By Kirk Maltais


--Wheat for December delivery fell 2.1% to $5.53 1/2 a bushel on the Chicago Board of Trade on Tuesday, with rainfall in southern Russia seen as improving the outlook for crop growth there.

--Soybeans for January delivery fell 1% to $10.12 1/4 a bushel.

--Corn for December delivery fell 0.2% to $4.29 a bushel.


HIGHLIGHTS


Price Pressure: Wheat led the CBOT lower today, with the world supply picture appearing less dire as weather in Russia turns more supportive for crops. "In southern Russia, recent rainfall has improved new wheat crop prospects," SovEcon said in a note. Also the expected easing of tensions between the U.S. and Russia, due to the warmer relationship between Russian President Vladimir Putin and President-elect Donald Trump, boosted wheat. Assumptions around the demand picture for wheat may also be changing, SovEcon said. "We also believe the market may be overestimating the prospects for Russian exports this season," said the firm.

On the Fly: The U.S. dollar index climbed 0.4% late in trading, extending its run higher and pressuring U.S. commodities sold on international markets such as grains. Heightened fears around inflation from potential tariffs in a second Trump administration have also been haunting the futures market this week.

Product Weakness: Contributing to soybean weakness throughout the day was a 3.9% decline in CBOT soybean oil futures. The drop-off is linked to a fall in Malaysian palm oil prices, said AgResource in a note. "Malaysian palm oil futures fell to one of their largest daily losses in months on profit-taking tied to the worry of palm oil's premium to crude oil would cause Indonesian government policy makers to slow-walk the rolling out the B40 blend rate in 2025," said the firm.


INSIGHT


Resistant to Change: Corn futures were able to deflect more of the downdraft that hit wheat and soybeans today. "Corn does not seem to be bothered by the pressure," said Donna Hughes of StoneX, noting that crude oil traded flat today. Flash sales of corn exports to Mexico announced this morning also didn't provide corn with the support needed to keep those futures positive.

Storm System: Rainfall is expected to come through crop-growing areas of the Central U.S. tomorrow, with a recent weather forecast giving a 60-90% chance for that rainfall to occur in a wide swath, ranging from Minnesota to Louisiana. That's according to data from the NOAA's National Weather Service, compiled by StoneX. The system is expected to then move east, dropping rain in the mid-Atlantic on Thursday. Rainfall now is a source for soil moisture for farmers planting next spring.

Appetite for Anxiety: Americans' fixation on food inflation makes restrictions on Bayer's weed killers unlikely, its CEO said. Agriculture officials are anxious about the influence of known pesticide critic Robert F. Kennedy Jr. in the incoming Trump administration and how that would affect the chemicals they sell to U.S. farmers. Kennedy has said on social media that the U.S. will restrict pesticides banned in Europe. But Bayer CEO Bill Anderson said that glyphosate, a key ingredient in its Roundup weedkiller, is needed to keep grain prices low and that Europe's pesticide policies have made the region an importer of crops from the U.S. and South America.


AHEAD


--Maple Leaf Foods Inc. will release its third-quarter earnings report at 6 a.m. ET Wednesday.

--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Thursday.

--The USDA will release its weekly export sales report at 8:30 a.m. ET Friday.

--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.


Patrick Thomas contributed to this article.


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


(END) Dow Jones Newswires

11-12-24 1516ET