By Kirk Maltais


--Corn for July delivery fell 2%, to $5.99 3/4 a bushel, on the Chicago Board of Trade on Monday, as traders attempted to gauge what recent weather patterns have meant for the new corn crop.

--Soybeans for July delivery fell 0.3% to $13.49 3/4 a bushel.

--Wheat for July delivery rose 0.9% to $6.25 a bushel.


HIGHLIGHTS


Leading the Way: Corn got the brunt of the selling among row crops today, with fund traders seen as getting their positions in order ahead of a potentially tough growing season this summer. "Old crop corn is the biggest loser," said Sterling Smith of AgriSompo. "With few buyers going forward there is little reason to own at this point." Prices for U.S. grain exports have been seen as being too high versus exports from other sources, while U.S. farmers have been reluctant to lock in sales of new crop on hopes of higher prices going forward.

Pulling Back: Although the Black Sea Grain Initiative was extended for another 60 days last month, grain traders are worried that recent comments by Russia may this time result in their withdrawal from the deal - although ideas about that remain unclear, said Craig Turner of StoneX in a note. "Russia is saying they don't see a way the Grain Export Corridor deal gets extended past July - the market sees this as a negotiating tactic for now," Turner said. "The trade will take a 'wait and see' approach to the Russia/Ukraine negotiation for Black Sea exports before taking a heavy position either way."


INSIGHT


Weather Questions: Traders spent much of the day pondering if too much weather premium was added to futures last week. "The market bid in a lot of weather premium late last week and while the forecast is still somewhat dry, it's apparently not dry enough to spark buying to keep the market moving higher for now," said Doug Bergman of RCM Alternatives. Isolated rainfall was reported throughout the U.S. Corn Belt, says DTN in a note this morning. However, hot weather was also reported in areas like the Midwest.

Cause and Effect: The USDA's Crop Progress report is due out late afternoon, and expected to show what the effect of dryness in crop-growing areas in recent weeks is. The USDA data may confirm growing problems with U.S. Corn Belt crops. "Reports are widespread of Midwest wheat unable to fully tap nitrogen, rolling corn and soybean seed that did not germinate or prematurely died," said AgResource in a note. Even so, planting is expected to be shown as essentially complete, according to analysts - although the condition of crops are expected to decline.


AHEAD


--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 USDA will release its monthly world supply and demand report at noon ET Friday.

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


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


(END) Dow Jones Newswires

06-05-23 1557ET