By Kirk Maltais
--Wheat for May delivery rose 1.7%, to $6.96 1/4 a bushel on the Chicago Board of Trade on Tuesday with grain traders reducing risk amid uncertainty over bank failures and rhetoric surrounding extension of the Black Sea Grain Initiative.
--Corn for May delivery rose 1.2% to $6.20 3/4 a bushel.
--Soybeans for May delivery rose 0.2% to $14.93 3/4 a bushel.
HIGHLIGHTS
Cashing Chips: Drama around the extension of the Black Sea Grain Initiative is continuing, and traders are aggressively covering their previous short positions in wheat, said AgResource in a note. "Funds are cashing their chips on short wheat," said the firm, adding that fund traders are unlikely to return to grains until there's more clarity about rising interest rates and the U.S. banking system. "'Risk aversion' stays elevated with traders wondering what the next thing that will break in the world financial system," said AgResource.
Big Time: The USDA reported Tuesday morning that China purchased 612,000 metric tons of U.S. corn, for delivery in the 2022/23 marketing year. The buy is large, and comes after grain traders digested March's WASDE, which said that U.S. corn ending stocks were expected to rise due in part to lower consumption of exports. This sentiment has helped pressure corn futures, which have shed nearly 11% in the past month.
INSIGHT
Accelerated Exports: Russia is projected to export roughly 4.2 million metric tons of wheat in March, research firm SovEcon said -- double what the county exported at this time last year. Russian exporters are expected to play catch-up in March, after the previous month was bogged down from increased winter storms. As a result, heavy Russian competition is expected to constrain U.S. prices. "Active wheat exports from Russia will continue to put pressure on global market prices," said SovEcon in a note.
Political Points: Donald Trump, who is running again for president in 2024, is including agriculture in his message for voters. "I was the most pro-farmer president that has ever been in the White House by far," Mr. Trump said, speaking at an event in Davenport, Iowa. Mr. Trump also took the opportunity to attack his expected chief rival in next year's primaries, Florida Governor Ron DeSantis. "He strongly opposed ethanol and fought against it at every turn," Mr. Trump said in his speech, referencing a bill sponsored by Mr. DeSantis in 2017 to end the Renewable Fuel Standard.
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 USDA will release its monthly Cattle on Feed report at 3 p.m. ET Friday.
--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
03-14-23 1610ET
