By Kirk Maltais


--Wheat for March delivery fell 1.2%, to $7.42 1/2 a bushel, on the Chicago Board of Trade on Wednesday, with fund buyers wrapping up their post-USDA report purchasing.

--Soybeans for March delivery fell 1% to $15.24 1/2 a bushel.

--Corn for March delivery fell 0.6% to $6.81 1/4 a bushel.


HIGHLIGHTS


Taking a Time-Out: The momentum for grain futures that originated from last week's USDA reports finally dried up, with CBOT row crop futures turning lower in midday trading. Multiple factors are responsible for the pull down, including a wetter forecast for South America and more grain exports by countries such as China and Russia, particularly for wheat. "The path of least resistance seems to be lower," Donna Hughes of StoneX told the WSJ.

It's a Wash: Rainfall is expected in Argentina's crop belt beginning tomorrow, said AgResource in a note, with totals seen as much as four inches. "Such rain is near to above normal, the first time that such a statement can be made in the 2022/23 crop year," said the firm. Brazil is also expected to receive rainfall, with the outlook there "favorable for record production." The weather forecast in South America has been a key factor moving CBOT grain futures in recent weeks.


INSIGHT


Abundance of Caution: U.S. farmers see reasons to be optimistic that a strong 2022 for crop prices will continue into the 2023 growing season, although geopolitics and the wider economy could put more pressure on their bottom lines. "Weather and markets will be the topic for 2023," says Brent Judisch, a farmer in Cedar Falls, Iowa. "I think crop prices and interest rates will slow down the farm economy as we move towards the end of the year," he told the WSJ. "But with all the unrest in Russia and Ukraine and with lingering weather crop prices are not certain to retract in the near future."

Fuel in the Tank: Daily ethanol production in the U.S. is expected to continue to bounce back in tomorrow's report from the EIA, this after finding a low last seen in February 2021 two weeks ago. Analysts surveyed by Dow Jones are forecasting production to land anywhere from 920,000 barrels a day to 993,000 barrels a day. That's versus 943,000 barrels a day last week, and 844,000 barrels a day the week prior.


AHEAD


--The EIA will release its weekly ethanol production and stocks report at 11 a.m. ET Thursday.

--The USDA will release its monthly livestock slaughter report at 3 p.m. ET Thursday.

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

--The USDA will release its monthly Cattle on Feed report at 3 p.m. ET Friday.

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


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


(END) Dow Jones Newswires

01-18-23 1546ET