By Kirk Maltais


--Wheat for December delivery rose 1.6% to $8.58 1/2 a bushel on the Chicago Board of Trade Friday, returning to even for the week as traders covered shorts toward the end of the day.

--Corn for December delivery rose 0.3% to $6.79 1/4 a bushel.

--Soybeans for November delivery fell 0.4% to $14.46 a bushel.


HIGHLIGHTS


Late Move: End-of-week short-covering by traders likely lifted grain futures late in the trading session, paring losses seen earlier in the day, according to Dan Hueber of the Hueber Report. "Wheat was the only market with significant losses for the week so it stands to reason it would bounce the most." At the close of trading, wheat futures finished even for the week.

Macro View: Strength seen in the U.S. dollar is helping raise questions about what global demand for grains will look like going forward. The USD index on the ICE remains close to 20-year highs. Even for soybeans, which had the best showing in Thursday's export sales data release from the USDA, macroeconomic issues are taking a toll on demand prospects. Jack Scoville of Price Futures Group thinks that stronger U.S. dollar will help dampen demand and also cites "a lack of Chinese interest caused by the Covid lockdowns." He also says that Brazil is still offering and that "South America as a whole is expected to produce a very big crop later this year for harvest next spring."


INSIGHTS


Escaping the Worst Case: With farmers facing harvesting season in the U.S., warm weather has become beneficial for those hoping to get into fields early. Warmer temperatures are allowing finishing crops to dry up quickly, making harvesting easier, said Arlan Suderman of StoneX in a note. "It may not promote large seed size, but it does suggest that this year's crops will largely be able to finish without damage from frost, although some areas could see a close call late next week," he said. The northern plains are expected to see periods of rainfall next week, according to DTN--which may be helpful to finish soybean crops, although it will be of little benefit to corn.


Question of Demand: Grain traders are wondering what kind of squeeze global demand will be on smaller row crop supplies in the U.S. "The prospects of harvest pressure along with a carryout that is tight but adequate given the current export demand gives the bulls little incentive to buy," said Tomm Pfitzenmaier of Summit Commodity Brokerage in a note, referencing corn in particular. For row crops in general, Thursday's release of four-weeks worth of export sales data from the USDA did little to energize traders' view of world demand.


AHEAD:


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

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

--General Mills Inc. will release its first-quarter earnings report on Wednesday before the stock market opens.

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


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


(END) Dow Jones Newswires

09-16-22 1524ET