By Kirk Maltais
--Corn for December delivery fell 1.8%, to $4.88 a bushel, on the Chicago Board of Trade on Friday, after the USDA's WASDE report generally showed forecasts in line with those of analysts.
--Wheat for September delivery fell 1.7%, to $6.26 1/4 a bushel.
--Soybeans for November delivery fell 0.9%, to $13.07 1/4 a bushel.
HIGHLIGHTS
As Expected: The initial impact of the USDA's WASDE report was limited, with analyst predictions being mostly in line with the USDA's August estimates. "No massive surprises here, we came in within spitting distance of the average guesses," said Charlie Sernatinger of Marex in a note. "No one is going to whine hard about this one, from here on in, it is all about preparing for the September report with the first objective survey."
Back to Basics: CBOT grain futures came under pressure to close out the trading day, with the muted impact of today's WASDE report giving way to the sentiment that good crop weather will turn decreased yields around. "Futures pulled back on the hope that August Central U.S. rainfall will lift yield estimates in September," said AgResource in a note. The firm adds that additional rainfall is expected throughout the rest of the month, running counter to some forecasts yesterday that called for heat to return to growing areas.
INSIGHT
Offsetting Cuts: While the USDA cut its production outlook for U.S. row crops in today's WASDE slightly more than expected by analysts, the agency also cut its outlook for crop demand, offsetting the tightening in supply that would come from reduced production. "The USDA was a little more aggressive than expected with their production cuts, but the demand cuts threw a wet blanket on those revisions," said Doug Bergman of RCM Alternatives in a note.
Delayed Reaction: The lack of any standout surprises in today's report staved off any volatility that traders were prepared for. "Pretty quiet report I thought overall--certainly could have been much more bearish, but the USDA remained very conservative, which shouldn't be a surprise," said Brian Hoops of Midwest Market Solutions. Many analysts believe that the USDA doesn't typically make large changes in its monthly reports, preferring slow incremental changes. Selling escalated late in the day, with traders reacting to a wetter weather outlook.
AHEAD
--The USDA will release its weekly grains export inspections report at 11 a.m. ET Monday.
--The USDA will release its weekly crop progress report at 4 p.m. ET Monday.
--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
08-11-23 1512ET
