By Kirk Maltais


--Corn for December delivery fell 1.9%, to $4.95 3/4 a bushel, on the Chicago Board of Trade on Friday, with traders on the defensive ahead of a weekend with high levels of uncertainty around the Israel-Gaza conflict.

--Wheat for December delivery fell 1.6%, to $5.84 3/4 a bushel.

--Soybeans for November delivery fell 1%, to $13.03 a bushel.


HIGHLIGHTS


Volatile Times: Uncertainty about what may happen in the Israel-Gaza conflict over the weekend spurred choppiness in grain futures. "Funds are starting to look at raw material markets as a hedge against both wars," said AgResource in a note. On Thursday, short-covering pushed prices up, as traders didn't want to be caught in the wrong position in the event of new developments in either the Israel-Gaza conflict or the Russia-Ukraine war.

Weather Watch: Corn and soybeans came under pressure earlier Friday from weather forecasts showing improving weather conditions in Brazil. "Corn and beans seem to be pulling back on forecasts for better chances of rain for dry areas of Northern Brazil next week," said Brian Hoops of Midwest Market Solutions. "Corn and beans have had a good run so a correction is noted." Prior to today's session, corn has finished higher for the past two sessions, while soybeans have closed higher for the past four sessions.

Giving In: Wheat futures traded higher for most of the day, but gave in to pressure on the grains complex. Concerns about international wheat crops were a factor supporting higher futures earlier today, said Karl Setzer of Consus Agricultural Marketing. "Concerns over the size of the Argentine wheat crop are also giving the complex support today," said Setzer. The size of the Australian wheat crop is another factor traders are monitoring.


INSIGHT


Nowhere to Put Grains: A deficit in grain storage in some Farm Belt states is making some farmers more susceptible to issues with barge grain shipments on the Mississippi River, said the American Farm Bureau Federation. A deficit in storage of grains after harvesting means that farmers cannot hold on and sell at optimal conditions, opening them up to the risk of taking a loss. "Worsening conditions in this region mean product has few places left to go since it cannot be easily moved to downstream buyers," said the AFBF. "Shifting to costlier rail or trucking services often becomes a last resort." States on the river like Missouri, Kentucky, and Tennessee don't have enough storage capacity, nor do other states like Indiana and South Dakota.


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.

--Archer Daniels Midland will release its third-quarter earnings report before the stock market opens on Tuesday.


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


(END) Dow Jones Newswires

10-20-23 1556ET