By Kirk Maltais


--Wheat for December delivery fell 2.6% to $8.63 a bushel on the Chicago Board of Trade Monday, leading grains lower in reaction to the U.S. Index rising to a fresh 20-year high today.

--Corn for December delivery fell 1.6% to $6.66 1/4 a bushel.

--Soybeans for November delivery fell 1% to $14.15 a bushel.


HIGHLIGHTS


Outside Markets Weigh on Grains: Concerns about slowing global economic growth and a high U.S. dollar pressured grains today. "The outside markets are all negative with the equity and energy market trading lower and the dollar making new contract highs again last night," said Tomm Pfitzenmaier of Summit Commodity Brokerage in a note. Wheat is typically more affected by moves in the U.S. dollar than other grains, due to the importance of the dollar's strength in determining export demand. The USD Index traded up over 1% today.

Harvest Moon: Weather conditions in crop-growing areas are expected to be supportive for farmers in the process of harvesting their crops, said DTN. "Conditions will be mostly favorable for corn and soybean harvest," says the firm regarding conditions in the Midwest - with a similar outlook seen for crops in the Northern Plains and the Central/Southern Plains. Rainfall is expected to be minimal, although the remnants of Hurricane Ian are expected to travel through the Corn Belt - which will provide some scattered rainfall. A lack of obstacles to harvesting allowed grains room to sag.


INSIGHTS


Looking Ahead: Grain traders are looking towards the USDA's quarterly stocks report on Friday to get an update on how tight inventories are - and are positioning themselves ahead of the report's release. "The strong dollar and high VIX create headwinds for the grain and oilseed markets, even though fears of tight supplies linger," said Arlan Suderman of StoneX in a note.

Growing Interest: Running counter to overall commodity markets, open interest in grain futures is growing, said J.P. Morgan's commodity research division in a note. The firm reports that open interest in grain commodities has now grown for three consecutive weeks, rising $2.3 billion in the past week to a three-month high of $284.2 billion. Meanwhile, other commodity markets sank, with the overall complex losing $43 billion and falling to $1.15 trillion - its lowest value since February 2021. Declines in oil and energy open interest is the main driver for the decrease.

Grain Export Inspections Slip: Export inspections for U.S. row crops fell from the previous week, with corn and soybean inspections falling below trader estimates. In its latest grain export inspections report, the U.S. Department of Agriculture said that corn inspections totaled 459,420 metric tons for the week ended Sept. 22, versus 549,476 tons the previous week. Soybean inspections totaled 257,547 tons versus 519,698 tons last week, and wheat inspections totaled 520,464 tons versus 836,620 tons previously. For corn and soybeans, inspections fell below analyst estimates, said Futures International in a note following the report's release.


AHEAD


--Cal-Maine Foods Inc. will release its first-quarter earnings report after the stock market opens on 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 USDA will release its quarterly Hogs and Pigs report at 3 p.m. ET Thursday.


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


(END) Dow Jones Newswires

09-26-22 1507ET