By Paulo Trevisani


--Wheat for March delivery fell 1% to $8.10 1/2 a bushel on the Chicago Board of Trade on Tuesday amid low trade volumes ahead of the Thanksgiving holiday in the U.S.

--Soybeans for January delivery slipped 0.5% to $14.29 3/4 a bushel.

--Corn for December delivery edged 0.4% lower to $6.56 3/4 a bushel.


HIGHLIGHTS


Supply Fears: Grain prices rose in early trade, lifted by a weaker dollar, before turning lower. For now, lack of supply seems to be at the forefront of traders' minds. RCM's Doug Bergman noted in a report that soybean supplies may tighten as Argentina's growing season is delayed by continued dry weather. On wheat, he added: "The U.S. crop has problems, the Argentine crop is getting smaller, the Australian crop is poor quality, and now concerns are increasing that southern European wheat is dry."

Choppy Trade: Trade volume on the CBOT was poor due to traders closing out positions ahead of the holiday on Thursday, AgResource said in a report. "Few traders have profited from the recent choppy CBOT which has hurt trading volume.... The question from all is when do trends restart?" AgResource said choppiness is likely through Friday, when the trade closes earlier because of the holiday. But "if Brazilian weather is favorable, a more sustained break in the soybean market will occur as the record large supply is digested," with corn following beans and wheat staying within range, the firm said.

Support From Biodiesel: Brazil's announcement Monday that it could raise the requirement for the biodiesel blend in diesel next year offered some support for corn and soybean prices. However, President-elect Lula da Silva is expected "to alter this proposal once he is installed in January," AgResource said in an analysis report, adding that there are new fuels being considered with a frontrunner from Brazil's Petrobras.


INSIGHT


Tight Wheat: U.S. wheat crop ratings are a concern, StoneX's Craig Turner said in a report. Barring "excellent spring weather, the U.S. HRW wheat crop will be in distress as drought continues in the Southern and Western Plains," he said, noting that supplies are tight around the world. "Farmers need to get aggressive selling or hedging 2023 corn, soybeans, and canola, on the next rallies." Mr. Turner expects corn to go from a tight market to a well-supplied one by the U.S. harvest next year. He said high prices would slow demand and increase corn and oilseeds acreage.


AHEAD


--Deere & Co. will release its fourth-quarter earnings report before the stock market opens Wednesday.

--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.

--The USDA will release its monthly livestock slaughter report at 3 p.m. ET Wednesday.

--The USDA and the Chicago Board of Trade will both be closed Thursday in observance of Thanksgiving. Both will reopen Friday.

--The USDA will release its weekly export sales report at 8:30 a.m. ET Friday.


Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

11-22-22 1555ET