By Kirk Maltais


--Soybeans for May delivery rose 0.6%, to $11.71 1/2 a bushel, on the Chicago Board of Trade on Tuesday, with parts of Brazil's soybean crop receiving too much rain and experiencing health issues as a result.

--Corn for May delivery rose 0.1%, to $4.46 1/4 a bushel.

--Wheat for May delivery fell 0.4%, to $5.74 3/4 a bushel.


HIGHLIGHTS


Water Damage: The northern half of the Brazilian state of Mato Grosso has gotten too much rain, which is keeping farmers in the process of harvesting soybeans out of their fields. The quality of the soybeans coming out of the area is also suffering, said Michael Cordonnier of Soybean & Corn Advisor Inc. "Farmers are reporting soybeans sprouting in the pods, broken and moldy seeds, reduced yields, and high moisture seeds above the standard required by grain warehouses," said Cordonnier in a note. Weather stress looks to cut into what was expected to be a record-large output of soybeans this year by Brazil.

Still on the Books: Fears of trade negotiations between the U.S. and China being derailed by the U.S./Israel strike in Iran were soothed Tuesday, after news reports that U.S. and Chinese officials are expected to meet this month ahead of a meeting between President Trump and Chinese President Xi. "The grain markets worried on Monday that the U.S. attacks on Iran could delay or end the Beijing summit," said AgResource in a note. This relief was a source of support for prices, but that support evaporated later in the morning.

Riding the Wave: Surging crude oil supported grains throughout the day, with supply-chain crunches due to the fighting in the Middle East. "The Strait of Hormuz now closed is helping rally energy prices," said AgMarket.net in a note. Grains are often tied to movements in crude oil, due to their usage in renewable fuels that can be mixed with motor fuel.


INSIGHT


Grain Piles: The USDA said that 196,000 metric tons of corn have been sold to unknown destinations, for delivery in the 2025/26 marketing year. Grain traders welcome the confirmation of new export demand, but movement today was more tied to the logistics around trade through the Middle East as opposed to demand for U.S. crops.

Better Mood: U.S. farmers are slowly turning more optimistic about their economic prospects, said a new monthly survey from Purdue University/CME Group. In its latest Ag Economy Barometer, farmers have a slightly better outlook regarding their current economic conditions. But farmers retain a stormy outlook regarding their future finances, according to the survey.


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 Friday.


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


(END) Dow Jones Newswires

03-03-26 1533ET