By Kirk Maltais
--Wheat for December delivery fell 1.6% to $5.68 a bushel on the Chicago Board of Trade on Friday, with traders responding to signs that interest rates may stay higher for longer.
--Soybeans for November delivery fell 1.3% to $12.63 a bushel.
--Corn for December delivery fell 1% to $4.93 a bushel.
HIGHLIGHTS
Big Picture: Stronger-than-expected job numbers in September signaled possible rate hikes ahead to fight inflation. For grains, this could bolster support for the U.S. dollar, a negative for export demand. "The heady September payroll gain ... showed that the US economy is hanging tough, despite rising interest rates," AgResource said in a note.
Selling the News: News agencies reported that a Turkish cargo ship was damaged by a sea mine in the Black Sea, though the damage was minor and there were no casualties. The fear that other cargo ships will encounter mines as they transport grain from Ukraine is expected to introduce new volatility into Black Sea wheat exports.
The Pressure is On: The potential for a healthy harvest continues to weigh on corn and soybean trading. "Harvest pressure remains on both commodities, with traders still reporting reassuring yields to date," AgriTel said in a note. Weather appears supportive for farmers to get into their fields, with yield reports being mixed.
INSIGHT
Shallow Water: U.S. grains are likely to face shipping delays, as worsening drought conditions around the Mississippi River were reported by the U.S. Drought Monitor. "Drought saw further expansion in Texas, Mississippi, Indiana, and Ohio," AgriSompo said in a note. "This could serve to exacerbate the river issues."
AHEAD
--The USDA will be closed in observance of Columbus Day on Monday and will reopen Tuesday.
--The USDA will release its weekly grains export inspections report at 11 a.m. ET Tuesday.
--The USDA will release its weekly crop progress report at 4 p.m. ET Tuesday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
10-06-23 1548ET
