By Kirk Maltais


--Soybeans for July delivery fell 2.1%, to $13.04 3/4 a bushel, on the Chicago Board of Trade on Friday, after negotiators decided to pause their talks on the debt ceiling.

--Wheat for July delivery fell 1.1% to $6.05 1/2 a bushel.

--Corn for July delivery rose 0.2% to $5.58 1/2 a bushel.


HIGHLIGHTS


Pressing Pause: After spending much of the day trading higher, news out of Washington D.C. that there was a halt in the debt ceiling negotiations renewed selling among traders. Friday's choppiness looks to extend into future sessions, AgResource said in a note. "Wide swinging markets lie ahead," the firm said.

Absence of Reason: The drop in futures was also due in part to traders being unable to find any good reason for grains to be supported. "It could be an outside market issue," said Rich Nelson of Allendale. "I would also suggest this market is looking for any reason to stabilize and so far just can't find a reason." The retreat in futures puts soybeans close to dropping below the $13 a bushel mark for the first time since December 2021, and wheat to falling below $6 a bushel for the first time since December 2020.


INSIGHT


Holding Tight: Higher futures seen earlier in the trading session were due in part to the reluctance of farmers to lock in prices for their new crops. "Most producers are in the fields and are not even worried about the market," said Jack Scoville of the Price Futures Group in a note. While conditions for planting have been ideal in many areas of the U.S. Corn Belt, the possibility of a strong El Nino this summer is seen as a potential threat to the health of crops.

Data Dump: While deal making in the U.S. and Russia has been a key theme for commodities this week, analysts expect price movements across the space next week to be driven by fresh economic data. "Next week, May flash PMIs for the U.S. and the EU on Tuesday should give a steer on how economic activity is holding up in those regions," Capital Economics said in a note. This and other data will give indications as to whether or not inflation-related pressure is easing, which may influence how the U.S. dollar index moves, the firm said.


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.

--The USDA will release its monthly Cold Storage report at 3 p.m. ET Wednesday.

--The USDA will release its bi-annual Farm Labor report at 3 p.m. ET.


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

(END) Dow Jones Newswires

05-19-23 1550ET