By Paulo Trevisani
--Wheat for May delivery rose 8.6% to $9.34 a bushel on the Chicago Board of Trade Monday,= as new sanctions against Russia jeopardized supplies and the war damaged Ukraine's export capacity.
--Corn for May delivery rose 5.3% to $6.90 3/4 a bushel.
--Soybeans for May delivery rose 3.3% to $16.36 3/4 a bushel.
Winds Of War: Markets are pricing in a longer war as Russia attacks Ukraine, StoneX's Craig Turner said, adding that sanctions amplify the conflict's fallout. "The US/EU has removed Russia from the SWIFT banking system and shuts them out from the grain export market for the time being." Turner said that, as Ukraine's export logistics have been damaged, "it begs the question if farmers will be able/willing to plant in only a matter of weeks."
Tight Market: "Ideas had been that the US will have good demand for [wheat] as the rest of the northern hemisphere is short production this year but so far demand has been average or less against previous years," Price Futures' Jack Scoville said. "Dry weather in southern Russia as well as the US Great Plains and Canadian Prairies caused a lot less production."
Flash Exports: The USDA reported flash export sales of 136K metric tons of soybeans to China for the 2022/2023 marketing year, and 120K metric tons of soybeans for delivery to unknown destinations in the 2021/2022 marketing year.
Stuck in Ukraine: The war could end up holding 13M metric tons of corn in Ukraine from global markets, AgriVisor's Karl Setzer said. "The question is if this will bring the US additional export business, or if importers will wait to see if South American corn can be shipped in a timely manner this summer." Escalating sanctions against Russia will also support prices for the time being, Setzer said. "The main factors trade is monitoring are new sanctions, including the decision to cut off Russia from world banking programs."
No Tender: Egypt canceled an international wheat tender after receiving just three offers amid the uncertainty in grain markets prompted by Russia's invasion of Ukraine. It is the second time in as many weeks that Egypt canceled a wheat tender. At a tender last week, it received just one bid, instead of the usual dozen bids or so. Russia and Ukraine together account for around 80% of Egypt's wheat imports, but the war has made shipping firms reluctant to operate in the Black Sea and halted Ukraine's seaborne exports.
-The USDA will release its monthly grain crushings report at 3 p.m. ET Tuesday.
--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.
--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.
--The CFTC will release its weekly commitment of traders report at 3:30 p.m. ET Friday.
--Will Horner contributed to this article.
Write to Paulo Trevisani at firstname.lastname@example.org; @ptrevisani
(END) Dow Jones Newswires