By Kirk Maltais


--Soybeans for March delivery fell 1% to $10.39 a bushel on the Chicago Board of Trade Tuesday, with traders digesting Monday's WASDE report and observing supportive weather for a record-sized soybean crop in Brazil.

--Corn for March delivery fell 0.3% to $4.20 1/4 a bushel.

--Wheat for March delivery fell 0.2% to $5.10 1/2 a bushel.


HIGHLIGHTS


Staying Healthy: A record-sized soybean crop emerging in Brazil is getting the weather it needs, with many growing areas receiving rainfall over the weekend and early this week. Northern and eastern Brazilian growing areas are expected to get the heaviest rains over the next 6 to 10 days, said Michael Cordonnier of Soybeans & Corn Advisor Inc. in a note. Planting is essentially done in Brazil, with early harvesting already starting, said Cordonnier. A strong showing out of Brazil is expected to keep a lid on global soybean prices.

Absorbing the Impact: The surprise in Monday's WASDE report was still felt Tuesday, with the complex trading lower throughout the day. The USDA didn't trim views for the 2025 crop as expected, but instead said that more bushels than expected are sitting in farmer bins. "Yesterday was a triple whammy bearish report for corn, beans and wheat," said Naomi Blohm of Total Farm Marketing in a note.


INSIGHT


Important Indicator: Crude futures are higher for a fourth session after President Trump said the U.S. will impose tariffs on countries doing business with Iran. "Investors are hedging against the risks of Brent's rally continuing at its fastest pace since the joint U.S.-Israeli attack on Iran last summer," Alex Kuptsikevich of FxPro says in a note. The latest sanctions could bring about a supply crisis, or rekindle the trade war between the U.S. and China with negative impact on global growth and demand, he said. How crude oil trades is a factor that moves grain futures, as both corn and soybeans are feedstocks for biofuel ingredients.

Selling Soy: The USDA reported new flash sales of U.S. soybeans this morning, with 168,000 metric tons sold to China for delivery in the 2025/26 marketing year, and 152,404 tons sold to Mexico for 2025/26 delivery. The notice comes after Monday's WASDE reduced the outlook for soybean export sales by 60 million bushels. That's a reduction of roughly 1.63 million tons.

Finding a New High: Analysts surveyed by Dow Jones speculate that the EIA may report a new record-high for average daily ethanol production, adding to the acceleration seen in ethanol output over the past few months. Analysts said that average daily production could land as high as 1.15 million barrels a day, beating the current record of 1.131 million barrels a day reported by the EIA in the second week of December. Analysts also forecast ethanol stocks to rise, potentially crossing the 24 million barrel mark for the first time since last July.


AHEAD


--The EIA will release its Weekly Petroleum Status Update 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 Monday.


Anthony Harrup contributed to this article.

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


(END) Dow Jones Newswires

01-13-26 1529ET