By Kirk Maltais


--Corn for March delivery fell 1.2%, to $4.28 a bushel, on the Chicago Board of Trade on Tuesday, with markets digesting Trump's plans to institute tariffs on Mexico, Canada and China.

--Soybeans for January delivery fell 0.3%, to $9.83 a bushel.

--Wheat for March delivery rose 0.2%, to $5.57 a bushel.


HIGHLIGHTS


Digesting Directives: President-elect Trump's plans for a 25% tariff on goods from Mexico and Canada--along with an additional 10% tariff on goods from China--were met with a sense of relief by some analysts. "Now we know the tariff amount and when it's all going down--right away in January--so this 'unknown' is now 'known,' and we can get back to life," said Naomi Blohm of Total Farm Marketing in a note. In a separate note, analysts with Capital Economics speculate that this announcement is designed to extract concessions from the affected nations, meaning that they can potentially be avoided.

Cut Down: CBOT wheat started Tuesday higher, but collapsed early in the trading session, finishing only slightly higher for the day. This easing was on trend for wheat, with traders seeing little effect to Russian wheat export prices from the escalation in the war between Russia and Ukraine. "According to a German trader, Russian wheat is still being offered at aggressively low prices of $220-230 per ton," said Commerzbank in a note. Low Russian prices have been an anchor on other global prices.


INSIGHT


Growing Speculation: Speculation swirling around Trump's tariff threats include questions on if these threats are being used as a power play for negotiations. With China, the threat of tariffs are seen as potentially leading to beneficial agreements involving Chinese purchasing of U.S. agriculture. "China is in a much weaker negotiating position than it was during Trump 1.0, but it is also a very proud nation that doesn't want to be seen as yielding to the United States," said Arlan Suderman of StoneX in a note.

Rise to the Occasion: Analysts surveyed by Dow Jones say that while there is a chance that U.S. average ethanol production may back away from the record-high levels reported earlier this month, there is also a strong possibility that production could set a fresh record in Wednesday's report. Analysts forecast daily ethanol production to rise as high as 1.116 million barrels a day. If that comes to pass, it would beat the 1.113 million barrels a day record set earlier this month.


AHEAD


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

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

--The CBOT will reopen for trading in the morning, closing early at 1:05 p.m ET Friday.

--The USDA will release its monthly Agricultural Prices report at 3 p.m. ET Friday.


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


(END) Dow Jones Newswires

11-26-24 1510ET