By Paulo Trevisani


--Wheat for March delivery fell 2% to $6.17 a bushel, on the Chicago Board of Trade on Monday, amid declining export sales.

--Corn for March delivery fell 1.2% to $4.77 a bushel.

--Soybeans for January delivery rose 0.9% to $13.27 a bushel.


HIGHLIGHTS


Rising Exports: Soybean futures gained traction after higher-than-expected weekly U.S. exports and reports of an increase export tax on soy products in Argentina. AgResource said in a note that "uncertain Brazilian rainfall" also supported soybean prices. The firm said that rainfall at this time of the year is "critical in salvaging potential" in Brazil's growing regions. AgResource added that Saudi's purchase of wheat last week "reported at a massive 1.4 [million metric tons] only works with Russian origin." Meanwhile, U.S. wheat export potential "has faded following China's buying spree amid large premiums to comparable EU/Black Sea origin," AgResource said.

Small Impact: The USDA's weekly grains export inspections report showed increased demand from China and Mexico for U.S. corn and soybeans in the week of Dec. 14. Overall, shipments of soybeans totaled 1.4 million metric tons, up from 999,790 tons the week before, and corn totaled 947,418 tons, up from 725,330. Wheat inspections fell to 284,792 tons from 317,156 tons.

Planting Advances: Brazil's soybeans planting reached 94% of the total estimated area last week, up from 91% the week before, AgRural said in a note, adding that in previous years planting was more advanced by now. The Brazil-based firm said that key areas are lacking humidity, with Mato Grosso state already recording consolidated production losses. In Bahia state, "large areas need replanting" due to low humidity, AgRural said. In the southern Rio Grande do Sul state, excessive rainfall have been a problem, partially offset by a dry spell last week.


INSIGHT


Expected Turbulence: "A choppy week lies ahead," AgResource said in a note about grains futures. "ARC's research strongly indicates breaks in wheat/corn are end user buying opportunities into late winter." The firm said Brazilian weather will be a key driver of soybean prices for the time being, as weather conditions threaten crops in South America.


AHEAD


--The EIA will release its weekly ethanol production and stocks 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 Livestock Slaughter report at 3 p.m. ET Thursday.

--The USDA will release its monthly Cattle on Feed report at 3 p.m. ET Friday.

--The USDA will release its monthly Cold Storage report at 3 p.m. ET Friday.

--The USDA will release its quarterly Hogs and Pigs report at 3 p.m. ET Friday.

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


Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

12-18-23 1508ET