By Kirk Maltais
-- Soybeans for November delivery rose 3.5% to $14.17 3/4 a bushel on the Chicago Board of Trade Thursday, with rumors of China's interest in purchasing U.S. soybean exports seen as a sign that House Speaker Pelosi's visit to Taiwan may not have lasting repercussions for trade.
-- Wheat for September delivery rose 2.5% to $7.82 1/2 a bushel.
-- Corn for December delivery rose 1.7% to $6.06 1/4 a bushel.
HIGHLIGHTS
Back in the Market?: Rumors of Chinese interest in both U.S. and South American soybean exports lifted CBOT soybean futures.
"Soybeans seem to be leading the charge on rumors of some Chinese purchases of US and Brazilian beans," Joel Karlin of Western Milling told the WSJ.
Traders say that China is in the market for six to 10 cargoes of soybeans, but it remains to be seen how much of this order is filled by U.S. product. Even so, the rumor helped support the view of traders that Mrs. Pelosi's visit to Taiwan can be put in the rear-view mirror.
Ducks in a Row: With geopolitical issues fading into the background for traders, attention now turns to the WASDE report next week, said Matt Zeller of StoneX in a note.
"The trade will be interested to see what the government produces for yields on a state-by-state basis; most analysts don't see super-impressive corn and soybean yields at this point, but far from disasters either."
The WASDE is due next Friday.
INSIGHTS
Hopeful Outlook: Next week's WASDE report is expected to be, at a minimum, neutral for CBOT grain futures.
However, many traders think the report is more likely to boost futures.
"[We] doubt that the August USDA crop report will hold any major bearish surprises," said AgResource in a note. "The CBOT has digested a considerable amount of bearish information with cash basis bids helping to underpin new-crop futures."
Estimates from StoneX this week are predicting that the USDA will reduce its projections for corn and soybean yields in next week's report with corn dropping one bushel per acre and soybeans dropping 0.2 bushels per acre.
Falling Back: Sales of old-crop grain exports fell back for the week ended July 28, the USDA reports.
The USDA said sales of corn for the 2021-22 marketing year -- last year's crop -- totaled 57,900 metric tons, down 62% from the previous week.
Soybean sales for the same marketing year were reduced by 11,000 tons, which is down 81% from the previous week.
However, sales of grains being grown now -- the 2022-23 marketing year -- were considerably stronger.
Sales of corn totaled 256,700 tons in that timeframe, while soybean sales totaled 410,600 tons and wheat sales totaled 249,900 tons.
AHEAD
-- The USDA is scheduled to release its yearly land values report at 3 p.m. EDT Friday.
-- The CFTC is due to release its weekly commitments of traders report at 3:30 p.m. EDT Friday.
-- Tyson Foods Inc. is scheduled to release its third- quarter earnings report before the stock market opens Monday.
-- The USDA is due to release its weekly grains export inspections report at 11 a.m. EDT Monday.
-- The USDA is scheduled to release its weekly crop progress report at 4 p.m. EDT Monday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
08-04-22 1613ET
