By Dan Molinski


--Soybeans' most-active contract that expires in March fell 0.9%, to $14.70 1/2 a bushel, on the Chicago Board of Trade on Thursday, driven by a host of issues, including Covid in China and technical-driven selling.

--Wheat's March contract managed a small gain, ending 0.1% higher at $7.46 1/2 a bushel.

--Corn for March fell 0.2% to $6.52 1/2 a bushel.


HIGHLIGHTS


Bearish Beans: "Bean charts took out yesterday's low and the parabolic sellstops, with all momentum down, the meal took out yesterday's low with all momentum down, and the oil made an outside day lower, taking out its parabolic sellstops, with stochastics down," said Marex Capital in a note. "Between the weather, La Niña breaking down, low crusher run times, Chinese Covid, and Asian countries having problems coming up with dolleros to buy beans, everything turned bearish this week in the beans."

Wheat Oversold: Wheat futures finally managed to rise slightly Thursday after some relatively steep losses in previous sessions that were attributed to mild weather, healthy supplies and broader-market selling. "Wheat flushed to the downside Wednesday with the market oversold after the losses," said Doug Bergman at RCM Alternatives. WTI crude-oil prices rebounded some today after dropping 9.2% during the first two trading days of 2023, and that may have also helped wheat prices to bump slightly higher on Thursday.


INSIGHT


Rough Beginning: Overall, 2023 has so far seen more selling than buying in grains markets. "Wheat, corn and soybeans have had an ugly start to 2023, I blame oil prices as we are off to the worst start in oil going back 30 years," said John Payne of Hedgepoint Global in a research note. "If the energy markets are weak, I expect corn and beans to struggle to rally. I think we are seeing new-year adjusting, nothing fundamental has changed from two weeks ago when beans were making their run higher."


AHEAD


--The USDA will release its weekly export sales report at 8:30 a.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, Jan. 9.

--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday, Jan. 11.


Write to Dan Molinski at dan.molinski@wsj.com


(END) Dow Jones Newswires

01-05-23 1458ET