By Kirk Maltais

--Corn for December delivery rose 1% to $5.43 1/2 a bushel, on the Chicago Board of Trade Tuesday, rallying in response to stronger energy prices.

--Soybeans for November delivery rose 0.1% at $12.38 a bushel.

--Wheat for December delivery fell 1% to $7.52 1/4 a bushel.

HIGHLIGHTS

Kinetic Energy: Corn futures turned around after starting lower in pre-market trading due in part to renewed optimism around the ethanol market. Ethanol production figures have been on a swift rise in recent weeks, although analysts surveyed by Dow Jones expect production may fall this week, with inventories rising. Crude oil finished with another gain, close to $85 per barrel - the highest it's traded at since late 2014.

On Pace: Wheat futures were pressured by the unfettered pace of planting for winter wheat in the U.S. which is now 80% complete, matching the 4-year average. This time last year, winter wheat planting was at 84%. Even so, concerns about the quality of the world wheat supply look to be supportive for futures going forward. "We maintain the view that there is a real lack of higher quality wheat across the globe right now and the people hoping that Australia will come to the rescue may be misled... [we] still like wheat to outperform the row crops even at these premiums," said Richard Buttenshaw of Marex Spectron.

INSIGHTS

Pressure Point: High fertilizer prices may crimp soybean prices in the coming months - with farmers opting to grow more soybeans instead of corn, since corn requires more-intensive usage of fertilizer to fulfill its nutritional requirements. "I think new crop soybeans have a potentially bearish story," said Craig Turner of Daniels Trading. "If soybean ending stocks get back to 500 million bushels then [futures] could be $10 by harvest next year. On the flip side, corn could be the winner if acres are a few million lower than expected."

High Expectations: Agricultural commodity-trading firms have been among the biggest winners this year as global supply chains have tightened, and Chicago-based Archer Daniels Midland anticipates another strong year in 2022. CEO Juan Luciano said strong global demand for crops and products like vegetable oil, animal feed and corn-based ethanol will persist in the months ahead, boosting ADM's grain-trading, processing and transport businesses. "We feel very good at the moment," Mr. Luciano said, adding that energy costs and other inflationary pressures are also expected to continue.

Back on the Radar: The USDA reported new flash sales of U.S. grain exports this morning - with 199,000 metric tons of soybeans sold to China for delivery in the 2021/22 marketing year, and 125,730 tons of soybeans to Mexico for delivery in 2021/22. Continued confirmation of sales to China may provide a push for grains later in the week - specifically soybeans. "There is not a lot of resistance from current prices up to the $12.80-13.00 [per bushel] area," said Doug Bergman of RCM Alternatives regarding soybeans.

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 USDA will release its monthly agricultural prices report at 3 p.m. ET Friday.

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

Jacob Bunge contributed to this article.

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

(END) Dow Jones Newswires

October 26, 2021 15:47 ET (19:47 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.