By Kirk Maltais
--Corn for May delivery fell 0.7%, to $6.54 1/2 a bushel on the Chicago Board of Trade on Tuesday, dropping as farmers aggressively sell their inventories from last year and the crude oil rally from yesterday fades.
--Wheat for May delivery fell 0.3% to $6.91 3/4 a bushel.
--Soybeans for May delivery fell 0.2% to $15.20 a bushel.
HIGHLIGHTS
Engaged in Commerce: Corn futures were pressured in trading as farmers aggressively sold their crop - both old crop and their crop that hasn't been planted yet. "There was some increase in U.S. farmer selling as cash prices neared $7.00 [a bushel]," said Steve Freed of ADM Investor Services in a note. "They are still reluctant sellers of new crop." The USDA released its first Crop Progress report yesterday afternoon, which showed U.S. corn planting is 2% complete, which is on pace with this time last year.
Taking Cues: The rally in crude oil subsided in trading on Tuesday - which in turn applied pressure to grains, said Sterling Smith of AgriSompo. "The umbrella of the crude rally that lifted a lot of commodities is wearing off," he said, with corn and soybeans catching a lot of this pressure due to their exposure in the biofuels industry. The surprise weekend announcement by OPEC+ of a 1.16 million barrels-per-day cut was the catalyst behind Monday's strength in crude oil prices.
INSIGHT
Back in Time: Prices for domestic wheat in Russia fell to their lowest level since 2019, said SovEcon in a note. The firm says that wheat sold in the country is going for roughly 11,550 rubles a ton - which translates to about $145 a ton. That's the lowest their domestic wheat has sold for since November 27, 2019, according to SovEcon. Dropping domestic prices comes as the Russian government looks into setting prices for its wheat exports, which has been a source of support for global futures.
Passing the Billion Mark: Sales of E15 - an ethanol-fuel blend of 85% gasoline and 15% ethanol - have surpassed one billion gallons, totaling 1.02 billion gallons in 2022, according to data compiled by the Renewable Fuels Association. The RFA said that this total for the year is a record high, and up 26% from 2021. Difficulties replicating those sales could occur in 2023, the RFA said, because of waivers that allowed for the easier sale of E15 fuel during the summer months of 2022 not extending into 2023 without EPA intervention. "The only practical solution in the near term is for waivers to be issued nationally again this summer," said Scott Richman of the RFA in a note.
Darkening Mood: U.S. farmers are growing worried in the wake of the banking crisis that swept the financial world last month. In a monthly survey performed by Purdue University and CME Group, farmer sentiment was shown to have weakened, with macro concerns a key issue for those surveyed. Respondents cited rising interest rates and weaker prices for key commodities for their declining sentiment, said James Mintert of Purdue University. "Although the March survey did not include any questions directly related to the bank closures, during an open-ended comment question posed at the end of each survey, multiple respondents voiced concerns about the banking sector's problems and its potential to hurt the economy," he said.
AHEAD
-Conagra Brands Inc. will release its third-quarter earnings report at 7:30 a.m. ET Wednesday.
--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 CBOT will be closed in observance of Good Friday, returning to normal service on Monday.
Write to Kirk Maltais at Kirk.Maltais@WSJ.com
(END) Dow Jones Newswires
04-04-23 1543ET
