By Kirk Maltais
-- Wheat for March delivery rose 0.4% to $5.42 3/4 a bushel on the Chicago Board of Trade on Tuesday as cold weather appears to be affecting the condition of the U.S. winter wheat crop.
-- Corn for March delivery were unchanged at $4.57 3/4 a bushel.
-- Soybeans for March delivery fell 0.1% to $9.97 1/4 a bushel.
HIGHLIGHTS
Condition Cut: Wheat rose in reaction to a decline to U.S. winter wheat conditions through Jan. 5 versus the previous week. The USDA rated 47% of the Kansas winter wheat crop in good to excellent condition, down from 55% in late November.
"Wheat ratings also declined during December in Nebraska, Oklahoma and South Dakota, but improved in Montana and Colorado," said Naomi Blohm of Total Farm Marketing in a note.
Traders are also taking their cues from watching weather in Argentina and Russia.
Going Long: CBOT corn was under pressure after the holiday-delayed Commitments of Traders Report showed fund traders adding length to their positioning in corn.
The CFTC said for the week ended Dec. 31, fund traders were long by nearly 230,000 contracts in corn, with traders adding nearly 42,000 long contracts and cutting shorts by just over 26,000 contracts.
It is the largest net long in corn since 2022, AgResource said in a note. "The hefty spec long corn position creates concern regarding liquidation amid the change in U.S. political leadership," the firm said.
INSIGHT
Focus Points: How the USDA adjusts its outlook for U.S. corn and soybean production this past spring will likely dictate how traders and analysts react to Friday's WASDE report.
Analysts are forecasting that production of both grains will be marked down slightly by the USDA, although corn production is expected to remain above the 15 billion-bushel mark, said Doug Bergman of RCM Alternatives in a note.
"Focus will be on U.S. corn and bean production, which the USDA did not update on their December report," Bergman said. "Expectations are for a small reduction of both."
Slightly Less Optimistic: U.S. farmer sentiment about the agricultural economy grew darker over the past month, according to data from Purdue University and the CME Group. While farmers are less optimistic than in previous months, overall sentiment remains better than it was before the presidential election in November.
"While sentiment dipped this month, it's clear that much of the post-election optimism about future conditions is still holding strong," said James Mintert of Purdue.
AHEAD
-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EST Wednesday.
-- The USDA will be closed Thursday in observance of the National Day of Mourning for President Jimmy Carter.
-- The CBOT is scheduled to close trading early Thursday in observance of the National Day of Mourning for President Jimmy Carter. The market will close at 1:15 p.m. EST.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
01-07-25 1529ET
