By Kirk Maltais


--Wheat for March delivery rose 0.3% to $5.17 3/4 a bushel on the Chicago Board of Trade Tuesday, paring gains after strong export sales were reported by the USDA this morning.

--Corn for March delivery rose 0.1% to $4.47 1/4 a bushel.

--Soybeans for January delivery fell 0.2% to $10.50 3/4 a bushel.


HIGHLIGHTS


Initial Spark: What gave grains support in Tuesday morning trade was the USDA's export sales report through the week ended Dec. 11. It showed promising figures for grain exports across the board, but some analysts question the bigger picture for grain prices, Ocean State Research's Joel Karlin said. Volumes were light in a shortened week trading, with markets open only for a half-day tomorrow and closed on Thursday in observance of the Christmas holiday.

Hitting a Wall: The so-called "Santa Claus Rally" looks like it may already be over for grains. "That rally started yesterday, but with Santa's bag filled with soybeans, wheat, and corn, we doubt that much upside traction can be gained," AgResource said in a note. Investors in the wider markets were looking for a rally to take place between now and the new year, and some assets like precious metals did see big gains overnight.


INSIGHT


Wetter Brazil: Estimates around the size of the Brazilian crop continues to rise. Michael Cordonnier of Soybean & Corn Advisor Inc. said in a note that the firm raised its view of soybean production to 177 million metric tons, up 1 million tons from their prior forecast. "The increase is due to improved weather across Brazil, especially Rio Grande do Sul, which is expected to be the second largest soybean producing state after Mato Grosso," Cordonnier said. "Early predictions were that the state would suffer dryer-than-normal weather due to La Nina, but that has not turned out to be the case, at least not yet."

Out the Door: Russian wheat exports for December are forecast to be up roughly 500,000 metric tons from the same month a year ago, SovEcon said in a note. The Black Sea agricultural consultancy projects exports of 3.9 million tons, as margins improve. "Lower domestic prices combined with stable export quotes lifted wheat export margins," SovEcon said. "From November to December, domestic wheat prices fell by 5% to 13,200 rubles per metric ton, pushing exporter margins from negative territory to several dollars per ton."

State of Upheaval: Gains in oil futures prices were trimmed after yesterday's news of the U.S. military tightening its blockade of tankers entering and leaving Venezuela. Ritterbusch and Associates argues the possibility of further U.S. sanctions on Russia, and Ukrainian strikes on Russian infrastructure, are a bigger consideration for oil prices. For grains, movement in crude oil impacts gasoline prices, and in turn demand for the biofuels that are often blended with that fuel.


AHEAD


--The CBOT will close trading early in observance of Christmas Eve, at 1:05 p.m. ET Wednesday.

--The USDA and the CBOT will be closed in observance of the Christmas holiday Thursday. Both will reopen on Friday.

--The USDA will release its weekly export sales report covering the week ended Dec. 11 at 8:30 a.m. ET Friday.


Anthony Harrup contributed to this article.

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

(END) Dow Jones Newswires

12-23-25 1600ET