By Kirk Maltais


--Wheat for December delivery fell 1.9% to $5.84 1/2 a bushel, on the Chicago Board of Trade on Monday, with Russia's dropping export price and general caution ahead of tomorrow's USDA WASDE report pressuring prices.

--Soybeans for November delivery rose 0.5% to $13.70 3/4 a bushel.

--Corn for December delivery rose 0.5% to $4.86 1/4 a bushel.


HIGHLIGHTS


Off a Cliff: While corn and soybeans felt some pressure in early trading due to caution ahead of tomorrow's WASDE report, wheat futures took a bigger hit due to Russian export prices continuing to fall in an effort to spark demand. "Down yet again on falling Russian export prices and weaker European futures," says Charlie Sernatinger of Marex in a note. U.S. wheat futures have been susceptible to overseas price movement, with prices needing to match what Russia is offering in order to direct demand to American farmers.

Water Falls: Rainfall seen in some areas of the U.S. Corn Belt applied various amounts of pressure to grain futures in today's session. For wheat, precipitation seen coming into this week is expected to remain through the week, giving the crops a drink ahead of the start of harvest season, said StoneX in a note. The firm adds that temperatures are expected to then turn around and go back higher after the next two weeks - re-applying a lift for futures.


INSIGHT


Looking for the Upside: Wheat futures fell today, but increasing supply issues are coming from growing areas in the Southern Hemisphere - particularly in Argentina and Australia, where drought conditions have afflicted most of the crops grown in both countries. "Wheat crops in both Argentina and Australia are suffering with challenging weather in the past few months, which has been hindering the yield potential in both countries," said Alef Dias of Hedgepoint Global in a note. However, Dias notes, fund investors hold a large short position in wheat futures - which is both pressuring current prices but may create large upside for prices if a wave of short-covering hits.

End of the Line: Brazilian farmers are close to finishing their harvesting work for the country's winter corn crop, agricultural consultancy AgRural said in a research note. As of September 7, harvesting was complete on 93% of the estimated area planted with the crop, up from 88% a week earlier. On the same date a year ago the harvest was already finished, AgRural said. Planting of Brazil's summer corn crop also advanced, with farmers finishing sowing 17% of the expected area planted, in line with the level on the same date last year, the consultancy said. What happens with Brazil's crops directly affects the competitiveness of U.S. grain exports.

Hitting a High: Open interest in agricultural trading rose to its highest level in six weeks, JPMorgan Global Commodities Research said in its weekly commodity markets positions and flows report. Open interest in agriculture is up to $316.4 billion for the week ended September 8, which is up $3 billion from the previous week, a 1% uptick. Open interest in overall commodity markets is also up, rising to its highest level in over a year at $1.33 trillion - driven largely by an uptick in open interest in crude oil alone, rising $24.1 billion to $403.2 billion.


AHEAD


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

--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 U.S. Drought Monitor will release its updated map at 8:30 a.m. ET Thursday.


Jeffrey Lewis contributed to this article.


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


(END) Dow Jones Newswires

09-11-23 1526ET