By Kirk Maltais


--Soybeans for July delivery fell 0.4% to $11.16 3/4 a bushel on the Chicago Board of Trade Monday, as indications of any additional export-purchasing from China remain absent.

--Corn for July delivery rose 0.1% to $4.18 a bushel.

--Wheat for July delivery rose 0.3% to $5.81 3/4 a bushel.


HIGHLIGHTS


Missing in Action: Grain traders keep hoping that news of a big purchase of U.S. soybeans by China will soon emerge, but have been left selling off futures when no such confirmation comes to light. This is combining with a seasonal move lower, said Charlie Sernatinger of Marex in a note. "We may not be at our bottom yet for the springtime price drop, but it feels to me as if the market is not yet done with doling out lessons to those engaged in 'groupthink'," said Sernatinger.

Watering the Plants: Rain in crop-growing areas over the weekend were a pressure point for CBOT corn and soybean futures. "The heaviest totals centered in northern Missouri/southern Iowa, but wide stretches of the Corn Belt seeing another inch or more," said Mike Castle of StoneX in a note. "These rains came with some welcomed heat units as well, making much of the region feel like a greenhouse and providing a serious boost to developing corn and soybean crops." The USDA will issue its next Crop Progress report this afternoon at 4 p.m. eastern time.

The Look of Things: How the harvest of U.S. winter wheat crops will go this summer is the main influence on wheat futures Monday - with expectations guarded at best, said Jackie Mundt of Kansas Farm Bureau in a note. "Anecdotal reports have been made of harvest crews skipping typical stopping points in Texas and Oklahoma or starting earlier than normal," said Mundt, adding that some rainfall seen over the weekend has actually made harvesting harder in the next few days.


INSIGHT


Pumping the Brakes: CBOT grain futures are slowly turning higher after a slow start, which is seen as a technical reaction to sizable long liquidation evidenced in Friday's Commitments of Traders report. Funds remain net long in corn and soybeans, but by a margin that is far less than what was seen weeks ago. "With the markets now oversold, fund liquidation probably slows," said Joe Davis of Futures International. "There is no bullish weather story… it remains bearish."

Break the Cycle: Corn futures are down more than 8% over the past two weeks, according to data from FactSet. Part of the pressure is what Austin Schroeder of Price Futures Group called in a note "death spiral liquidation." "The longs that had been piling in on the previous crude strength, excellent exports, prospects of China buying, etc., all wanted out at the same time," he said. Weather in early June is looking wet for U.S. crops, but that can quickly change.

Official Response: The Trump Administration Monday announced John Bellinger as the new Senior Advisor for New World Screwworm Preparedness. Bellinger will work with the USDA to "help further drive its robust effort to explore all available technologies to combat the New World Screwworm," according to a news release from the USDA. Bellinger currently serves on Texas A&M's Board of Regents. He steps into the role as the USDA grapples with the first appearance of New World Screwworm in the U.S. since the 1960s. One case was reported last week in a 3-4 week old calf, and now other cases have also been reported, all in Texas.


AHEAD


--The EIA will release its Weekly Petroleum Status Update report at 10:30 a.m. ET Wednesday.

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

--The USDA will release its monthly WASDE report at noon ET Thursday.


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


(END) Dow Jones Newswires

06-08-26 1511ET