By Kirk Maltais
--Soybeans for November delivery fell 1.2% to $10.50 a bushel on the Chicago Board of Trade Friday as grains traders locked in their profits from recent gains.
--Corn for December delivery fell 0.4% to $4.02 a bushel.
--Wheat for December delivery rose 1.1% to $6.25 1/4 a bushel.
Corrective Lens: Soybean futures fell Friday after rising for three straight trading sessions. The soy complex as a whole was driven by grains traders seeking to lock in profits in the short-term, Terry Reilly of Futures International said. "Soybeans are trading lower on end-of-week profit-taking led by soybean meal. Some traders think the rally for soybean meal yesterday was overdone," said Mr. Reilly, adding that rainfall reported in South America aiding their growing bean crop also applied pressure to futures.
Chinese Interest Eyed: Wheat futures led CBOT grain futures higher Friday. A lack of rainfall in Russia supporting their wheat crops has been a factor elevating U.S. wheat futures. But indications China may be interested in buying more U.S. wheat exports also had the contract elevated. "The diminished rain for Russian wheat areas along with ongoing rumors of China interest in world wheat has the attention of grain traders," AgResource said. While it remains to be seen if China enters the world export market, it's clear that the Russian situation doesn't look to improve soon. "Russian farmers are becoming downright pessimistic on their 2021 crop prospect," AgResource said.
Weak Showing: Export sales for U.S. corn for the week ending Oct. 8 fell at the low end of trader estimates, totaling 655,200 metric tons according to the USDA. Grain traders surveyed by The Wall Street Journal had estimated that corn sales would land from 600,000 tons to 1.4 million tons. This week's total is down 47% from the previous week and down 63% from the prior four-week average. Meanwhile, soybean sales totaled 2.63 million tons and wheat sales totaled 528,500 tons. For soybeans, this week's total is higher than anticipated by traders, and in line with sales totals of the previous weeks.
Unsupported: For wheat, the main factor continues to be tough weather conditions in Russia, which is why wheat futures have been up for seven straight days. However, the upward momentum seen on wheat doesn't appear to be well-supported by market fundamentals, said Richard Buttenshaw of Marex Spectron. "Fundamentally we don't see a reason to be up this high given what we know now, and feel the market could quit easily... if some rainfall appears," said Mr. Buttenshaw.
--The USDA releases its weekly grain export inspections data at 11 a.m. ET Monday.
--The USDA releases its weekly crop progress report for the 2020/21 crop at 4 p.m. ET Monday.
--The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. ET Wednesday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires