By Kirk Maltais


-- Wheat for May delivery rose 5.4% to $9.84 a bushel on the Chicago Board of Trade Tuesday, the highest since 2008, in reaction to indications of a prolonged conflict as Ukraine defends itself from a Russian attack.

-- Corn for May delivery rose 5.1% to $7.25 3/4 a bushel.

-- Soybeans for May delivery rose 3.3% to $16.90 a bushel.


HIGHLIGHTS


Long-Term Strife: Grain futures charged higher Tuesday amid a new wave of missile attacks by Russia aimed at Ukrainian civilian areas.

"CBOT traders are starting to understand that the Ukraine war will be extended, and even if Russia is able to capture Ukraine in the coming weeks, the world will not allow Russian/Ukraine grain [or] energy to be sold," said AgResource. "For now, the world has just lost its biggest wheat/sunoil/barley exporter."


Finding New Highs: Russia's assault on Ukraine propelled grain futures to new heights as businesses cut ties with Russia, including major shipping corporations.

Wheat futures finished the day at the highest they have been since 2008, while corn futures closed at their highest point since May 2021 and soybeans rose to the highest they have traded since 2012.


INSIGHTS


Parched Crops: While most of the market focus has been on Ukraine, weather in South America has stayed dry, providing further support for corn and soybean futures.

How this dryness affects South American crops will be seen in the USDA's next WASDE report, said Arlan Suderman of StoneX. "Argentine and Brazil production estimates for corn and soybeans will be some of the most watched numbers from USDA next week," said Mr. Suderman.

Scattered showers are expected in Brazil and Argentina in the coming weekend, according to Tuesday's forecast from DTN.


Grain Runup: The shock to CBOT grain futures ahead of the war in Ukraine provided U.S. farmers with a shot of confidence, according to a new survey released by Purdue University and the CME Group. Farmers surveyed in its monthly barometer in February -- before the military conflict began -- said the boost to grain futures has been supportive to their bottom lines.

However, concerns remain over steep input costs.

"Higher input costs have consistently been the number one concern identified by farmers over the past six months," said Purdue.

Futures surged in February because of concerns about war impacting exports from Russia or Ukraine, both leading grain exporters.


AHEAD


-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EST Wednesday.

-- The USDA is due to release its weekly export sales report at 8:30 a.m. EST Thursday.

-- The CFTC is scheduled to release its weekly commitments of traders report at 3:30 p.m. EST Friday.


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


(END) Dow Jones Newswires

03-01-22 1550ET