By Paulo Trevisani


--Wheat for March delivery dived 2% to $7.97 a bushel on the Chicago Board of Trade Friday amid fears that global demand will weaken as China struggles to curtail Covid-19.

--Corn for December delivery rose 0.7% to $6.68.

--Soybeans for January delivery closed slightly higher, at $14.36 1/4 a bushel.


HIGHLIGHTS


Domestic Support: Wheat futures plummeted toward the end of Friday's shortened session, while corn and soybean futures extended preholiday gains. Corn led the uptick. "The dry weather in Argentina is certainly something to keep an eye on, but is not critical at this point and the lack of export demand continues," Summit's Tomm Pfitzenmaier said in a report about corn. "The export side of demand continues to be negative, but strength in the domestic markets has been supportive."

Export Sales: Weekly exports of U.S. grain fell within the range of analysts' forecasts in a WSJ survey. For the week ended Nov. 17, the USDA said corn sales for the 2022-23 marketing year reached 1.85 million metric tons, soybeans hit 690,100 tons, and wheat sold 511,800 tons. Mexico and China were major destinations for those export sales. The report, which is usually released on Thursdays, was delayed this week due to Thanksgiving.


INSIGHT


Covid Threat: China's struggle with resilient Covid is having an "adverse impact on ag import demand," AgResource said in a report. "China has nearly finished its US soybean buying program, but South American soybean imports could be adversely impacted by China's broadening Covid outbreak," the research firm said. AgResource said it "maintains a CBOT stance of selling strong rallies amid slowing US export demand and favorable weather for a record large Brazilian soy crop."

Resilient Prices: Grain prices are likely to keep experiencing upward pressure next year as dry soil in North America threatens crops, BMO's Aaron Goertzen said in a report. "It's not too late for soil moisture to be replenished before the spring planting season, but regions that have faced multiple years of drought will require above-average precipitation to be fully rehydrated," he said, adding that next year crop supplies are likely to remain relatively tight, and prices stubbornly high. Goertzen added, "while it is entirely possible that peak food inflation is behind us, outright relief may not be in the cards any time soon."


AHEAD


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

-The CFTC will release its weekly commitment of traders report at 3:30 p.m. ET Monday.

-The USDA will release its weekly crop progress report at 4 p.m. ET Monday.

-Hormel Foods Corp. will release its Q4 earnings report before the stock market opens on Wednesday.

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

-The USDA will release its monthly agricultural prices report at 3 p.m. ET Wednesday.


Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

11-25-22 1541ET