By Kirk Maltais


--Soybeans for May delivery gained 1.3% to $17.18 3/4 a bushel on the Chicago Board of Trade Wednesday, breaking the $17 per bushel level last seen in September 2012 amid expectations for strong export demand for U.S. soybeans.

--Corn for May delivery rose 0.6% to $7.57 3/4 a bushel.

--Wheat for May delivery fell 1.1% to $11.05 3/4 a bushel.


HIGHLIGHTS


Zeroing In: Soybean futures on the CBOT are closing in on all-time highs. The break past $17 per bushel marks the first time since September 2012 that the price has been above that level. The all-time high was reached on the continuous contract on September 4, 2012 at $17.68 per bushel, according to data from FactSet. Expectations for strong demand for U.S. soybean exports amid weather issues in South America along with pressure on the vegetable oil market stemming from the Russia-Ukraine war are supporting futures, said Terry Reilly of Futures International. "U.S. soybean demand is strong with good crush margins and increasing export demand," said Mr. Reilly.

War Crimps Planting Plans: Crop agencies globally are releasing their forecasts for how much the war in Ukraine will affect planting in the area. The Ukrainian agriculture minister forecasts acreage to decline to 7 million hectares, down from 15 million hectares last year. Meanwhile, the French consultant firm Strategie Grains also lowered its forecasts for Ukraine's corn exports by 12 million tons, the wheat crop by 13 million tons and the corn crop by 17 million tons. "The reduced acreage is likely to affect corn in particular, which unlike winter wheat is not sown until the spring," said Commerzbank.

Profit Takers Arrive: While a longer term conflict in Ukraine weighs on traders' minds, shorter-term profit taking was a source of pressure on CBOT grain futures. "Wheat struggled to sustain those gains, with profit taking pressing prices lower when the market failed to test the top of the recent trading ranges," said Arlan Suderman of StoneX. "Chicago, where the heaviest of the fund trading is located, led the way lower to double-digit losses."


INSIGHTS


Breaking the Mark: Ethanol inventories in the U.S. have climbed above the 26-million-barrels mark for the first time since April 2020. The EIA said that for the week ended March 11 ethanol inventories totaled 26.15 million barrels, up from 25.95 million barrels reported last week. The stockpiles are within the forecasts of analysts surveyed by Dow Jones this week - who had predicted inventories from 26 million barrels to 26.2 million barrels.

Consistency Reigns: Export sales of U.S. grains are expected to stay at least consistent from last week's figures, if not decline slightly, according to grain traders surveyed by The Wall Street Journal this week. For the week ended March 17, corn sales are expected to total between 900,000 metric tons and 1.85 million tons, down from 2.04 million tons reported last week. Meanwhile, soybean sales are expected to total between 500,000 tons and 1.8 million tons, compared to 1.73 million tons last week. Strength in grain exports is a focus of traders currently, due to stoppages in exports originating from the Black Sea.


AHEAD:


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

--The USDA will release its monthly Cattle on Feed report at 3 p.m. ET Friday.

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


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


(END) Dow Jones Newswires

03-23-22 1556ET