By Kirk Maltais


-Corn for July delivery rose 0.3% to $4.13 1/4 a bushel on the Chicago Board of Trade Friday, with corn initially rising in response to a potential U.S.-Iran deal - before the contract retreated on indications of wet weather coming.

-Soybeans for July delivery fell 0.2% to $11.18 3/4 a bushel.

-Wheat for July delivery fell 0.3% to $5.85 1/4 a bushel.


HIGHLIGHTS

Soggy Outlook: CBOT grains pared earlier gains following cool and wet forecasts heading into the weekend. "The cool/wet weather favors corn and soybean crops, but could cause disease issues in wheat by late June," says AgResource in a note. These rains are projected to persist into next week, potentially resulting in corn and soybeans showing improved crop conditions in Monday's Crop Progress report from the USDA.

Center Stage: Traders set aside Thursday's WASDE report, instead turning their focus to the back-and-forth between the U.S. and Iran moving toward a deal that could reopen the Strait of Hormuz, although Iran says it "hasn't reached a final conclusion about the agreement." Jim Wiesemeyer of Ag Bull Trading said "markets are pricing in de-escalation, but risks remain," he said. "The market reaction reflects a growing belief that both Washington and Tehran have strong incentives to avoid a prolonged conflict."

Taking Cues: Soybeans were mostly lower in part because soyoil futures were down throughout the day, said Charlie Sernatinger of Marex in a note. Most-active soyoil futures closed the day down 0.5%, to 72.84 cents a pound. But counteracting this was strong soymeal prices, although those finished down 0.1% as well.


INSIGHT


Directing Traffic: Weather is typically the prime factor moving money into grain futures. "Almost everything today is money flow in response to geopolitical news," said Karl Setzer of Consus Ag Consulting in a note. But while macro-level economics are drawing outsized attention, a report from the NOAA's Climate Prediction Center that the climate has shifted into an El Niño system, can't be ignored.

Generational Low: The U.S. Hard Red Winter wheat crop is at its smallest since 1957, the USDA reported Thursday. Analysts spent the day speculating what this means for world supplies and demand. "The further deterioration in the crop outlook in the U.S. and the tight supply situation on the global wheat market point to higher wheat prices in the coming months," said Commerzbank in a note, adding that the USDA revised its projection for Australian wheat crops lower.


AHEAD


-The USDA will release its weekly Grain 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 Petroleum Status Update report at 10:30 a.m. ET Wednesday.


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

(END) Dow Jones Newswires

06-12-26 1522ET