By Paulo Trevisani

--Wheat for May delivery fell 1% to $6.46 1/2 a bushel on the Chicago Board of Trade on Monday, as a stronger U.S. dollar makes American grains less competitive.

--Soybeans for May delivery rose 0.3% to $14.33 3/4 a bushel.

--Corn for May delivery rose 0.3% to $5.47 a bushel.

HIGHLIGHTS

Greenback Smackdown: Wheat inspections for export rose, but futures prices slid mainly because of a strong dollar, Jack Scoville of Price Futures said. Fears of losses in production because of lower-than-usual temperatures are already priced in, Mr. Scoville said. "The actual damage will take some time to see under warmer temperatures, and it might take until harvest to see the full effects of the recent extreme cold," he said. "We are affected by the higher U.S. dollar and the fact that early harvest is underway in the southern Great Plains."

Bullish Exports: The USDA revised corn and soybean export inspections data higher for the week ended Feb. 25, as markets remain focused on adverse weather in South America, said Terry Reilly from broker Futures International, adding "that's probably limiting some losses in the corn market," while soybeans are also benefiting from late harvest in Brazil. The USDA reported 1.5 million metric tons of corn and 588,000 metric tons of soybeans inspected in the week ended March 4.

INSIGHT

Liquid Asset: Rain is expected to help Argentina's soy crop starting next week, but for now dry weather is boosting soybean prices. RJ O'Brien expects rain to substantially reduce dry areas in the South American nation but notes that "forecast confidence (is) low given erratic models." Besides the weather, high inflation in Argentina is likely to divert potential exports to domestic consumers, further reducing supplies for global trade. Meanwhile, the USDA said inspections for exports of soybeans dropped last week to nearly half the level seen the week before.

Wash Out: Excessive rain keeps hammering Brazil's soy farms, with only 35% of this year's production harvested as of last Thursday, down from 49% a year ago and the lowest level for the period since the 2010/11 crop, Brazilian agricultural consultancy AgRural said. "Precipitation worsens the delay that has been going on since the sowing season, which was hurt by lack of humidity," AgRural said. Excess humidity now is also creating a transportation problem, as grains need more time to dry, leading to longer waiting time for truckers.

AHEAD

--The USDA will release its monthly 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 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

March 08, 2021 15:39 ET (20:39 GMT)