TOP STORIES: 



  Corn Declines as Weather Cuts Short Covering 


  Corn for July delivery fell 1.9% to $3.27 1/2 a bushel on the Chicago Board of Trade Tuesday, with traders halting their short-covering spree as USDA crop progress data shows a healthy crop, and future weather conditions don't look like they will disrupt matters. 


  WASDE Expected to Show Decreased Wheat Production -- Market Talk 


  14:42 ET - The USDA's monthly WASDE report, scheduled for release at noon Thursday, is expected to show a continued decline in US wheat production in 2020/21. Analysts surveyed by The Wall Street Journal say that they expect 2020/21 wheat production to total 1.85 billion bushels. This is 14 million bushels lower than the agency's forecast last month, and nearly 70 million bushels lower than last year's production. This should help fuel wheat prices higher in the longer term, but today CBOT wheat prices sank 1.5% as other factor pressured futures. "Harvest hedging, lower European prices, and chart selling took us down," says Charlie Sernatinger of ED&F Man Capital. (kirk.maltais@wsj.com; @kirkmaltais) 


  STORIES OF INTEREST: 


  Weaker USD Keeps Grain Losses in Check -- Market Talk 


  13:02 ET - Grain futures on the CBOT are trading lower, in reaction to better crop conditions reported by the USDA Monday and weather reports showing good conditions for the growth of nascent 2020/21 crops. However, losses for grains futures are being held in check by the continued weakening of the US dollar. The USD index is trading lower on the Intercontinental Exchange, which will make it 11 out of the past 12 sessions that the dollar has lost ground if it finishes lower today. "The Dollar has fallen back on the defensive early this week which has kept further wheat losses in check," says RJO Futures, citing this as beneficial for US wheat futures particularly. Wheat futures are down 2.1%, while corn is off 1.8% and soybeans slip 0.4%. (kirk.maltais@wsj.com; @kirkmaltais) 


  Brazil Corn Crop Growing as New Areas Planted -- Market Talk 


  0814 ET - Brazil's new corn-growing frontier in northern and northeastern states is boosting the country's total output of the crop. The states of Bahia, Sergipe, Alagoas, Pernambuco and Roraima all grow corn in a similar period as countries in the northern hemisphere, and government agricultural agency Conab has designated their output as a third crop, after the usual summer and winter crops. Conab raised Tuesday its forecast for production in the third crop to 1.33 million metric tons, from the May forecast of 1.17 million tons. Conab forecast a total corn crop of 101 million tons for 2019-2020. (jeffrey.lewis@wsj.com) 


  THE MARKETS: 


  Cattle Finishes Higher, Hogs Slump -- Market Talk 


  15:18 ET - Live cattle futures on the CME finish up 1.5% at 97.8 cents per pound, while lean hogs fell 1.9% to 52.975 cents per pound. Both commodities are being affected by an influx of freshly slaughtered animals, although traders appear to be reacting to this differently. "This week's kill could exceed year ago levels, with higher carcass weights due to the backup caused by coronavirus-driven plant closures this spring," says Arlan Suderman of INTL FCStone. (kirk.maltais@wsj.com; @kirkmaltais)