By Kirk Maltais


--Soybeans for January delivery rose 1.4%, to $14.80 1/2 a bushel on the Chicago Board of Trade on Tuesday, supported by dry weather lingering in Argentina this week.

--Corn for March delivery fell 0.2% to $6.52 1/2 a bushel.

--Wheat for March delivery fell 0.6%, to $7.50 a bushel.


HIGHLIGHTS


Weather Woes: Soybean futures led CBOT row crops higher, in part because of a dry outlook for weather in Argentina. The forecast has traders adding premium to soybeans and soy products, says AgResource in a note. "With the end of the spring-planting season approaching in mid-January, the market is getting concerned about how many acres Argentine farmers will seed," said the firm. Analysts add that if drought conditions continue in Argentina, farmers there may opt to plant more corn acres in lieu of soybeans in an extended season.

Big Picture: A drop-off in the U.S. Dollar index following the release of weaker-than-expected CPI data - showing year-over-year consumer prices up 7.1% in November, down from 7.7% in October - has commodities across the board higher. Crude oil and natural gas soared today, with precious metals and grains also climbing. "Wall Street was ecstatic about the 7.1% headline inflation number, and about the 6.0% core CPI number," said Arlan Suderman of StoneX in a note. "It's not that these are good numbers by any means. But they are declining when the market was braced for stronger numbers following last week's hotter-than-expected producer price index."


INSIGHTS


Pulling Back: U.S. daily ethanol production is expected to be lower than last week, according to analysts surveyed by Dow Jones. They forecast daily ethanol production landing anywhere from 1.05 million barrels per day to 1.077 barrels per day for the week ended December 9, versus 1.077 barrels per day reported by the EIA last week. That figure was the highest production reported by the EA in roughly a year. Meanwhile, analysts forecast that ethanol stocks may land anywhere from 23 million barrels to 23.86 million barrels, versus 23.26 million barrels reported last week.

Up the River: Low water levels on the Mississippi River continue to be an issue for barges carrying grains that travel to southern ports. American Commercial Barge Line in an update published this week said that river levels are being affected through December "with sustained severe impacts to navigation not seen since 1988." The company added that "while transit is improving on the Lower Mississippi, the Upper Mississippi above Cairo [Illinois] is forecast to see an increase in restrictions due to a deteriorating river stage St. Louis through Cairo." However, a storm moving through the country this week is providing precipitation, but the increased moisture only appears to be supporting rising levels on the southern portion of the river.


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 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

12-13-22 1602ET