By Dan Molinski
--Soybeans' most-active contract fell 0.9% to $14.67 1/2 a bushel Thursday on the Chicago Board of Trade, cut down by broader-market risk aversion and so-so export sales.
--Wheat dropped 0.7% to $7.62 1/4 a bushel
--Corn declined 0.3% to $6.60 1/2 a bushel.
HIGHLIGHTS
Exports Fair to Midland: Soybeans led across-the-board declines in agricultural commodities that began the day lower and stayed that way after weekly U.S. export sales barely met expectations, with soybeans and corn sales both coming in at the low end of forecasted ranges. The grains market also faced off against broad-based risk aversion as U.S. stock markets fell sharply and crude-oil prices declined. Soybeans' losses were also pinned on more localized factors, said Terry Reilly at Futures International. "The soybean complex [was] under pressure led by soybean oil but unfavorable weather for the U.S. and Argentina limited losses for soybean meal and soybeans," he said.
Ethanol Down, Not Out: Production of ethanol is at a three-week low in the U.S., but Tomm Pfitzenmaier of Summit Commodity Brokerage says the output levels aren't worrisome, at least not yet. "U.S. ethanol production last week declined to 303 million gallons from 312 million gallons the week prior, which was 2.1% below last year's same-week production of 309 million gallons and the lowest in three weeks, but still held at the estimated 302 million gallon/week average we see as needed through the end of August to reach the USDA's 5.275 bil bu corn for ethanol usage estimate," he said. "Over the last four weeks, U.S. ethanol production has run rather consistently slightly lower than year ago levels ... However, with ethanol margins remaining under pressure and little sign of overall improving gasoline demand, we see risk of further declines in ethanol production in the weeks ahead."
INSIGHTS
Corn Demand Doldrums: Corn futures fell along with other grains amid broader, bearish themes for trading markets, but corn-specific issues are also holding back the commodity, says Jack Scoville at Price Futures. "Demand for U.S. Corn remains muted and forecasts for only light rains in southern Brazil and Argentina were seen instead of the bigger rains forecast the previous day,"he said. "Brazil has been hanging on but Argentina has suffered through some extreme drought. Corn prices are still hurt by a general lack of demand." He said a lack of farmers selling corn provides some price support, but weak demand overall for U.S. Corn "remains a big problem" for the market, and "there are increasing concerns about demand with the Chinese economic problems caused by the lockdowns creating the possibility of less demand."
AHEAD
--The USDA is scheduled to release its monthly Cold Storage Report at 3 p.m. EST Thursday.
--The USDA is due to release its monthly livestock slaughter report at 3 p.m. EST Thursday.
Write to Dan Molinski at dan.molinski@wsj.com
(END) Dow Jones Newswires
12-22-22 1514ET
