
HIGHLIGHTS
Hands Off: Grain futures trading on the CBOT fell Wednesday, with traders locking in gains from recent rallies, "as fund managers reduce their market risk ahead of next week's U.S. election," said AgResource. The firm also pointed to diminished demand from China and improved world weather forecasts as factors pressuring grains.
The risk-off mentality can be seen in a sharp uptick in the U.S. dollar, with the dollar index trading on the Intercontinental Exchange up 0.5% Wednesday.
Waterworks: Wheat futures slipped Wednesday as rainfall continues in the U.S. Plains, helping winter wheat crops become established.
"The U.S. is getting snow and rain over Oklahoma and Texas today, the last day of scheduled moisture for the next couple of weeks," said Charlie Sernatinger of ED&F Man Capital.
INSIGHTS
Winnowing the Pile: Data released by the EIA Wednesday show ethanol inventories in the U.S. continue to drop, falling another 120,000 barrels, while weekly production inched higher this week, rising 28,000 barrels to 941,000 barrels per day.
A rise in coronavirus infections could impact fuel demand, cutting into the amount of corn needed to make ethanol.
"The fear is that the increase in Covid infections in the U.S. will hurt energy demand," said Tomm Pfitzenmaier of Summit Commodity Brokerage.
On Leave: The USDA has reported a number of different flash sales of grain exports this week, reporting Wednesday that 207,000 metric tons of U.S. corn were sold to South Korea, 110,000 tons of soybeans were sold to Egypt, and 120,000 tons were sold to unknown destinations.
However, traders are noticing that new sales to China haven't been announced this week.
"China has remained rather subdued with new business," said Dan Hueber of the Hueber Report.
The lack of confirmation of new Chinese buying may become a source of pressure for grains futures as the week continues.
Ready for Round Two: The global food industry's first go-round with Covid-19 has helped it better prepare for the latest wave of infections, said Greg Heckman, chief executive of agribusiness company Bunge. "As we've been through the cycle once, people adjust their supply chains," Heckman says on Bunge's quarterly conference call. "The shift won't be as dramatic, and people will be prepared."
Fast-food restaurants rebounded faster than Bunge anticipated, and packaged food demand has remained very strong, he said.
AHEAD:
-- The USDA is scheduled to release its latest weekly export sales numbers at 8:30 a.m. EDT Thursday.
-- Archer Daniels Midland is due to release its third-quarter earnings report after the stock market closes Thursday.
-- The USDA is scheduled to release its monthly agricultural prices report at 3 p.m. EDT Friday.
-- The CFTC is due to release its weekly commitments of traders report at 3:30 p.m. EDT Friday.
-- Jacob Bunge contributed to this article.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
10-28-20 1535ET
