By Paulo Trevisani


-Wheat for May delivery rose 2.7%, to $5.42 3/4 a bushel, on the Chicago Board of Trade on Monday, on concerns that the war in Ukraine could again cripple supply lanes.

-Soybeans for May delivery fell 0.9%, to $11.87 3/4 a bushel.

-Corn for May delivery fell 0.1%, to $4.36 1/2 a bushel.


HIGHLIGHTS


War Tailwind: U.S. wheat futures got some tailwind from reports of Russian attacks on Ukrainian export facilities in retaliation for Ukrainian drone strikes on Russian refineries, Arlan Suderman, chief commodities economist at StoneX, said in a report. The effect didn't spread over other commodities in the grains complex, though. Meanwhile, the USDA said export inspections rose last week for corn and declined for wheat and soybeans.

Russian Prices: Wheat prices rallied after starting Monday moving sideways and as Russian prices rose. "Stabilizing Russian wheat export prices and a new growing season is spurring short covering," AgResource said in a report. "Wheat appears to have the best world fundamentals heading into a new growing cycle." AgResource said that managed money is estimated to have bought 3,100 contracts of wheat.


INSIGHT


Corn Slide: Corn prices "could still slide lower, unless there is a big weather issue," Jon Scheve, from Superior Feed Ingredients, said in a report. Corn has been trading below $4.50 a bushel, compared with more than $6 a bushel a year ago. Scheve noted that in 2010 and 2012 "the market continued to trade lower from March into June before reversing direction." Scheve sees signs that corn acreage might end up being too much, in another headwind for prices. He said, however, that weather in the U.S. or Brazil could still hurt crops and support prices.

Comfortable Outlook: Some of Monday's action in agricultural markets could be a response to Friday's commitments of traders report. RCM's Doug Bergman said in a note that net buying for soybeans was less than expected, while in wheat it was more than expected and corn was in line with forecasts. Bergman added that the "supply outlook remains comfortable" for soybeans and wheat might get some tailwind from Russian action against Ukrainian grain facilities.


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


--Anthony Harrup contributed in this article.


Write to Paulo Trevisani at paulo.trevisani@wsj


(END) Dow Jones Newswires

03-18-24 1516ET