By Kirk Maltais


--Soybeans for May delivery fell 2.1%, to $14.21 1/4 a bushel, on the Chicago Board of Trade on Thursday, with funds liquidating their long positions in soybeans in the face of strong competition from Brazilian exports.

--Wheat for May delivery fell 0.8% to $6.59 1/4 a bushel.

--Corn for May delivery fell 0.4% to $6.33 a bushel.


HIGHLIGHTS


Pushing Forward: As the Brazilian soybean harvest advances towards completion, U.S. soybean exports are facing stiffer competition - as evidenced by today's low export sales reported by the USDA. CBOT soybean futures are responding by dropping until a more competitive price can be found, said Brian Hoops of Midwest Market Solutions. "Brazil harvest is advancing and the funds are holding large net long positions in soybeans and meal and look to be selling those positions down," he said - adding that a price of under $14 a bushel may cause demand to come back to U.S. soybeans.

Brighter Days: For corn, support mitigating downward momentum came from renewed export demand. This week's export sales report from the USDA showed over 3 million metric tons of corn sold, and the USDA also reported a new flash sale of 123,000 tons to China. "U.S. prices are currently very competitive with those from South America as Brazil concentrates on soybeans exports, and not corn, and U.S. demand could improve because of the price differentials," said Jack Scoville of Price Futures Group in a note.


INSIGHT


Room to Retract: Grain traders say that managed money funds are still positioned net long in soybeans, meaning that futures have further room to fall. AgResource estimates that fund traders currently hold a net 90,000 long contracts in soybeans. "Additional selling is possible until there are signs of a bottom in Brazil's fob market," said the firm in a note, estimating that spot Brazilian prices are still 75 cents a bushel below current futures prices.

Growing Acreage: Acres of corn and soybeans in the U.S. are expected to climb from last year's levels, said AgMarket.net in a forecast released today. The firm forecasts that 91.35 million acres of corn will be planted this spring, along with 87.9 million acres of soybeans. Both of these levels are higher than what farmers planted last year, which the firm attributes to relaxing input costs. The firm's outlook is also higher than the USDA's last projection at its Agricultural Outlook Forum last month. The USDA will release its annual Prospective Planting report next week.


AHEAD


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

--The USDA will release its weekly grains export inspections report at 11 a.m. ET Monday.

--Cal-Maine Foods Inc. will release its third-quarter earnings report on Tuesday.


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


(END) Dow Jones Newswires

03-23-23 1518ET