By Kirk Maltais

--Corn for March delivery rose 1.9% to $5.34 1/4 a bushel on the Chicago Board of Trade Thursday as grain traders saw strong export sales data this morning supporting higher prices.

--Soybeans for March delivery rose 1.7% to $14.30 1/2 a bushel.

--Wheat for March delivery rose 1.4% to $6.70 a bushel.

HIGHLIGHTS

Rational Decision?: CBOT grain futures climbed after a strong export report from the USDA that exceeded the expectations of traders surveyed by The Wall Street Journal. Some traders say even at current high prices, rationing hasn't yet started for U.S. grains. "Strong exports this week will keep the 'demand is understated' mantra in the corn market," said Doug Bergman of RCM Alternatives. "Calendar spreads are firm, which would suggest there is plenty demand for exports, which makes sense with U.S. corn the cheapest origin in the world."

Meanwhile... in Argentina: The short-term weather outlook in Argentina also provided support for grain futures Thursday. Scattered showers are forecast for Argentina's growing areas over the weekend, but outside of that there is no other rainfall expected, according to DTN.

INSIGHTS

Waiving Goodbye: The U.S. renewable fuels industry is up in arms this week amid reports that the outgoing Trump administration may grant a bevy of waivers to small oil refineries allowing them to skirt renewable fuel standards for blending ethanol in gasoline. "There is no justification for President Trump, Andrew Wheeler, and their allies to award a massive, short-sighted handout to oil companies at the expense of farm communities," said a joint statement of groups representing biofuels, such as the Renewable Fuels Association and the National Farmers Union. The possibility has also elicited responses from politicians representing rural areas. Last week, the U.S. Supreme Court agreed to review a ruling by a lower court that said small-refinery waivers were unlawful.

Surplus Spread: A wheat surplus in the European Union in the 2021/22 season will be larger than expected as the continent's farmers will face stiff export competition, according to a monthly report by French agricultural consultancy Strategie Grains. Strategie raised its forecasts for the surplus by 300,000 metric tons to 1.6 million tons -- excluding the U.K., which left the EU at the end of last year. A decline in EU wheat exports, with harvests expected to be plentiful, is behind the surplus, the consultancy said.

AHEAD:

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

--The Chicago Board of Trade will be closed on Monday in observance of Martin Luther King Jr. Day. It will reopen Tuesday.

--The USDA will release its weekly export inspections report at 11 a.m. ET Tuesday.

Will Horner contributed to this article.

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

(END) Dow Jones Newswires

01-14-21 1536ET