By Kirk Maltais


--Soybeans for July delivery fell 2.6%, to $13.64 1/2 a bushel, on the Chicago Board of Trade on Tuesday, with soybeans and soy products tumbling in response to weaker-than-expected economic data out of China.

--Wheat for July delivery fell 2% to $6.47 3/4 a bushel.

--Corn for July delivery fell 1.8% to $5.82 1/2 a bushel.


HIGHLIGHTS


Swing and a Miss: Grain futures slid in reaction to economic data out of China missing the expectations of analysts - with China's industrial production for April rising by 5.6% year-on-year, compared to expectations of over 10%. Other misses reported for April had analysts questioning China's demand. "China tossed a wrench into the short term agriculture bull machine by reporting poor April economic data that rippled into their currency valuation against the USD," said Terry Reilly of Futures International in a note. China's weak economic data sparked concerns of a deflation of their currency - which in turn may provide the U.S. dollar with a boost, making U.S. exports even less attractive on the world stage.

Big Haul: Yesterday's Crop Progress report, along with Friday's WASDE report, showed data giving analysts and traders an indication that grain futures will have supply-based pressure ahead. "The USDA crop progress numbers yesterday promote in the mind of the trade -in my view- that a big crop is more likely than not," said Mike Zuzolo of Global Commodity Analytics. The WASDE showed higher-than-expected ending inventories for corn and soybeans.


INSIGHT


Solid Spring: U.S. farmers have been able to continue their quickened pace for spring planting, according to the USDA's Crop Progress report released late yesterday, showing U.S. corn is 65% planted, while soybeans are 49% planted and spring wheat is 40% planted. Corn and soybeans are ahead of the 4-year average for this time of year, while wheat remains behind - although wheat has improved its status, now exceeding last year's pace of 37%. For corn and soybeans, the planting data shows a relatively uneventful spring for farmers, said Allen Douglass of StoneX.

Dropping Back: Weekly exports of wheat from Russia have fallen to their lowest level since the start of February, according to SovEcon. In a note, the firm said Russian wheat exports in the past week fell to 680,000 metric tons - which is well down 1.06 million metric tons the previous week. "The lower activity among traders may be attributed to the seasonal decline in demand for wheat, as many Russian wheat buyers are acquiring grain for shipment in the upcoming season," said Andrey Sizov of SovEcon. However, he adds, the drop in shipments is likely to be temporary.


AHEAD


--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 USDA will release its monthly cattle on feed report at 3 p.m. ET Friday.

--The USDA will release its monthly chickens and eggs report at 3 p.m. ET Friday.

--The CFTC will release its weekly commitment of traders report at 3:30 p.m. ET Friday.


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


(END) Dow Jones Newswires

05-16-23 1525ET