By Kirk Maltais
-- Wheat for July delivery rose 5.9% to $12.47 1/2 a bushel on the Chicago Board of Trade Monday, closing limit-up in reaction to India's confirmation over the weekend that it will ban exports of its wheat.
-- Corn for July delivery rose 3.6% to $8.09 1/2 a bushel.
-- Soybeans for July delivery rose 0.6% to $16.56 1/2 a bushel.
HIGHLIGHTS
Off the Market: Wheat futures spent much of the day up 70 cents per bushel, its exchange limit, after India confirmed its ban on wheat exports over the weekend. It comes after estimates from the country showed a sizable decrease in its new crop due to drought conditions.
Traders say the new ban puts an additional strain on the world export market, considering that India was expected to be an alternative to Russia and Ukraine amid the ongoing war there.
"India cut the knees out from under the world buyers prohibiting new wheat sales," said Charlie Sernatinger of ED&F Man Capital in a note.
Spring Speed-Up: Grain traders widely believe that U.S. farmers managed to accelerate their planting this weekend, although the extent that they were able to catch up was an open question.
"Some areas reported that it took a day or two longer to dry the soils than they expected, but significant progress was accomplished," said Arlan Suderman of StoneX in a note.
After being only 22% planted the previous week, corn planting is expected to be roughly 50% planted after the past week, traders say. Even if such a big jump occurs, it will still be well behind last year's pace of 78%, as well as the five-year average of 67%.
Support System: The strength seen in wheat futures proved to be supportive for the rest of the agricultural complex Monday, particularly corn, said Craig Turner of Daniels Trading in a note.
"The wheat issues the world is facing can't be solved after one good harvest," said Mr. Turner. "It is hard to be bearish any substitutes and that includes corn and rice."
Soybean futures are expected to see a push in future sessions as well, with soymeal more favored as a feed ingredient, although the vegetable oil complex is a chief factor supporting soybeans now.
INSIGHTS
Corn Crunch: Export inspections for U.S. corn fell back this week, according to data from the USDA.
In its latest grain export inspections report, the government said corn inspections totaled 1.04 million metric tons for the week ended May 12, down from 1.48 million tons reported last week and down from 1.99 million tons at this time last year. Korea was a leading destination for U.S. corn this week, along with Mexico and China.
However, soybeans and wheat inspections turned higher for the week, with soybean inspections totaling 784,187 tons, up from 504,441 tons last week. Wheat inspections totaled 348,048 tons, up from 262,919 tons last week.
Sliding Rate: The latest data from the National Oilseed Processors Association pegs April's rate of soybean crush at 169.8 million bushels.
That is down from a rate of 181.8 million bushels in March, and below trader expectations, according to Terry Reilly of Futures International in a note. The slower rate comes as traders watch developments with Indonesia's palm oil export ban.
AHEAD
-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EDT Wednesday.
-- The USDA is due to release its weekly export sales report at 8:30 a.m. EDT Thursday.
-- The USDA is scheduled to release its monthly livestock slaughter report at 3 p.m. EDT Thursday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
05-16-22 1557ET
