By Kirk Maltais


--Wheat for May delivery rose 2.6% to $10.10 1/4 a bushel on the Chicago Board of Trade Monday in response to the potential of new sanctions on Russia amid allegations of atrocities committed by Russian soldiers in Ukraine.

--Corn for May delivery rose 2.1% to $7.50 1/2 a bushel.

--Soybeans for May delivery rose 1.2% to $16.02 1/4 a bushel.


HIGHLIGHTS


Russia Sanctions: Grain futures on the CBOT were among commodities trading higher in response to accusations from Ukrainian President Zelensky of war crimes perpetrated in Ukraine by Russian forces. The claims have markets considering the impact of new sanctions that could come from Western nations in response, says Robert Yawger of Mizuho Securities USA. Further sanctions are likely to impact an already-stifled export flow from the region.

Big China Buy: The USDA says China purchased a large quantity of U.S. corn exports for delivery in both the old and new crop years. The USDA says that in total, 1.08 million metric tons of corn were sold to China - with 676,000 tons being delivered in the 2021/22 marketing year and 408,000 tons being delivered in 2022/23. Rumors of a large purchase of corn by China has been a trading driver in recent sessions on the CBOT.


INSIGHTS


Dry Spell: A largely dry forecast ahead for the next two weeks in winter wheat areas looks to provide support for higher wheat futures. "The forecast warms dramatically in the 7-10 day period with 80's/low 90's forecast for the Southern and Central Plains," said AgResource. "The lack of rain, strong winds and warming temperatures look to add further stress to hard red wheat." Drought has been a persistent issue for wheat. Other concerns, such as continued war in Ukraine impeding exports out of the Black Sea region, are more prominent factors lifting wheat today.

Digesting the Data: Understanding data released last week regarding acreage plans and existing inventories is still a focus for grain traders this week - as will digesting Friday's WASDE report. "Trade will likely continue to use last week's updated acres and stocks data to try and better determine both this year's ending stocks and production potential," said Karl Setzer of AgriVisor.


AHEAD:


--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.

-Conagra Brands Inc. will release its third-quarter earnings report before the stock market opens Thursday.

--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.


Write to Kirk Maltais at kirk.maltais@wsj.com


(END) Dow Jones Newswires

04-04-22 1557ET