By Kirk Maltais


--Soybeans for January delivery rose 0.6% to $9.91 1/2 a bushel on the Chicago Board of Trade on Tuesday, as a strong uptick in soybeans being crushed in the U.S. offset the pressure coming from wet weather in Brazilian growing areas.

--Wheat for March delivery rose 0.2% to $5.48 1/4 a bushel.

--Corn for March delivery fell 0.1% to $4.32 1/4 a bushel.


HIGHLIGHTS


Crushed Soy: The USDA reported a large rate of soybeans crushed at 215.8 million bushels in October, up from 186.5 million bushels in September. This supported the uptick soybeans saw throughout the day, offsetting the rainfall that is supporting Brazil's rapidly-growing crops, said Charlie Sernatinger of Marex in a note.

Opportunity Cost: Russia's cut of its 2025 wheat export quota supported CBOT wheat futures for much of the day, as traders see a competitive opportunity if Russian wheat pulls back from the world market. Russia's quota starting Feb. 15 will be 11 million metric tons, down from 29 million tons in 2024. Russia also announced an 18% increase in the export tax starting Dec. 4, likely pointing more demand to the EU, said Commerzbank in a note. "The lower Russian exports from mid-February could therefore lead to an increase in the EU wheat price," said the firm.


INSIGHT


Many Unknowns: The many open questions seen for grains continue to linger as a point affecting grain futures values, said Tomm Pfitzenmaier of Summit Commodity Brokerage. "The trade continues to watch the South American weather situation and tries to figure out what the new U.S. administration's trade policies will be," said Pfitzenmaier in a note. He added that for soybeans, extended rallies will likely give way to waves of selling from farmers, and if optimal growing weather in South America continues there will be additional pressure.

Slowing the Flow: The precipitous drop-off in average income for U.S. farmers is seen as having slowed considerably in 2024, with net farm income expected to fall 4.1% from 2023, totaling $140.7 billion. This comes after farm incomes dropped 19.5% from 2022 to 2023, with 2022 being a record high of $181.9 billion. Even with record crop sizes, farmer's finances are struggling with high input costs. "Heading into spring planting, farmers are facing tighter budgets," said Curt Covington of AgAmerica. "Input costs like fertilizer and pesticides are stabilizing, but labor and equipment costs remain high. To adapt, many are cutting non-essential expenses, focusing on cash flow, and exploring ways to diversify income streams."


AHEAD


--Hormel Foods Corp. will release its fourth-quarter earnings report before the stock market opens 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.


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


(END) Dow Jones Newswires

12-03-24 1550ET