By Paulo Trevisani


--Wheat for July delivery fell 3.5%, to $5.91 1/2 a bushel, on the Chicago Board of Trade on Monday, leading a broad decline in the grains complex.

--Soybeans for July delivery fell 1.9%, to $11.57 3/4 a bushel.

--Corn for July delivery fell 1.4%, to $6.12 3/4 a bushel.


HIGHLIGHTS


Seeking Lows: Grain futures fell to start a week shortened by Wednesday's holiday in the U.S. and as markets turn attention to weather conditions that may offer price support. AgResource said in a report that seasonal lows may be forming as farmers brace for excessive rain or dryness, depending on the region, potentially damaging for crops. "Trading lows should form early in the week," AgResource said, adding it expects flooding in the northwestern Midwest and lack of rain in the eastern Midwest. "This is no place to be making new sales," AgResource said.

Wheat Exports: An increase in export inspections last week wasn't enough to keep wheat futures from erasing more than a month worth of gains. The USDA reported 374,637 metric tons of wheat inspected for export sales in the week ended July 13, up from 352,402 in the previous period. "Wheat is hitting new lows again today as the market is working on pushing out any remaining speculative longs," RCM's Doug Bergman said in a note.


INSIGHT


Quick Pick: Brazil's second corn harvest, known as "safrinha," reached 21% of the planted area in the center-south region Thursday, up from 10% a week earlier, the highest share for this time of the year since records began in 2013, AgRural said in a note. It was only 5% a year ago. "Last week's hotter and drier weather accelerated the loss of the grains' humidity, boosting the harvesting work," AgRural said. Productivity has been good in the states of Mato Grosso and Goiás, while other states see "losses caused by periods of dryness and high temperatures," the firm said.

Brazilian Tax: Impending tax legislation in Brazil seems to be weighing down grain futures. AgResource said in a note that Brazilian farmers are selling their grains out of fear of a tax hike, adding that a proposal expected to be reintroduced later this week or next week could impose hefty levies. "The tax on farmers may not be 20%-23% but a few percentage points lower," AgResource said. Meanwhile, the firm added that Russian cash wheat prices are down. "The world wheat market is looking for demand with U.S. farmers not anxious to sell."


AHEAD


--The CBOT and USDA will be closed in observance of Juneteenth. Both will reopen on Thursday.

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

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

--The USDA will release its monthly Cattle on Feed report at 3 p.m. ET Friday.


Write to Paulo Trevisani at paulo.trevisani@wsj.com


(END) Dow Jones Newswires

06-17-24 1530ET