By Kirk Maltais

-- Wheat for September delivery fell 4.2% to $7.48 a bushel on the Chicago Board of Trade Thursday after the USDA reported lower-than-expected export sales for U.S. wheat.

-- Corn for December delivery rose 0.5% to $6.15 a bushel.

-- Soybeans for November delivery rose 1.1% to $14.05 1/4 a bushel.

HIGHLIGHTS

Poor Showing: The USDA reported that sales for the week ended Aug. 11 totaled 207,200 metric tons, below trader forecasts.

"We had a marketing-year low in exports this [morning], at a time when we should be having our best sales of the marketing year," said Brian Hoops of Midwest Market Solutions.

Mr. Hoops told the WSJ that in addition to weak export sales, wheat futures are also being pressured by the apparent success of Ukraine's grain export corridor, with additional vessels being launched.

Next Steps: A meeting Thursday between Ukraine, Turkey and the United Nations that discussed the continuation of the Black Sea grain export corridor, among other topics, contributed to pressure on wheat futures. The Wall Street Journal reports that the meeting discussed ways to protect Ukraine's shipments, along with other security issues.

The Turkish defense ministry says that Ukraine has exported 622,000 tons of grain and other food products from the three ports covered by the export agreement, with 43 ships having sailed under the agreement.

CBOT wheat futures have generally been the strongest indicator of trader sentiment surrounding the Russia-Ukraine conflict.

Lacking a Focus: Corn and soybeans moved higher on competing factors, lacking a clear direction as some traders saw an opportunity to buy futures at more affordable levels.

"The bull is struggling to find a story while the weather forecast appears to support a mostly favorable environment for late season development in the row crops," Brian Pullam of Linn and Associates told the WSJ.

Mr. Pullam added that fund action did have influence on supporting corn and soybeans Thursday.

"You cannot dismiss those funds who like to be bargain basement pickers," he said. "Would not be surprised if we saw that again today, with some fund or funds thinking grain prices just got too cheap."

INSIGHTS

Open the Gates: This morning's export sales report from the USDA showed China being a leading customer for U.S. corn and soybeans, which has some traders wondering if China will be a larger presence in future reports.

"This morning's USDA weekly export sales report indicates a pickup of Chinese buying of U.S. corn and soybeans," said Arlan Suderman of StoneX. "I see this more as hedging their bets against the possibility of tightening global balance sheets than I do a reflection of immediate need."

The buying comes as dry conditions severely damage Chinese crops, Mr. Suderman notes.

Spreading the Wealth: Many crop-growing states have been and will continue to receive rainfall this week.

Western areas of the Corn Belt have gotten rain, and that precipitation is expected to travel eastward through the weekend, said Terry Reilly of Futures International in a note.

"The Midwest west-central areas will see rain today Saturday before moving into the east-central areas Sunday," Mr. Reilly said.

The National Weather Service forecasts that above-normal precipitation is expected in Kansas, Colorado and Missouri over the next eight to 14 days, while North Dakota and Minnesota are expected to receive below-normal rain.

AHEAD

-- The USDA is scheduled to release its monthly Cattle on Feed Report at 3 p.m. EDT Friday.

-- The CFTC is due to release its weekly commitments of traders report at 3:30 p.m. EDT Friday.

-- Deere & Co. is scheduled to release its third-quarter earnings report on Friday.

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

(END) Dow Jones Newswires

August 18, 2022 15:18 ET (19:18 GMT)

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