-- Wheat for March delivery fell 3.5% to $5.85 a bushel on the Chicago Board of Trade Monday in reaction to indications Russia may increase the amount of wheat allowed to be exported next year.
-- Soybeans for January delivery fell 2% to $11.68 1/2 a bushel.
-- Corn for March delivery fell 1.8% to $4.26 a bushel.
Quota Qualms: The Russian agricultural ministry says that it may increase its planned wheat quota to 17.5 million metric tons from 15 million tons, which would be applicable for Russian exports through June.
"This could raise 2020-21 Russian wheat exports above 40 million metric tons," said AgResource. "The move is a political swipe at the Russian livestock and milling industry that were lobbying for an export duty or reduced quota to pressure domestic Russian grain prices."
Rainy Days and Mondays: Grains futures trading on the CBOT fell overnight and remained lower throughout the day in reaction to rainfall arriving for beleaguered South American crops, according to Karl Setzer of AgriVisor.
"Long-range forecasts still indicate drier-than-normal conditions for the next two weeks, but thoughts are these rains will at least minimize crop loss at this time," said Mr. Setzer.
Unwavering Appetite: Exports of U.S. soybeans are continuing to go mostly to China, according to data from the USDA. The agency's latest grain export inspections report shows that of the 2.04 million metric tons inspected for export, 1.67 million tons were destined for China. Even with data showing strong Chinese purchasing, soybean futures are down Monday as grains traders were again unable to push the most-active contract past the $12-per-bushel barrier.
"The trend for beans is still higher and the outlook is the most supportive, but there is a very large speculative long in the market that is vulnerable to see profit-taking ahead of year end," said Doug Bergman of RCM Alternatives.
Pass the Ball: The Renewable Fuels Association, a trade group representing the ethanol industry, is calling on the Trump administration's EPA to stand aside and wait for the administration of President-elect Biden to handle new regulations for renewable fuels, this after the current EPA has apparently missed its deadline to publish its final rule for renewable volume requirements among fuel refineries.
"It shouldn't come as a surprise to anyone that EPA is missing its statutory deadline for publishing the final rule for 2021 RVOs, given that we still haven't even seen a proposed rule," said Geoff Cooper, president of the RFA.
According to Mr. Cooper, a Biden administration is likely to be friendlier for the ethanol industry, which could lead to higher domestic consumption of U.S. corn.
-- The USDA is scheduled to release its monthly grains crushings report at 3 p.m. EST Tuesday.
-- The EIA is due to release its weekly update on ethanol production and inventories at 10:30 a.m. EST Wednesday.
-- The USDA is scheduled to release its latest weekly export sales numbers at 8:30 a.m. EST Thursday.
Write to Kirk Maltais at firstname.lastname@example.org
(END) Dow Jones Newswires