By Kirk Maltais


--Wheat for July delivery fell 4.3% to $10.41 1/4 a bushel on the Chicago Board of Trade Wednesday with fund traders leery about the existing risk premium on wheat as Egypt elicited many offers for its most recent grain tender.

--Corn for July delivery fell 3% to $7.31 1/4 a bushel.

--Soybeans for July delivery rose 0.4% to $16.90 1/4 a bushel.


HIGHLIGHTS


What Shortage?: As traders continue to debate whether a deal will be reached to allow Ukrainian grain shipments to leave Black Sea ports, other indicators suggest that the availability of global wheat exports isn't as scarce as previously believed. "Apparently there is no shortage of wheat in the world, as 16 offers were garnered," said Charlie Sernatinger of ED&F Man Capital in a note regarding Egypt's latest tender. Egypt is among the biggest buyers of wheat exports, making its ability to procure wheat a key indicator for the world supply-demand picture.

Making Progress: The USDA's Crop Progress report on Tuesday showed that national planting progress for corn and soybeans has mostly caught up to the usual pace - with corn planting now 86% complete, versus a 5-year average of 87%. Soybeans are now 66% complete, versus a 5-year average pace of 67%. However, planting in the Northern Plains continues to be well behind the normal pace, with corn in North Dakota only 56% complete and soybeans only 23% done - both well below the usual pace of 83% and 70%, respectively. "There will definitely be some acreage reductions from the March Prospective Planting report, but how much is the question," said Richard Buttenshaw of Marex in a note.

Finding Support: Soybean futures on the CBOT stayed afloat, even as corn and wheat futures steeply sold off again. Supporting the contract was the USDA's announcement this morning that 132,000 metric tons of U.S. soybeans have been sold to China - half for delivery in the 2021/22 marketing year and the other half for delivery the next marketing year. The new sales come as U.S. soybeans have become more attractive on the world stage. "Argentina soybean offers have disappeared, while Brazilian offers have become increasingly difficult to find August onward," said AgResource in a note this afternoon.


INSIGHTS


Shades of Summer: The downward momentum in grains followed the USDA's weekly Crop Progress report showing that planting has mostly returned to the normal pace - making the summer growing season the next source for bullish or bearish market news. "Recent rains will be beneficial for crop development," said Craig Turner of Daniels Trading in a note. "Late planting could be a drag on yields but only time will tell. Seasonally, only a hot and dry summer can rally grains at this point."

Steady Eddy: U.S. daily ethanol production and inventories are expected to stay relatively close to levels reported by the EIA last week, according to analysts surveyed by Dow Jones. They predict daily production to be anywhere from 1 million barrels per day to 1.028 million barrels per day, versus 1.014 million barrels reported last week. Meanwhile, total stocks are expected to be anywhere from 23.51 million barrels to 23.81 million barrels - versus 23.71 million barrels reported last week.


AHEAD:


-Hormel Foods Corp. will release its second-quarter earnings report before the stock market opens Thursday.

--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Thursday.

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

06-01-22 1539ET