By Kirk Maltais


--Corn for December delivery fell 3.7% to $4.21 1/2 a bushel on the Chicago Board of Trade on Monday, with the outlook for weather in crop-growing areas stable as new tariff rules hit major export buyers.

--Soybeans for November delivery fell 2.7% to $10.21 1/4 a bushel.

--Wheat for September delivery fell 1.4% to $5.49 1/2 a bushel.


HIGHLIGHTS


Strong Showing: Supportive weather in U.S. growing areas is seen as keeping crop conditions steady, which was the primary factor weighing down CBOT grain futures throughout the day, analysts said. Extended weather forecasts are pointing to "some heat showing up in late July, but the majority of the corn will be pollinated by then," AgMarket.net said in a note. "Crop conditions across the U.S. look to be steady to a little better this week."

Left Wanting: Grain traders were anticipating a major agriculture-related announcement when President Trump said he would be giving a speech in Iowa last week. But that speech came and went without any market-changing news, which also bogged down CBOT futures throughout the day. "I think non-threatening weather and the disappointment regarding Trump's speech in Iowa are weighing heavy on futures," Agrisource's Linda Meyer said. Meyer added that algo trading controlled the market today.


INSIGHT


Assessing the Damage: The tariffs of 25% on Japan and South Korea may hit U.S. corn demand. That's because both countries are major buyers of U.S. ag exports. According to data from the USDA, Japan has committed to purchasing more than 12 million metric tons of corn this marketing year, and South Korea is on the books for 5.9 million tons. That's up from the same time last year, supporting elevated corn shipments out of U.S. ports reported by the USDA this year. The implementation of tariffs by the U.S. may put these corn sales at risk, AgResource said in a note.

Above Average: The USDA said corn inspections for the week ended July 3 totaled 1.49 million metric tons. That's up from 1.38 million at this time last week, and the 1.02 million seen at this time last year. Year-to-date shipments of corn out of U.S. ports remains well above the level seen at this time last year, according to USDA data. Corn shipments are up 30% from the prior marketing year, to 56.4 million tons.

Profit Margin: The bottom line for agricultural giant ADM may see a sizable boost from more-supportive soybean crush margins, according to a note from Jefferies. "The strength in crush margins is driven by strong RVOs proposed by the EPA as well [as] increased incentives to use domestic feedstock for biofuels," the firm said. The USDA forecasts record-high soybean crush volume this year, driven by biofuel and animal feed demand, which may bolster revenue for ADM. The company has previously reported that lower export sales made crush margins for soy considerably weaker.


AHEAD


--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.

--Conagra Brands Inc. will release its fiscal fourth quarter 2025 earnings report at 7:30 a.m. ET Thursday.

--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.


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

(END) Dow Jones Newswires

07-07-25 1554ET