By Kirk Maltais


--Soybeans for January delivery rose 1.9% to $14.48 1/4 a bushel, on the Chicago Board of Trade Tuesday, in reaction to movement of palm oil overseas as well as political tensions in Brazil.

--Wheat for December delivery was up 1.8% at $8.97 3/4 a bushel.

--Corn for December delivery rose 0.8% to $6.97 1/2 a bushel.


HIGHLIGHTS


Political Points: Soybean futures on the CBOT led the complex higher for most of the day, with Brazil being the prime source of support for the contract. In addition to dry weather conditions expected next week in growing areas, political tensions following the election of Luiz Inácio Lula da Silva as Brazilian President, narrowly defeating incumbent Jair Bolsonaro. "Soybeans continue to lead the recent ascent amid unrest in Brazil, including the blockade of the primary road leading to the port of Paranagua," said AgResource in a note.

Climbing in Tandem: Soybeans also got a boost from strength in soybean oil seen for much of the day. Soy oil in turn got a boost from strength in palm oil, which in turn is stemming from Russia's ending cooperation with the Black Sea grain export corridor deal, said Doug Bergman of RCM Alternatives. "Vegoil markets are trading higher in relation to the Russia/Ukraine tensions with palm oil hitting 10-week highs," said Mr. Bergman in a note. Mr. Bergman also calls soybean futures overbought, but notes that weather in South America appears to be turning dryer next week.

Low Ratings: Wheat was supported Tuesday by the USDA's Crop Progress report--which showed the crop condition for the U.S. winter wheat crop at only 28% good-to-excellent, versus 45% at this time last year. Meanwhile, 87% of the U.S. crop has been planted, meaning that the U.S. crop could be in for significant issues as it progresses. "Winter wheat generally needs one good rain in the fall to establish it ahead of dormancy, with spring rains then being the primary determiner of yields," said Arlan Suderman of StoneX in a note. "Those spring rains didn't come for the 2022 hard red winter wheat crop, while we can only speculate on whether they'll come for the current crop."


INSIGHTS


Growing Worried: The sentiment of U.S. farmers is again more pessimistic, according to the latest Ag Economy Barometer reported by Purdue University and CME Group. According to the farmers surveyed, the effect of economic conditions on input costs is their chief concern. "Concern over rising interest rates grew once again in October and is adding to the unease among producers who are worried about its impact on their farm operations," said James Mintert of Purdue University. Mintert adds that low water levels on the Mississippi River are also sinking farmer sentiment, with the slowdown in export sales as a result of the barge backup seen as a negative by farmers.

Eye on Macro Events: Grain traders are now looking towards upcoming macro catalysts like Wednesday's rate decision from the Fed, U.S. CPI and nonfarm payrolls in terms of how they will dictate sentiment, according to Peak Trading Research. "The next nine days bring big macro catalysts that will shape the market's direction through the end of the calendar year," Peak said in a note.


AHEAD:


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

--CF Industries will release its third-quarter earnings report after the stock market closes on Wednesday.

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


Yusuf Khan contributed to this article.


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


(END) Dow Jones Newswires

11-01-22 1541ET