By Dan Molinski
--Wheat's most-active contract that expires in March fell 2.1%, to $7.75 1/2 a bushel, on the Chicago Board of Trade on Tuesday, helped by rains in South America that boosted global supply outlooks.
--Soybeans' March contract declined 2% to $14.92 1/4 a bushel.
--Corn for March fell 1.2% to $6.70 1/2 a bushel.
HIGHLIGHTS
Grains Grind Lower: The grains complex fell broadly on the CBOT, and by a relatively hefty amount amid "better than expected weekend rains in Argentina as well as lower European wheat markets," said Doug Bergman of RCM Alternatives in a note, stating the Argentine rains specifically hit dry spots that needed the moisture, which stabilizes production there for now. Still, Mr. Bergman adds: "Rains over the weekend were beneficial for Argentina, but won't do much if the dry trend resumes."
Inspections in Retreat: Export inspections for U.S. corn, soybeans and wheat all saw a holidays-induced slowdown last week versus the week prior. In its latest grain export inspections report, the U.S. Agriculture Department said corn export inspections totaled 667,010 metric tons for the week ended Dec. 29, while soybeans inspections fell to 1.46 million tons, and wheat inspections totaled 85,672 tons. Each of those three totals are lower than that reported last week by the USDA.
China was the leading destination for U.S. soybeans, with nearly 900,000 tons. China was also the leading destination for corn, receiving more than 280,000 tons of U.S. corn, while Mexico received about 145,000 tons of U.S. corn. Mexico was the leading destination for U.S. wheat, receiving some 67,000 tons.
INSIGHT
Rains and Meal: "The soybean complex was mostly supported by the strength in the meal market," said Summit Commodity Brokerage in a research note. "Argentina is a major producer of meal, so any crop problems there will directly affect the availability of meal on the world markets. Recent rainfall amounts have been less than what is needed, so the weather forecast going into early 2023 will be the primary driver for soybean prices. While it is true that the Brazilian and other South American countries are on track to produce a crop that could potentially offset any losses in Argentina, that will not help satisfy the world's needs for meal."
AHEAD
--The USDA will release its monthly grains crushings report at 3 p.m. ET Tuesday.
--Conagra Brands Inc. will release its second-quarter 2023 earnings report at 7:30 a.m. ET Thursday.
--The EIA will release its weekly ethanol production and stocks report at 11 a.m. ET Thursday.
--The USDA will release its weekly export sales report at 8:30 a.m. ET Friday.
-The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.
Write to Dan Molinski at dan.molinski@wsj.com
(END) Dow Jones Newswires
01-03-23 1456ET
