By Kirk Maltais


--Wheat for March delivery rose 2.7%, to $6.26 a bushel, on the Chicago Board of Trade on Tuesday, with traders weighing out signs of production issues in France combined with indications of higher demand in Russia.

--Corn for March delivery rose 0.7%, to $4.84 3/4 a bushel.

--Soybeans for January delivery fell 0.9%, to $13.23 1/2 a bushel


HIGHLIGHTS


Potential Disruption: China's appetite for U.S. wheat exports has been the chief factor supporting CBOT wheat in recent weeks, indications of supply issues elsewhere supported prices Tuesday. The issue in focus is the delay of sowing in France due to heavy rains disrupting fieldwork. Some traders interpreted France's sowing delay as signaling an export market shortfall. "With financial operators still holding significant short positions, the slightest piece of information can quickly lead to renewed price volatility," said AgriTel in a note.

Over in the Black Sea: Also supporting CBOT wheat was improving Russian wheat prices, which got a boost from higher demand both externally and internally, SovEcon said in a note. The firm said that Russian export sales nearly tripled week over week, with 3.4 million metric tons sold for the week ended Friday. Meanwhile, wheat is also in demand within Russia. "In the domestic market, high demand from millers and livestock farms is bolstering prices," said Andrey Sizov of SovEcon. "Consumers are likely trying to replenish stocks ahead of the long New Year holidays."


INSIGHTS


Pending Decision: Expected guidance on whether sustainable aviation fuel made of ethanol can qualify for renewable fuel tax credits was supportive for CBOT corn Tuesday--and may be a factor moving futures this week until the Treasury Department issues its decision. If the Treasury guidance allows for the credit, then ethanol demand is expected to see a large boost, in turn buoying underlying corn demand. The Renewable Fuel Association calls the potential decision a "make-or-break" moment for the future of SAF in the U.S.

In a Flash: For the second straight day, the USDA has confirmed a flash sale of U.S. soybeans to unknown destinations, this time totaling 198,000 metric tons for delivery in the 2023/24 marketing year. It also is the second consecutive day without any notice of a fresh wheat sale, which added to the trader sentiment that China has purchased its fill of U.S. wheat, at least for now.


AHEAD:

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

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

--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.


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


(END) Dow Jones Newswires

12-12-23 1545ET