By Kirk Maltais


--Corn for March delivery fell 1.5%, to $4.40 a bushel, on the Chicago Board of Trade on Monday, with grain traders keeping a general hands-off approach to trading as the Brazilian supply situation looks stable.

--Soybeans for March delivery fell 1.3%, to $11.94 a bushel.

--Wheat for March delivery fell 1%, to $5.95 a bushel.


HIGHLIGHTS


Status Quo: Much of the selling seen in grains Monday came from fund traders, said Naomi Blohm of Total Farm Marketing in a note. Corn led the decline, with managed money limiting exposure as headlines remain quiet. "Funds have the fat finger on the sell button and seem to be content to hold it there until we either see stronger demand for U.S. corn exports or something bad happens to the South American corn crop," said Blohm.

Shock Wave: China's order for Evergrande Group to liquidate fueled concerns about the health of China's economy, fanning worries about the country's consumption prospects among analysts. China is the biggest consumer of U.S. grain exports, making its economic health a mover for futures prices.


INSIGHT


Bountiful Signs: Export premiums for Brazilian soy are higher this week, which in turn has traders and analysts thinking that the Brazilian harvest will be stronger than previously expected. "The bears are out in force due to sagging Brazilian soy export premiums which some argue hints at a larger Brazilian harvest," said AgResource in a note. A stronger Brazilian harvest would mean more competition on the world grains export market for U.S. crops.

Over Next Door: A mixed picture for weather in South America is also seen as a reason for lingering pressure for grain futures. "The improvement in the weather forecast for Argentina is likely the fundamental reason for the weakness," said Tomm Pfitzenmaier of Summit Commodity Brokerage in a note. Soil moisture remains good in Argentina, said DTN in a note, but dryness could derail good crop conditions.


AHEAD


--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.

--Corteva will release its fourth-quarter earnings report after the stock market closes on Wednesday.

--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.

--The USDA will release its monthly Grains Crushing report at 3 p.m. ET Thursday.


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


(END) Dow Jones Newswires

01-29-24 1535ET