By Kirk Maltais


--Wheat for May delivery rose 2.7%, to $6.85 a bushel, on the Chicago Board of Trade on Friday, with drought conditions harming the winter wheat crop and geopolitical concerns spurring buying ahead of the weekend.

--Corn for May delivery rose 2.4% to $6.67 3/4 a bushel.

--Soybeans for May delivery fell 0.1% to $14.99 a bushel.


HIGHLIGHTS


Bounce Back: Concerns about Russia's stance on renewing the Black Sea export deal along with drought-stricken winter wheat in the U.S. helped spark a bounce in prices, with traders evaluating wheat futures as oversold, said Joel Karlin, president of Ocean State Research. "It's all responsible for pushing higher in wheat today, giving some support to corn."

Out the Door: New confirmations of flash export sales of U.S. corn to China helped propel futures Friday. The USDA confirmed a sale of 382,000 metric tons spread across the 2022/23 and 2023/24 marketing years. This comes on top of 327,000 tons confirmed sold to China on Thursday. U.S. corn exports have been at prices that are attractive for world buyers. "Buying interest remains in old-crop corn ... as old-new spreads widen out dramatically over the past month," said Matt Zeller of StoneX in a note.


INSIGHT


Weather Watch: U.S. crop-growing areas appear to be facing some challenges, which may affect planting as well as the quality of winter crops in the coming weeks. In the Midwest and Northern Plains, cold temperatures are expected to hit next week, with some possible frost issues in some areas. Meanwhile, southern areas of the Plains continue to be locked in drought conditions, with winter wheat conditions expected to get worse as a result. "Dry conditions remain a concern for winter wheat," agricultural research firm DTN said in a note.

Organized Push: The USDA currently estimates that the ethanol industry will consume 5.25 billion bushels of U.S.its corn in the 2022/23 marketing year, which some members of Congress would like to see change. A bipartisan group wants that number to rise, a move that would support the underlying farm economy. They are pushing the Environmental Protection Agency to increase the volume of ethanol blended with gasoline. In a letter sent to EPA head Michael Regan, the representatives said that current plans for volume requirements under the law for renewable fuel standards don't account for growth in the biofuels industry. They are advocating for an increase in the volume of ethanol blended with gasoline to help support the industry. "The proposed RVOs [renewable volume obligation] do not acknowledge these investments on the ground, undercutting these expansions and unnecessarily putting them at risk -- a potential blow to rural economies across the country," the letter 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.


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

(END) Dow Jones Newswires

04-14-23 1541ET