TOP STORIES:

Wheat Higher on Midwestern Cold Wave

Wheat for March delivery rose 3.3% to $6.57 1/2 a bushel on the Chicago Board of Trade Tuesday as temperatures below zero in growing areas are expected to kill some of the winter wheat crop.

Corn for March delivery rose 2.5% to $5.52 1/4 a bushel.

Soybeans for March delivery rose 0.9% to $13.84 3/4 a bushel.

STORIES OF INTEREST:

Soybean Crush Hits Record High -- Market Talk

12:55 ET - January's soybean crush is the second largest of any month in history, according to data released by the National Oilseed Processors Association. Soybeans crushed in January totaled 184.7M bushels, the second largest amount for any month. The figure is higher than trader expectations, according to Terry Reilly of Futures International, and up 1.5M bushels from the previous month and up 7.8M bushels from the same time last year. "The NOPA crush is seen friendly for the three crush components," Reilly says. Soybean futures on the CBOT are up 0.5%. (kirk.maltais@wsj.com; @kirkmaltais)

US Ethanol Production Expected to Decline -- Market Talk

1332 ET - Grain traders informally surveyed by Dow Jones say that they expect the EIA's ethanol report this week to show a decline in domestic ethanol production. Production is expected to decline by as much as 100,000 barrels per day, reflecting the continued slowdown in the economy amid lingering issues with coronavirus and winter storms snarling travel in much of the country. Demand for corn, which is linked heavily to the ethanol market, is a main driver for corn futures Tuesday, with the most-active CBOT contract up 2%. (kirk.maltais@wsj.com; @kirkmaltais)

Soybean Export Inspections Post Sharp Decline

Inspections of U.S. soybean exports are down this week, falling precipitously while the Lunar New Year is celebrated in China.

In its weekly export inspection report released Monday, the U.S. Department of Agriculture reported that export inspections of U.S. soybeans totaled 809,574 metric tons. That's a 57% decline from the previous week, and off roughly 200,000 tons from the same time last year.

Grains Traders Eye USDA Estimates Later This Week -- Market Talk

0931 ET - With Brazil and China on holiday this week, grains traders are putting most of their focus on the USDA's Agricultural Forum, being held virtually this week. "The trade will be looking ahead to Friday's USDA Annual Outlook Forum for some idea of what we can expect for the US balance sheet heading into the summer," says Tomm Pfitzenmaier of Summit Commodity Brokerage. "It doesn't appear to us that there is any indication that export demand for US is going to back off any time soon, but it may be a while before the USDA makes any significant changes to the export projections." In pre-market trading, corn is up 0.5%, soybeans are up 0.8%, and wheat is up 1.1%. (kirk.maltais@wsj.com; @kirkmaltais)

General Mills Lays Out Growth Plan -- Market Talk

0800 ET - General Mills says it believes it can generate comparable sales growth of 2% to 3% and mid-to-high growth in profits on an adjusted basis over the long term as it works on carrying out a new growth strategy. That effort, which the company is expected to discuss today at an investor conference, has the food maker prioritizing eight markets, including the U.S., China, Brazil and France, and allocating "outsized" resources in five product types, such as cereal, pet food and Mexican food. Shares up 0.2% premarket. (micah.maidenberg@wsj.com; @MicahMaidenberg)

Managed Money Funds Stay Long in Grains -- Market Talk

12:15 ET - Although last week's price action showed weakness in maintaining the high levels seen for grains futures, large fund traders have kept their long positions in US row crops stable. Funds actually added to their long positions in corn and soybeans, according to data from the CFTC's commitment of traders report, which shows data through Feb. 9. The net long for corn among managed money investors is now at over 340,000 contracts, according to the CFTC. "Large specs are back, adding to the long pile, led by the managed money crowd," Dan Hueber of the Hueber Report says. Grains are trading higher on CBOT. (kirk.maltais@wsj.com; @kirkmaltais)

THE MARKETS:

Cattle Futures Higher With Marketing Expected To Drop -- Market Talk

1527 ET - Live cattle futures finished trading Tuesday up 0.5% to $1.258 per pound--the highest that they've been since late February. The uptick comes as analysts surveyed by The Wall Street Journal say that they expect a decline in cattle being marketed by 5.5% from this time last year in the USDA's Cattle on Feed report due out on Friday. Less cattle available for usage as meat may ultimately push cattle prices higher. Boxed beef prices were mostly steady today, according to USDA data. Meanwhile, lean hog futures finished 1.1% higher at 86.175 cents per pound.(kirk.maltais@wsj.com; @kirkmaltais)

(END) Dow Jones Newswires

02-16-21 1717ET