By Kirk Maltais


--Wheat for July delivery fell 2.4% to $6.92 3/4 a bushel, on the Chicago Board of Trade on Wednesday, with the forecast adding more rainfall for states still experiencing tough drought conditions.

--Soybeans for July delivery fell 0.8% to $14.78 3/4 a bushel.

--Corn for May delivery fell 0.8% to $6.72 1/4 a bushel.


HIGHLIGHTS


Quenching Thirst: A wetter outlook ahead for otherwise parched areas of the U.S. Great Plains pressured wheat on Wednesday. "U.S. 8-10 day weather forecast keeps adding needed moisture into the U.S. south plains, especially Kansas and Nebraska," Steve Freed of ADM Investor Services said in a note. Lingering drought conditions have been a factor in keeping winter wheat quality low and slowing down spring wheat planting.

Back on the Water: Applying pressure to grains across the board was news that inspections of grain-carrying vessels leaving Ukraine has resumed. That eased speculation about Russia's intentions in the short term when it comes to the future of the Black Sea Grain Initiative agreement. Additionally, Ukraine and Poland reached a deal to allow Ukrainian grain to transit through Poland, which means that blocks on the flow of grains out of Ukraine are mostly gone, at least for now.

Dried Up: A lack of flash sales of U.S. corn exports by the USDA -- specifically to China -- put pressure on corn futures. "No exports for a third day is disappointing," said Brian Hoops of Midwest Market Solutions. The USDA announced a spurt of export sales last week, the final one coming on Friday with 382,000 metric tons sold to China. Analysts surveyed by The Wall Street Journal this week are forecasting corn export sales through the week ended April 13 to total 736,000 tons to 1.2 million tons, up from 527,700 tons for the week ended April 6.


INSIGHT


Muddy Waters: The wet weather outlook in the U.S. Corn Belt is expected to help wheat by easing the drought now being seen in the Plains. However, this same wet weather is a negative for corn farmers attempting to get their planting started since it makes seeding acres far more difficult. "Inclement and cold weather will slow planting and fieldwork in the Corn Belt," Daniel Flynn of Price Futures Group said in a note. "Too much moisture is a concern for the Northern Plains, Southern Plains, Midwest and Northern corn fields." In its last update, the USDA said that U.S. corn planting is currently ahead of its usual pace.

Big Bounce: Production of ethanol in the U.S. climbed back over the 1 million barrels per day mark this week, after falling to its lowest level since January. In its latest weekly report, the EIA said that daily ethanol production hit an average of 1.024 million barrels a day, up from 959,000 barrels a day reported last week. That beats the estimates of analysts surveyed by Dow Jones who forecasted production of 937,000 barrels to 974,000 barrels per day. Good production margins for producers helped spark the surge, Terry Reilly of Futures International said in a note.


AHEAD


--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.

--The USDA will release its monthly Cattle on Feed report at 3 p.m. ET Friday.

--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.


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

(END) Dow Jones Newswires

04-19-23 1633ET