By Kirk Maltais

--Soybeans for July delivery rose 2% to $16.46 1/2 a bushel on the Chicago Board of Trade Friday, with soybeans catching a lift from higher prices for soybean oil.

--Wheat for July delivery fell 0.1% to $11.77 1/2 a bushel.

--Corn for July delivery fell 1.3% to $7.81 1/4 a bushel.

HIGHLIGHTS

Veg Oil Viability: Developments in Indonesia continue to have repercussions in the soy market, with soyoil considered a viable alternative as an edible oil. Usage as biofuel continues to be the main driver in vegetable oil price strength, which is why the edible oils have been taking many of their cues from crude oil. In trading Friday, crude oil prices rose 4.1%--which in turn pushed CBOT soyoil futures up 1.5%. "Soybean oil remains well supported as demand is holding strong amid very tight supplies of vegetable oils here and around the world," said Jack Scoville of Price Futures Group in a note. Indonesia instituted its ban on palm oil exports late last month, in an effort to bolster food security.

Collecting Profit: Wheat futures fell Friday, this after surging Thursday following the USDA's release of the WASDE report. It showed that winter wheat production is expected to be lower in the U.S., while import/export flow is expected to hit a record high globally this year. Traders are generally locking in profits from Thursday, said Arlan Suderman of StoneX in a note. "Wheat prices pulled back in some pre-weekend profit taking after surging the daily limit higher following yesterday's USDA crop report, which allowed corn prices to do the same."

INSIGHTS

Reconsidering Things: Following Thursday's WASDE report, traders are mulling what grain prices should be. "Corn had a mixed report yesterday with the USDA already lowering yield by 4 bushels per acre, but lower demand estimates lessened the impact of the reduced supply," said Doug Bergman of RCM Alternatives in a note. "U.S. ending stocks are forecast to be tight, but probably not tight enough to justify current prices." Results for soybeans and wheat were more supportive, although trader focus is firmly on weather over the next few weeks in growing areas.

Picking Up Slack: Roughly 27 million tons of grain are still stuck in Ukraine, according to USDA Secretary Tom Vilsack, who was briefed by Ukraine's agricultural minister during a meeting of G7 agriculture officials in Germany. Mr. Vilsack says the U.S. is focused on helping to make up for the resulting shortfall, citing a move by the Biden administration to incentivize farmers to boost crop production by planting an acre twice in the same year. Additionally, the USDA is easing restrictions on land coming out of a federal conservation program to increase the potential for double-cropping, Mr. Vilsack 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.

Jesse Newman contributed to this article.

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

(END) Dow Jones Newswires

May 13, 2022 15:29 ET (19:29 GMT)