By Kirk Maltais
-- Wheat for November delivery rose 2.3% to $5.97 1/4 a bushel on the Chicago Board of Trade on Tuesday, following Russian wheat prices higher and adding risk premium in the wake of Iran's missile barrage on Israel.
-- Corn for December delivery rose 0.9% to $4.28 1/2 a bushel.
-- Soybeans for November delivery fell 0.1% to $10.56 1/2 a bushel.
HIGHLIGHTS
Follow the Leader: Grain traders took their cues from improving prices for Russian wheat exports.
In a note, AgResource cited a $4 per-metric-ton improvement to Russian wheat export prices, to $222 per ton, as one factor lifting their Chicago counterparts.
The elevated conflict in the Middle East added support to the gains, as Iran launched a missile barrage at Israel that threatens to widen the scope of the conflict.
Geopolitical uncertainty also provided corn and soybeans with limited support later in the trading session.
Off and Running: Soybean futures showed the largest reaction to the beginning of the International Longshoremen's Association's strike, affecting operations at dozens of ports across the East and Gulf Coasts.
The timing of the strike affects soybeans more than other grains.
"This comes at a bad time for U.S. soybean exporters, which usually ship out the majority of U.S. bean exports in the coming weeks," Doug Bergman of RCM Alternatives said in a note.
However, the majority of soybeans are exported in bulk, limiting the immediate effect of the labor stoppage.
INSIGHT
Sticking With the Basics: An extended U.S. port strike could stifle the typical agricultural supply chain and create a glut of grains that would leave farmers with even weaker prices for their harvests.
But other fundamental factors are providing grains with short-term support, Karl Setzer of Consus Ag Consulting said.
"I think the hot, dry conditions in Brazil are getting more attention," he said.
Brazilian planting areas haven't received adequate rainfall this year, which looks to slow planting progress in many of the country's crop-growing areas.
Stepping Stone: A revised Farm Bill is a top focus for corn farmers, said Kenneth Hartman, who assumed the role of president of the National Corn Growers Association Tuesday.
Hartman said that simply extending the provisions of the 2018 Farm Bill isn't sufficient for farmers' finances anymore.
"On the economy side of it, things have changed a lot," he said.
The terms for crop insurance need to be updated, and target commodity prices need to reflect that corn prices at an average grain elevator are only fetching a basis price of roughly $3.50 a bushel, said Hartman.
Additionally, the lack of a Farm Bill makes key operating loans to farmers harder to obtain, he said.
Input Issues: The port strikes could be significantly disruptive for fertilizer trade, said Ryan Bowley, vice president of government affairs at the Fertilizer Institute.
According to Bowley, more than 70% of East and Gulf Coast fertilizer imports enter through the New Orleans port, while over half of exports move through Tampa. Both sites are involved in the strike.
Fertilizer shipments are increasingly transported by containers, Bowley said.
Farmers often begin to purchase inputs such as seeds and fertilizer around this time of the year for use in next year's planting season.
AHEAD
-- Conagra Brands is scheduled to release its first-quarter 2025 earnings report before the stock market opens Wednesday.
-- The EIA is due to release its weekly ethanol production and stocks report at 10:30 a.m. EDT Wednesday.
-- The USDA is scheduled to release its weekly export sales report at 8:30 a.m. EDT Thursday.
-- Guilia Petroni contributed to this article.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
10-01-24 1526ET
