By Kirk Maltais


--Wheat for July delivery rose 3%, to $10.76 1/2 a bushel, on the Chicago Board of Trade on Wednesday, in response to India mulling over an export ban amid a diminished wheat crop.

--Soybeans for July delivery rose 0.6%, to $16.40 1/2 a bushel.

--Corn for July delivery rose 0.2%, to $7.94 1/4 a bushel.


HIGHLIGHTS


The Heat is On: The government of India is considering restricting exports of wheat as heat is crippling the crop there--which has sent CBOT wheat higher today. Talks of restricting Indian exports come as its agricultural ministry reduced its outlook for the country's crop--making it 105 million metric tons versus 111 million tons projected previously. "A wheat crop less than 100 million tons would force India to become a significant importer in the world market at a time when Black Sea wheat exports are severely restricted by the Russian war against Ukraine," said AgResource in a note. U.S. crops are also facing challenging conditions, with spring wheat planting slow and winter wheat condition poor, according to USDA data.

Sowing Doubts: Corn futures were supported today from the strong surge in wheat. For corn, the focus is on if U.S. weather conditions will allow farmers to catch up on delayed planting--before late planting creates palpable cuts to crop yields. "It is hard to see corn able to hit the USDA's trend line yield of 181 [bushels per acre] with so much corn still left to plant," said Craig Turner of Daniels Trading in a note. Mr. Turner adds that next week's WASDE report will spur more volatility into corn trading, depending on what the USDA forecasts for new crop production.


INSIGHTS


Lingering Guest: Current forecasts are calling for the La Niña climate system is expected to stay around in the Pacific over the summer, which is providing support for grain futures today. "This is a classic set up for a problematic summer in the Midwest, although it doesn't guarantee such," said Arlan Suderman of StoneX in a note. In its last update in April, the Climate Prediction Center forecast gave the current La Niña a nearly 60% chance of persisting through the summer. Excessive rainfall in some areas has made planting of crops like corn and soybeans difficult this spring, traders say.

Inching Up: Daily ethanol production in the U.S. rose this week, climbing for the second consecutive week after taking a tumble. In its latest weekly report, the EIA said that U.S. ethanol daily production rose to a rate of 969,000 barrels per day for the week ended April 29, up from 963,000 barrels predicted last week. This week's figure falls within the predictions of analysts surveyed by Dow Jones this week, who had forecast a range of 952,000 barrels per day to 973,000 barrels per day. Ethanol stocks edged lower for the week--dropping to 23.89 million barrels versus 23.97 million barrels reported last week.


AHEAD:

--Ingredion Inc. will release its first quarter earnings report at 7 a.m. ET Thursday.

--Zoetis Inc. will release its first quarter earnings report before the stock market opens Thursday.

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


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


(END) Dow Jones Newswires

05-04-22 1515ET