By Kirk Maltais


--Wheat for December delivery fell 2.7% to $6.01 1/2 a bushel on the Chicago Board of Trade on Tuesday, pressured by weaker domestic and export demand in Russia.

--Corn for December delivery fell 1.8% to $4.87 3/4 a bushel.

--Soybeans for November delivery fell 1% to $13.92 a bushel.


HIGHLIGHTS


Eyes on Russia: The average price for Russian wheat is in a downtrend, ending 12 weeks of gains, SovEcon said in a note. "The demand from the domestic wheat buyers is declining," SovEcon said. "Exporters are also purchasing less, likely having secured sufficient stocks for upcoming shipments." A better outlook for Russia's wheat harvest is also a factor pressuring prices and is exerting influence on wheat prices across the globe.

Stopping for a Breath: The share of U.S. crops in good or excellent condition fell, albeit less than expected by grain traders. Through the week ended Sunday, traders had predicted sizable quality declines on hot weather that hit the Corn Belt. Corn in good or excellent condition dropped 2 points to 56%, soybeans fell 1 point to 58%, and spring wheat fell 1 point to 37%. "The more modest fall in U.S. summer row crop ratings caused CBOT futures to retake some recent gains," AgResource said in a note.

Fresh Flashes: The USDA announced a new round of flash sales, covering soy products. The agency said 246,100 metric tons of U.S. soybeans were sold to unknown destinations for delivery in the 2023/24 marketing year. Additionally, 105,000 tons of soybean cake and meal were also sold to unknown destinations in 2023/24. Traders have been hopeful for better export demand prospects, backed up by consecutive days of flash sales.


INSIGHT


Pressure Point: Grain traders consider last week's heat wave in the Corn Belt as more adverse for soybeans than corn. However, traders are reconsidering how much tempered soybean production in the US would affect the world market. "The United States soybean balance sheet puts pressure up on prices, but still we expect Brazil and Argentina combined to have a record production next year," Jake Hanley of Teucrium Trading said.

Dropping Back: Daily ethanol production in the US may be down to May levels in tomorrow's EIA report. Analysts surveyed by Dow Jones predict output of 985,000 to 1.03 million barrels a day for the week ended Aug. 25. The last time daily production was below 1 million barrels was three months ago. Inventories are likely to hover around the 22.8 million barrels of the last report; the analysts predict 22.4 million to 23 million barrels.


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

--The USDA will release its monthly Agricultural Prices report at 3 p.m. ET Thursday.


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


(END) Dow Jones Newswires

08-29-23 1539ET