By Paulo Trevisani

--Wheat for September delivery rose 2.7% to $6.72 a bushel on the Chicago Board of Trade Thursday after the USDA reported strong weekly export sales.

--Corn for December delivery fell 0.5% to $5.56 1/4 a bushel.

--Soybeans for November delivery fell 0.2% to $13.80 a bushel.

HIGHLIGHTS

Foreign Appetite: Wheat rose on CBOT as the USDA reported net export sales of 424,700 metric tons for the 2021/2022 marketing year in the week ending July 8, a 46% increase from the previous week and 44% higher than the prior four-week average. The figure was at the higher end of expectations in a WSJ trader survey that estimated exports between 200K and 450K tons.

Chasing Rain: Grain futures weakened as moisture increased in Iowa and Illinois, but forecasts of dry weather provide support for prices. "The overnight trade has had difficulty in whether it should price in the 'green blobs' on the radar or the forecast of coming extreme heat/dryness," AgResource said. "Our bet is that by the end of today's session, it will be the coming extreme heat and dryness for the Canadian Prairies, Northern US Plains and NW Midwest."

INSIGHT

Bullish Patterns: Weather patterns are a tailwind for corn futures, Price Futures said, adding to bullish news of a lower Brazil crop and logistics problems in Argentina. There is some moisture going around the farm belt, but the extended forecast calls for dry weather depressing supplies. "Weather and yields are the story now," the research firm says. Markets are upset, however, by disappointing exports, with the USDA reporting a 20% weekly decline. "We are hoping for exports to pick up," Price Future said.

Strong Corn: Despite Thursday's loses, corn futures still trade above pre-pandemic levels. Expectations of dry weather remain mostly bullish for prices, calling for abnormally high temperatures and dryness weighing down on yield, not only in the U.S. buy also in Brazil. The latest USDA report on exports gave bulls some pause, as last week's sales fell more than expected, but some traders expect foreign sales to pick up. 


 
AHEAD

--Railroad provider Kansas City Southern will release its second-quarter earnings before the stock market opens on 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 weekly crop progress report at 4 p.m. ET Monday.

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

(END) Dow Jones Newswires

07-15-21 1507ET