By Kirk Maltais
--Corn for May delivery rose 1% to $6.39 3/4 a bushel on the Chicago Board of Trade on Friday, in anticipation of new data showing the extent of the damage done to Argentina's crops during its drought-ridden growing season.
--Soybeans for May delivery rose 0.6% to $15.18 3/4 a bushel.
--Wheat for May delivery fell 0.6% to $7.08 3/4 a bushel.
HIGHLIGHTS
Deep Cuts: A report from the Buenos Aires Grain Exchange highlighting the effect of drought on Argentina's crop production made traders focus on what final acreage totals from the country may be. Analysts surveyed by The Wall Street Journal think that the USDA will make sizable cuts to its projections for Argentina's production in next week's WASDE report. In its last report, the USDA was seen as being relatively conservative in its regional outlook but is expected to be more dramatic this month, cutting its corn production forecast to 43.2 million metric tons from 47 million tons projected last month, and soybean production forecast to 36.3 million tons from 41 million tons.
Hope Springs Eternal: Confirmation of rumors that have been circulating among traders of new Chinese purchases of U.S. corn didn't materialize, but traders held on to the sentiment that corn export demand would improve. "FAS's daily reporting system was void of new demand, but … there does exist a window for improved U.S. corn export demand," said AgResource in a note. The current price of U.S. corn makes it difficult to be bearish about improved export sales, the firm said, although export inspections of U.S. corn remain far behind this time last year, according to USDA data.
INSIGHT
Hospitable Environment: With the planting season soon to begin for U.S. crops, analysts see world weather patterns as creating favorable conditions for the spring. "At the end of February, most market-watchers anticipated an end of La Niña and the drought in the western Corn Belt by the time seed is going in the ground," said Chip Flory of Farm Journal in a note. The end of La Niña may provide crop-growing areas with ample rainfall and could ease some of the drought seen in the West.
Elevated Levels: A long-running decline in global food prices continued for an 11th consecutive month in February, though the rate of decline appeared to be easing with grains prices remain locked at historically elevated levels and many countries continuing to experience soaring local food prices, according to data from FAO. The FAO's Food Price Index inched down 0.6% last month to 129.8. The barometer registered declines in the price of vegetable oils and dairy products while grain and meat prices remained flat and sugar prices jumped.
AHEAD
--The USDA will release its weekly grains export inspections report at 11 a.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 world supply and demand report at noon ET Wednesday.
--Will Horner contributed to this article.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
03-03-23 1531ET
