By Paulo Trevisani


--Wheat for July delivery rose 1.8% to $6.01 1/4 a bushel on the Chicago Board of Trade on Tuesday as markets watch developments in the Middle East while dry weather threatens U.S. crops.

--Corn for July delivery rose 0.2% to $4.52 1/2 a bushel.

--Soybeans for July delivery fell 1.5% to $11.58 a bushel.


HIGHLIGHTS


Geopolitical Risk: Grain futures had a mixed session as markets focused on potential de-escalation in the Middle East. Hopes that U.S. and Iran officials will continue to negotiate a peace deal weighed on oil prices. While wheat and corn rose, soybeans fell as U.S. planting progressed at a record pace. AgResource said farmers expect seeding to be "active throughout the week as rain chances hold to western crop areas." However, geopolitical risks are still looming over the market. "New investment capital is not flowing into CBOT grains," AgResource said.

Adverse Weather: Wheat futures extended a recent rally stemming from dry weather conditions adverse to crops. Price Futures Group's Jack Scoville wrote that an increase in ending stocks reported last week by the USDA was due mostly to imports "but also a small cut to seed demand." He said that conditions were too dry in much of the U.S. Great Plains, and too wet in both the Midwest and Western Europe. "Expected rain systems this week in the Great Plains could bring relief to crops produced there," Scoville said.


INSIGHT


Preemptive Imports: Rising corn futures took a boost from U.S. exports to Mexico. The sale is spread over three marketing years, pointing to concerns from "at least one buyer that the war related reductions in global fertilizer supplies might lead to higher corn prices over the next couple years," StoneX's Arlan Suderman said in a note. The USDA announced 316,000 metric tons in export sales of U.S. corn for delivery to Mexico, with 65,000 tons for the 2025/2026 marketing year, 139,000 tons for the 2026/2027 period and 112,000 for 2027/2028. The USDA added that 120,000 tons of corn were reported for delivery to unknown destinations for the current season.

Weakening Dollar: The dollar weakened amid hopes of de-escalation in the Middle East. "On a trade-weighted basis, the dollar's wartime rally has now been fully unwound," Corpay's Karl Schamotta wrote. He said the war in Iran hasn't boosted the dollar as previous conflicts did, which is a sign of "mounting concern over the country's fiscal trajectory."


AHEAD


--The EIA will release its Weekly Petroleum Status Update 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 CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.


Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

04-14-26 1509ET