By Kirk Maltais

-Wheat for July delivery rose 1.4% to $6.98 1/2 a bushel, on the Chicago Board of Trade on Tuesday, in reaction to continued concerns about Russia's wheat output in the midst of tough weather conditions.

-Corn for July delivery fell 0.5% to $4.58 a bushel.

-Soybeans for July delivery fell 1% to $12.35 3/4 a bushel.


Harvest Cut: Russian agricultural research firm IKAR said that it has cut its outlook for the country's output of wheat this year, decreasing estimates to 83.5 million metric tons from 86 million tons anticipated earlier this year, with exports at 45 million tons versus 47 million previously expected. IKAR attributes the cuts to frost and drought weather that hit much of the Black Sea this year, with the escalating war also threatening to destroy more points of origin for export vessels.

On Course: The pace in which U.S. farmers have planted their corn and soybean crops this year remain in line with the five-year average, muting sentiment that U.S. planting pace may be facing delays. In its latest weekly report, the USDA says that corn crop planting is now 70% complete, and soybeans are 52% of the way there. For corn, the pace is one point below the average, while soybeans are 3 points ahead. "Corn planting that lagged average slightly in early May is now essentially caught up," Matt Zeller of StoneX said in a note. "Soybean planting has held ahead of average all season."


Black Sea Woes: Drought and frost issues have been wreaking havoc on Russia's crop fields, and have also been an issue in Ukraine as well. Ukraine has fared better than Russia, but hasn't been immune to the weather issues plaguing its neighbor, which may prove to tighten export wheat availability as the year progresses. "The Black Sea will continue to pump out cheap wheat if current problems reverse, but we could see a dramatic increase in the focus on the wheat market if it does not," Arlan Suderman of StoneX said in a note.

Trendy Sales: Mexico and Spain were buyers of U.S. corn exports, the USDA said in a notice. Some 113,050 metric tons of corn were sold for delivery to Mexico--with 56,525 tons sold for delivery in 2023/24 and 56,525 tons sold for 2024/25. Additionally, 110,000 tons of corn were sold to Spain for delivery in 2023/24. Traders are unsure if this flash sale is the beginning of a trend or a one-off event. "The degree of the likely seasonal slowdown in exports during June-August this year will be critical in whether the USDA's export projection will be reached or not," Tomm Pfitzenmaier of Summit Commodity Brokerage said in a note.


-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.

Write to Kirk Maltais at

(END) Dow Jones Newswires

05-21-24 1526ET