By Kirk Maltais


-- Wheat for December delivery fell 1.4% to $5.58 1/4 a bushel on the Chicago Board of Trade on Tuesday in response to low offers for wheat exports coming from Russia.

-- Corn for December delivery rose 0.2% to $4.79 1/2 a bushel.

-- Soybeans for January delivery rose 0.3% to $13.12 1/4 a bushel.


HIGHLIGHTS


Tough Competition: A tough export market pressured CBOT wheat throughout the day. Doug Bergman of RCM Alternatives said in a note that low offers out of Russia are weighing on global prices.

However, he believes China's appetite for wheat exports may help turn prices around.

"We do have China aggressively buying and supplies held by major exporters [are] near multi-year lows," Bergman said.


Macro Watch: Grain traders are keeping their eyes on the bigger economic picture, said Arlan Suderman of StoneX. "End of the month trade provided much of the focus thus far today, while traders also ponder what the Federal Reserve might say tomorrow, while they also monitor headlines coming out of the Middle East," he said.

Volumes traded on the CBOT were light.


INSIGHT


Wild Rainfall: Bad weather in Southern Brazil is expected to ruin some already-planted corn and soybeans there, negatively impacting the nascent crop.

"Heavy rains of 4-12" in Southern Brazil this weekend with prospects for an additional 2-5" this week will lead to localized flooding and the need to replant some corn and soybeans acres," said Naomi Blohm of Total Farm Marketing in a note.


Snow Situation: The USDA's Crop Progress Report showed crop harvesting in the U.S. has slowed versus this time last year, thanks to snow cover in northern states.

Daniel Flynn of Price Futures Group said in a note the remaining corn harvest "will be slowed by corn standing in snow."

The snow is expected to stay through the rest of the week, with temperatures staying low.


Improved Sentiment: A flash sale announced by the USDA on Tuesday morning had grain traders and analysts expecting a bigger wave of export demand amid cheaper prices for U.S. grains. The government confirmed that Mexico purchased 239,492 metric tons of soybeans, and further sales to China may also soon be confirmed.

"There are rumors that China was back this morning asking for U.S. Gulf soybean offers and U.S. soft red winter wheat offers," said AgResource in a note.


AHEAD


-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EDT Wednesday.

-- The USDA is due to release its monthly grain crushing report at 3 p.m. EDT Wednesday.

-- The USDA is scheduled to release its weekly export sales report at 8:30 a.m. EDT Thursday.

-- Archer Daniels Midland Co. is due to release its third-quarter earnings report on Thursday.


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


(END) Dow Jones Newswires

10-31-23 1550ET