By Paulo Trevisani


--Wheat for December delivery fell 1.2% to $5.84 a bushel on the Chicago Board of Trade on Tuesday, as cheap Russian grains continue to hit export markets.

--Corn for December delivery rose 1% to $4.76 1/4 a bushel.

--Soybeans for November delivery fell 0.1% to $13.15 1/2 a bushel.


HIGHLIGHTS


Crop Conditions: Grains futures extended losses following Monday's USDA weekly report on crop conditions. The agency said good corn remained at 43% while excellent fell to 8% from 9%, which was less of a decline than expected. "The crop condition rating did not drop quite as much as many had expected," Summit's Tomm Pfitzenmaier said in a note. He added that some traders are expecting another leg lower in the corn market, amid "prospects for burdensome supplies along with mediocre demand." Soybeans conditions were also better than expected, Pfitzenmaier said.

Corn Bounces: Corn futures firmed higher after starting the day in the red. "US cash corn/soybean markets are starting to stabilize with basis bids firming amid the lack of cash grain movement," AgResource said in a note. It added that producers "prefer to place the grain in farm storage" and "are not willing to sell cash corn" for current prices. AgResource said that "farmers are hopeful that cash bids stay cheap through October to collect their revenue insurance checks."


INSIGHT


Russian Hit: Wheat fell as Russian supplies hit global markets. RCM's Doug Bergman said in a note that "cheap offers out of Russia continue to weigh on [wheat] global prices." But Bergman pointed out that "at some point, they're likely to run out of wheat to export." He advised: "Be patient with sales and look to re-own previously sold bushels."

Macro Risks: The global economy is slowing and that will likely weaken commodity prices. Risks to global growth, in turn, stem from, among other factors, higher interest rates meant to curb demand and tame inflation. "Slowing global growth combined with extreme weather and inventory situations has created a more mixed situation for agricultural commodities," Apollo's chief economist Torsten Slok said in a report. He noted that a possible rise on energy prices could "magnify the ongoing slowdown in growth and reverse the ongoing decline in inflation."


AHEAD


--General Mills will release its first-quarter earnings at 7 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 US Drought Monitor will release its updated map at 8:30 a.m. ET Thursday.

--The USDA will release its monthly Livestock Slaughter report at 3 p.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

09-19-23 1502ET