By Paulo Trevisani

--Wheat for December delivery fell 2.2% to $5.91 1/4 a bushel on the Chicago Board of Trade on Monday, offsetting Friday gains as traders turned more pessimistic about future demand while supplies keep flowing through the Black Sea.

--Soybeans for November delivery fell 1.8% to $13.16 3/4 a bushel.

--Corn for December delivery fell 1% to $4.71 1/2 a bushel.

HIGHLIGHTS

Black Sea Tension: Wheat gave back some of Friday's gains. AgResource analysts said in a note that Black Sea grain flows were weakening wheat prices, while in the U.S. "harvest efforts remain unobstructed by weather." AgResource also mentioned reports of "elevated Ukrainian corn loadings," last week. "Ukrainian exports are rising, not falling, but Russian drone/missile attacks persist," AgResource says, adding a note of caution: "Black Sea military tension remains elevated."

Harvest Pressure: Soybean futures extended their pre-market losses despite a flash-export sale notice. The USDA reported sales of 123,000 metric tons of soybeans for delivery to China during the 2023/2024 marketing year. On the other hand, Brazil's record soybean exports also weighed on markets. RCM's Doug Bergman said in a note that beans are selling "after a poor crush number on Friday and heavier than expected deliveries" against the September contract, which he said drove prices lower to finish the week. "The US bean supply outlook is extremely tight, but anticipation of harvest pressure is limiting buying interest in the near-term."

INSIGHT

Weather Worries: Grains markets worried about the economy and weather conditions. The U.S. Fed is expected to keep rates high this week and beyond, in an effort to weaken demand to tame inflation. Some pundits fear this could result in recession. Beyond that, "low water levels on the Mississippi River and Panama Canal" are risks to be watched, CoBank's Kenneth Zuckerberg said in a note. He also listed hurricane activity and the risk of a government shutdown as potential threats to agriculture markets. "We are also closely watching oil prices...and continued Chinese military activity near Taiwan's airspace," Zuckerberg said.

Planting Picks Up: Brazil's soybean planting season is going faster than a year ago, AgRural analysts said in a note. They reported that the area for the 2023/24 crop reached 0.2% of the estimated total as of last Thursday, compared to 0.1% in the same period a year earlier. A lack of rain and high temperatures are delaying planting in Mato Grosso state. More to the south, Parana state is leading the planting season. AgRural said Parana farmers are encouraged by better soil moisture, although weather is feared to be less favorable this week.

AHEAD

--General Mills will release its first-quarter earnings at 7 a.m. ET Wednesday.

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

--The USDA will release its monthly Livestock Slaughter report at 3 p.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 Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

September 18, 2023 15:20 ET (19:20 GMT)