By Kirk Maltais


-- Soybeans for July delivery fell 1.3% to $14.17 1/2 a bushel on the Chicago Board of Trade on Tuesday after the USDA confirmed that farmers are planting their corn and soybean crops faster than their average pace.

-- Wheat for July delivery fell 0.6% to $6.54 1/2 a bushel.

-- Corn for July delivery were virtually unchanged at $6.06 3/4 a bushel.


HIGHLIGHTS


Ahead of the Curve: Planting for corn and soybeans is accelerated this spring, according to the USDA's latest Crop Progress Report. The government says corn planting is 14% complete versus the four-year average rate of 11%, while soybeans are 9% complete versus the four-year average of 4%.

The upticks were roughly in line with what traders expected, Doug Bergman of RCM Alternatives said in a note.


Tighter Dollar: The U.S. dollar again had a strong effect on commodities as a whole Tuesday, with most falling across all categories this afternoon. The U.S. dollar index is up 0.5%, with concerns about a looming recession affecting the flow of money into commodities, particularly crude oil.

"More and more recession talk is and will take a toll on oil demand," said Ira Epstein of Linn & Associates in a note.

The Federal Reserve will announce its decision on interest rates May 3, which will guide the direction of trading.


INSIGHT


Poor Showing: Increasing damage to the U.S. winter wheat crop, along with slower-than-usual planting of spring wheat, was a source of support for CBOT wheat futures, although not enough to keep the contract above water through trading Tuesday.

The USDA reported the winter wheat crop quality is at 26%, the lowest it has been since 1989, according to AgResource. The firm adds that while rainfall is expected in dry states such as Kansas and Texas, it isn't clear how much good that will do crop health.

Meanwhile, spring wheat is only 5% planted, versus the four-year average pace of 12%, the USDA reported.


Staggered Effect: Cold weather seen in many areas of the Corn Belt isn't having an immediate effect on grains.

"Do we have a bull story developing with the cold weather? Maybe, but it likely takes until the middle of May to gain any traction," said Allen Douglass of StoneX in a note.

While additional frost events are forecast across the Midwest this week, the USDA's Crop Progress Report showed corn and soybean planting is proceeding ahead of schedule. Spring wheat is behind schedule.


AHEAD


-- Bunge Ltd. is scheduled to release its first-quarter earnings report on Wednesday.

-- Pilgrim's Pride Corp. is due to release its first-quarter earnings report on Wednesday.

-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EDT Wednesday.


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


(END) Dow Jones Newswires

04-25-23 1530ET