By Kirk Maltais

-- Wheat for September delivery fell 1.9% to $5.01 1/4 a bushel on the Chicago Board of Trade Thursday on improving Russian yields and consistently good U.S. weather.

--Soybeans for November delivery fell 0.1% to $8.78 a bushel.

--Corn for December delivery rose 0.2% to $3.23 3/4 a bushel.

HIGHLIGHTS

Downhill Slide: After a brief respite yesterday, wheat futures fell for the third CBOT trading session of the last four. Wheat futures slid to the lowest levels since July 8. News of larger-than-expected wheat crops out of areas like Russia have been pressuring wheat. "The market is a bit oversold but the short-term trend is down," RJO Futures said. "The trend may continue down without lots of help from outside markets."

How Big is Big?: Grains traders are getting their books in order ahead of next week's WASDE report, said AgResource. "Traders are discussing how big is big in terms of U.S. corn/soy yields, but the bears would like to see a soaking rain across Iowa before they lean into a larger net short corn position," says the firm. Corn and soybean futures are showing slight moves in trading Thursday. The monthly WASDE report will be released by the USDA next Wednesday at noon eastern time.

INSIGHTS

Sunny Disposition: Weather in crop-growing areas of the U.S. has supported corn and soybeans. "Overall sentiment remains bearish due to favorable U.S. weather conditions, suggesting ample corn and soybean crops to come," said AgriTel. According to agricultural research firm DTN, "most areas are in favorable conditions," for developing corn and soybean crops in the Midwest.

Coming Up Short: U.S. agricultural exports to China jumped in June, but overall, China is still behind on the level of buying it needs to be at in order to meet its phase one trade deal obligations, said Panjiva, the supply chain research unit of S&P Global Market Intelligence. US agricultural exports to China in June are up 156.9% compared to 2017 - the baseline year for the deal's commitments. However, it's still not enough, says the firm. "Both energy and agriculture have only increased recently however and year-to-date both are still well behind schedule," Panjiva said.

Wilted Hopes: Crop seed suppliers like Corteva headed into the spring with the wind at their backs as farmers planned for 97 million acres of corn -- typically seed makers' most profitable crop. But the pandemic and other factors cooled farmers on that plan, said Corteva CEO Jim Collins, as corn prices fell. Farmers ultimately planted 92 million acres of corn, which helped lead to a 6% decline in Corteva's 2Q North American seed sales. For the former DowDuPont unit, every 1 million acres of corn planted represents $20 million in operating profit.

AHEAD:

--The CFTC releases its weekly commitment of traders report at 3:30 p.m. ET Friday.

--The USDA releases its weekly grain export inspections data at 11 a.m. ET Monday.

--The USDA releases its weekly crop progress report for the 2020/21 crop at 4 p.m. ET Monday.

Jacob Bunge contributed to this article.

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

(END) Dow Jones Newswires

August 06, 2020 15:57 ET (19:57 GMT)

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