By Kirk Maltais


--Corn for March delivery fell 0.7%, to $6.74 a bushel, on the Chicago Board of Trade on Tuesday as traders jockeyed for position ahead of Wednesday's WASDE report from the USDA.

--Soybeans for March delivery fell 0.4% to $15.15 1/4 a bushel.

--Wheat for March delivery fell 0.1% to $7.49 3/4 a bushel.


HIGHLIGHTS


Prep Time: Traders devoted a lot of their moves bracing for the possibility of a negative surprise in the Wednesday WASDE report. "A non-bullish USDA report could cause… support levels to be tested by the weekend," said AgResource in a note. The firm added that a 'bullish' report may not be enough to spark a strong rally by traders, with grain futures already trading at relatively high levels.

Season of the Storm: Also applying pressure to CBOT grain futures is the expectation that a storm system seen in the middle of the country will provide some necessary moisture for crops already in the ground - and for those scheduled to be planted this spring. The storm is passing over the southern Midwest, and looks to deliver rainfall to farmers across the eastern Corn Belt through Thursday.


INSIGHT


Turning the Corner: While the 2022/23 wheat crop in Russia looks to be record-breaking , the 2023/24 wheat crop may have more issues hindering its development. That's because the key wheat-growing region in the southern part of Russia has only received 40% to 80% of its normal rainfall in the past three months, said SovEcon. While this has yet to make a noticeable impact on the Russian crop - with the Russian Ministry of Agriculture reporting 94% of wheat last month was in good condition - traders believe that will soon change if the weather stays dry.

Restrained Approach: Large investments into things like new machinery and new land are not being looked on favorably by farmers, said Purdue University and the CME Group in a release Tuesday. Surveyed farmers said that they expect to see higher input costs, making operation of their farms more difficult. "Just over 7 out of 10 survey respondents said they think now is a bad time to make large investments in their farm operation," said James Mintert of Purdue University in the report. While costs for fertilizer have come down in recent weeks, those prices are still abnormally high.


AHEAD


-Green Plains Inc. will release its fourth-quarter earnings report at 6:30 a.m. ET Wednesday.

-Bunge Ltd. will release its fourth-quarter earnings report before the stock market opens on Wednesday.

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

-The USDA will release its monthly world supply-and-demand report at noon ET Wednesday.

-The USDA will release its monthly world supply-and-demand report at noon ET Wednesday.

-Pilgrims Pride Corp. will release its fourth-quarter earnings report after the stock market closes on Wednesday.


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


Corrections & Amplifications

This item was corrected at 4:06 p.m. ET. The first sentence implied that traders on Wednesday were bracing for the possibility of a negative surprise in the upcoming WASDE report. They were bracing for Wednesday's report today.

(END) Dow Jones Newswires

02-07-23 1532ET