By Kirk Maltais


-- Soybeans for July delivery fell 1.8% to $16.88 a bushel on the Chicago Board of Trade Friday, with traders opting to lock in profits ahead of a wet weekend forecast in the U.S. Corn Belt.

-- Corn for July delivery fell 0.8% to $7.89 a bushel.

-- Wheat for July delivery fell 0.1% to $10.75 1/4 a bushel.


HIGHLIGHTS


Shrugging Off Sales: After grain futures surged toward all-time records earlier this week, traders appeared keen to lock in profits instead of reacting to seemingly supportive news such as new flash sales of U.S. grains to China and Mexico announced earlier Friday.

"I would suggest profit-taking after USDA's confirmation of a third grouping of Chinese buys," Rich Nelson of Allendale Inc. told WSJ.

Traders have been watching for indications of returning Chinese demand after Covid-19 lockdowns.


April Showers: Precipitation is expected in crop-growing areas across the U.S. Midwest, according to Friday's weather forecast from DTN. The firm says western areas are expected to receive scattered showers through Sunday, with conditions turning dry by Monday.

For farmers grappling with drought, the rainfall is welcome.

Rainfall is also forecast in the eastern Corn Belt, although these areas have experienced above-normal rainfall in recent months, which in turn has slowed farmers getting out to their fields to plant.


INSIGHTS


Momentum Building: The USDA said Friday morning that China and Mexico purchased more flash sales of U.S. corn and soybeans.

The government confirms that China purchased 1.35 million metric tons of corn -- 735,000 tons for delivery in the 2021-22 marketing year and 612,000 tons for delivery in 2022-23. Additionally, 281,000 tons of corn were sold to Mexico across both marketing years, as well as 144,000 tons of soybeans.

Traders speculate more export sales of U.S. crops to China are in the pipeline.


Drastic Measures: CBOT soybean futures saw an uptick in pre-market trading this morning in reaction to Indonesia banning palm oil exports as of the end of the month.

The news didn't produce a lasting move to soybeans for the day, but may in upcoming sessions as traders digest the implications of the ban. It comes as Indonesia experiences disruptions in its edible oil supply. Government officials have yet to produce further details on the ban.

"The news produced waves of buying in world vegoil futures markets as the Indonesian export ban will worsen already tight world stocks," said AgResource in a note.


AHEAD


-- The USDA is scheduled to release its weekly grains export inspections report at 11 a.m. EDT Monday.

-- The USDA is due to release its weekly crop progress report at 4 p.m. EDT Monday.

-- Archer Daniels Midland is scheduled to release its first-quarter earnings before the stock market opens Tuesday.

-- Ethanol producer Valero Energy Corp. is due to release its first-quarter earnings before the stock market opens Tuesday.


Write to Kirk Maltais at kirk.maltais@wsj.com


(END) Dow Jones Newswires

04-22-22 1536ET