By Kirk Maltais


--Corn for July delivery rose 4.1% to $5.98 a bushel on the Chicago Board of Trade on Friday, with traders liquidating short positions ahead of the long holiday weekend during which limited rainfall in growing areas is expected.

--Wheat for July delivery rose 3.9% to $6.87 a bushel.

--Soybeans for July delivery rose 2.6% to $14.65 3/4 a bushel.


HIGHLIGHTS


Long, Dry Weekend: "Little rain is in the forecast and with a 3-day weekend coming up there are plenty of concerns and positioning ahead of the weekend," said Tomm Pfitzenmaier of Summit Commodity Brokerage. "While there are occasional chances for precipitation, soil moisture has and is being depleted and at some point, fairly soon, those dry fields are going to need something more than a few scattered showers." The markets will be closed Monday in observance of the Juneteenth National Independence Day.

Cover Up: Short-covering was seen in a big way, with fund traders seen as closing the net short seen in row crops. For wheat, this behavior was tied to the weather-related strength seen in corn, said Charlie Sernatinger of Marex in a note. "Let's face it, boys and girls, this market just got way too short," he said. "We are in the process of rectifying that situation, and more air pockets on both sides of the equation are guaranteed."


INSIGHT


Buy Now, Sell Later: "Poor weather could further impact [growing] conditions, but the market has already priced in some of those effects," said Pedro Schicchi of Hedgepoint Global in a note. "Speculators have been consistent buyers due to shrinking crop prospects, but if yields are better than anticipated, further down the line when they are not as short, prices may correct downwards."

Triple Play: Exports of Russian wheat in June are expected to triple from this time last year, SovEcon said in a note. The firm projects the exports to total 2.8 million to 3.2 million metric tons. "High wheat stocks in primary agricultural regions are bolstering export activities," said Andrey Sizov of SovEcon. As of the start of May, wheat stocks in agricultural organizations were at 12 million metric tons, double the multi-year average, according to Rosstat, Sizov said. The price floor recently introduced by Russia for wheat exports may curb sales going forward, he said.


AHEAD


--The USDA and the Chicago Board of Trade will be closed in observance of Juneteenth on Monday. Both will reopen on Tuesday.

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

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


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

(END) Dow Jones Newswires

06-16-23 1540ET