By Kirk Maltais
--Soybeans for November delivery rose 1% to $10.44 a bushel on the Chicago Board of Trade on Tuesday, as palm oil demand in China provided support for U.S. prices.
--Corn for December delivery rose 0.6% to $3.91 1/4 a bushel.
--Wheat for December delivery fell 0.1% to $5.94 a bushel.
Greasy Palms: "Palm oil closed higher for seven sessions in a row and this provided underlying support for the market overnight," RJO Futures said. "China imported 9.79 million tons of soybeans in September, up 1.9% from August. This was also up 19% from September last year." Demand for soy products in China has been elevated as the economy there recovers from the effects of coronavirus. To cover its soy needs, China has been turning to the export market.
Weathered: Wheat futures traded higher on the CBOT overnight before ceding those gains by the end of the day. For wheat futures, the main driver remains the weather situation in the Black Sea region. "Dryness is persisting in Russia, but it is raining heavily in Ukraine," AgriTel said. For Ukraine, the heavy rainfall may lead to planting delays as farmers have difficulty getting into their fields, while in Russia the dryness is likely stunting the growth of any winter wheat planted there, said the firm - with the open question being whether any rainfall in Russia going forward will be enough to mitigate the damage.
Pump the Brakes: The USDA has pegged the corn harvest at 25% complete, above the five-year average, but Craig Turner of Daniels Trading says he's been hearing the harvest reports are worse than expected. "Granted this is very anecdotal, but the conversations I've had with farmers through much of the Midwest are leading me to believe the corn yield is coming down in subsequent WASDE reports," Mr. Turner says.
Political Pitch: Overtures to the U.S. ethanol industry, which has been under pressure amid the Covid-19 pandemic, are cropping up in the presidential election. Former Vice President Joe Biden says he supports biofuels and has vowed to advance renewable energy, ethanol and other biofuels to help rural America, according to Arun Sundaram of CFRA Research. Last week, the Trump administration through the USDA disbursed $22 million from its Higher Blends Infrastructure Incentive Program to recipients in 14 states. The program aims to increase the use and sale of higher blends of ethanol and biodiesel derived from U.S. agricultural products, the USDA said, with a total of $100 million in grants available.
--The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. ET Thursday.
--The USDA will release its latest weekly export sales numbers at 8:30 a.m. ET Friday.
--Kansas City Southern will release its third-quarter earnings before the stock market opens Friday.
--The CFTC releases its weekly commitment of traders report at 3:30 p.m. ET Friday.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires