By Kirk Maltais
--Corn for July delivery fell 3.2% to $5.81 1/2 a bushel, on the Chicago Board of Trade on Thursday, dropping below $6 a bushel for the first time in nearly a year after China canceled more previously-purchased orders for U.S. corn.
--Wheat for July delivery fell 2% to $6.29 1/4 a bushel.
--Soybeans for July delivery fell 0.8% to $14.03 3/4 a bushel.
HIGHLIGHTS
Cutting Back: Previously announced sales of U.S. corn exports continue to be canceled, with China withdrawing an order for 233,000 metric tons scheduled for delivery in the 2022/23 marketing year. That makes it 560,000 tons of corn exports canceled by China this week, which traders see as a reaction to the availability of cheaper exports from Brazil. As a result, CBOT corn futures fell below the $6 per bushel mark for the first time since July 2022.
April Showers: Rainfall seen throughout the week in the U.S. Corn Belt is expected to continue. In its latest forecast, agricultural research firm DTN says that scattered showers are expected in the Northern and Southern Plains, as well as the Midwest and Delta. Temperatures are expected to remain cold, which will slow the drying process for the rain and introduce new frost risks in some areas -- although for other areas the rain will help support crop development.
Threat Level Rises: Russia's talk of exiting the Black Sea Grain Initiative unless its demands are met about easing Western sanctions has been increasing, but the reaction from traders has been limited.
"I do not expect Russia to extend the corridor agreement, but would not be surprised to see talks on a 'new' proposal once it expires," said Karl Setzer of Mid-Co Commodities. "Even though oversold, the path of least resistance in the market is down, and this is bringing sellers to the table."
INSIGHT
Rising Waters: Flooding in the upper portion of the Mississippi River has closed multiple locks well into May, American Commercial Barge Line said in a note. ACBL said that two locks are expected to be closed until May 4-5, while another isn't expected to reopen until at least May 14. These closures have hit barge freight rates, sending them 10% to 16% lower than this time last year, according to data from the USDA. Lower rates may cause some companies to cut the amount of barges they have in service -- which may further effect the viability of U.S. grain exports.
Expanding Problem: This week's export sales report showed that sales of U.S. row crops sales were reduced -- as many countries canceled previously announced purchases, the USDA said. For the week ended April 20, export sales of U.S. corn totaled 400,000 metric tons for 2022/23, while soybeans totaled 311,300 tons and wheat sales totaled 357,800 tons across the 2022/23 and 2023/24 marketing years. Reductions announced by several countries for the week factored into the lower sales figures, particularly for corn. The USDA confirmed that Mexico, Colombia, Peru, China, and El Salvador all reduced planned purchases for corn.
AHEAD
--The USDA will release its monthly agricultural prices report at 3 p.m. ET Friday.
--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.
--The USDA will release its weekly grains export inspections report at 11 a.m. ET Monday.
--The USDA will release its monthly Grain Crushings report at 3 p.m. ET Monday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
04-27-23 1544ET
