By Kirk Maltais


-- Wheat for May delivery fell 1.6%, to $7.11 a bushel on the Chicago Board of Trade on Monday as the contract continued to slide ahead of next month's expiration of the Black Sea Grain Initiative, along with snowfall in the U.S. over the weekend.

-- Corn for May delivery fell 0.9% to $6.44 1/4 a bushel.

-- Soybeans for May delivery fell 0.4% to $15.13 1/2 a bushel.


HIGHLIGHTS


White Out: While much of grain traders' focus is on the upcoming renegotiation of the Black Sea Grain Initiative, a winter storm that crossed through the Midwest over the weekend also pressured wheat futures Monday.

"Several large snowfalls in the Upper Midwest, Great Lakes region (and California), may prove to be well-timed, given the potential to alleviate drought conditions as spring planting season approaches," said Ken Zuckerberg of CoBank in a note.


Treading Water: Corn futures traded at their lowest level in two months, with traders seeing momentum for the contract limited, said Matt Zeller of StoneX in a note.

"Bullish fundamental help looks to be thin this week with export sales seasonally steady to lower, and Argentine crop failures generally thought to be priced in," Mr. Zeller added.

Monday's grain inspections report from the USDA didn't inspire hope for export demand, as corn inspections totaled 572,622 metric tons versus 623,795 tons last week.


INSIGHT


Drawing Near: The Black Sea Grain Initiative deal is due to expire March 19, but with increased aggression by Russia against Ukraine in the wake of the conflict's one-year anniversary, some traders are concerned that a nixed deal will strangle the flow of wheat from the region.

Still, Russian wheat exports have been aggressively priced, and many traders believe that Russia's behavior doesn't preclude the deal being renewed again.

"Traders are expecting the Black Sea grain corridor deal to be extended," said Terry Reilly of Futures International in a note.


Potential Turnaround: Grain futures on the CBOT traded lower for the majority of Monday's session, but are seen as potentially turning higher in the short-term, although unlikely to regain recent highs seen earlier this month.

"Longer-term price tops are in place for corn, wheat and soybean futures," said AgResource in a note, with the firm calling futures currently "oversold."

"Choppiness could follow as the world grain market waits to see if the Black Sea Grain Export Corridor Deal is extended."


AHEAD


-- The USDA is scheduled to release its annual cold storage summary report at 3 p.m. EST Tuesday.

-- The USDA is due to release its monthly agricultural prices report at 3 p.m. EST Tuesday.

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

-- The USDA is due to release its monthly grain crushings report at 3 p.m. EST Wednesday.


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


(END) Dow Jones Newswires

02-27-23 1555ET