By Kirk Maltais
-- Corn for December delivery fell 1.3% to $5.46 a bushel on the Chicago Board of Trade on Thursday, with forecasts predicting wetter weather in the Corn Belt over the weekend.
-- Soybeans for November delivery fell 0.3% to $14.03 3/4 a bushel.
-- Wheat futures for September delivery were virtually unchanged at $7.27 1/2 a bushel.
HIGHLIGHTS
Wet Turn: The drop seen in CBOT grain futures Thursday was linked to a wetter weather outlook for the next few days.
Agricultural research firm DTN forecasts isolated and scattered showers in growing areas over the weekend. Although weather conditions are expected to turn back toward hot and dry next week, the addition of more precipitation to the weather forecast is spurring some trader selling, specifically for corn.
"An over 17% rally over the last five days has moved it into an overbought position, so it only requires a hint of a change in the weather to make prices set back," said Dan Hueber of the Hueber Report.
Eyes Overseas: Grain traders spent the session watching for any new headlines from the Russia-Ukraine war, with bombing of Ukrainian ports the reason for a big surge in wheat futures Wednesday.
"No one knows what the next move on the war will be, but we have gone from being relatively blasé about supply vulnerability to extremely nervous," said Charlie Sernatinger of Marex in a note.
INSIGHT
Change of Focus: Besides the implications of Russia's exit from the Black Sea Grain Initiative, traders are also mulling India's ban on non-basmati rice exports, which is expected to deprive several poorer countries of a key resource, one that will be difficult to replace.
"Geopolitics has reared its ugly head (again), much like it did in the spring of 2022 following the Russian invasion of Ukraine," said AgResource in a note.
Equipment Shortage: A shortage in available chassis in the Midwest may slow down the flow of grains leaving there, the USDA said in its latest weekly Grain Transportation Report. The government says intermodal equipment providers in the Chicago region are in the process of making repairs to these chassis, which are a necessary device needed to move shipping containers on roads.
However, companies are reporting a shortage of available mechanics to do the needed work on these devices.
"Containerized agricultural exports sourced in our nation's heartland -- such as grain, soybeans, and meat products -- rely on chassis for movement to port regions," the USDA says.
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.
-- The USDA is scheduled to release its weekly grains export inspections report at 11 a.m. EDT Monday.
-- The USDA is due to release its weekly crop progress report at 4 p.m. EDT Monday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
07-20-23 1554ET
