By Kirk Maltais

--Soybeans for May delivery rose 0.7% to $8.88 1/4 a bushel on the Chicago Board of Trade on Tuesday, bouncing back for the day as some traders saw an opportunity to buy into grain futures at lower prices.

--Wheat for May delivery rose 0.4% to $5.37 a bushel.

--Corn for May delivery rose 0.1% to $3.76 1/2 a bushel.

HIGHLIGHTS

Selling Slowdown: Soybean futures led a slight rebound Tuesday, diverging from the roughly 800-point drop on the Dow Jones Industrial Average. One reason for the push higher is traders saw an opportunity for new grain buying as livestock futures continue to decline in response to coronavirus, said John Payne of Daniels Trading. "That's all I can figure, there's nothing else," said Payne. While grains rose, live cattle futures fell another 2%, and hogs only rose by 0.1%.

Bad Weather Wishes?: The brief break from sliding futures isn't expected to last long, said AgResource. "Following Monday's sharp decline, the CBOT is afforded to catch its breath, but it's doubtful that any lasting rally can unfold without adverse weather," says the firm. However, the Midwest is projected to have above-average temperatures this week, with precipitation near to below average for the next 6-10 days.

INSIGHT

Wheat Eaters: Traders have been speculating that Russia and Ukraine will produce larger-than-expected wheat crops, but current U.S. futures dynamics may soon turn. "The market is loaded up with speculative length, so look for more downside as the market pushes out weak longs," said Doug Bergman of RCM Alternatives. "Let the market trade lower, but look for signs that selling interest is waning to step back in as a buyer."

Corn Clingers: Corn futures may be receiving support from farmers holding on to their old-crop corn inventories while waiting for higher prices. "Producer grain holding remains the popular explanation for a strong basis and small futures spreads," said Todd Hubbs with the University of Illinois. "If that is the case, basis levels should weaken whenever producers give up and move old crop stocks." Unless demand for corn increases in a big way, it will take tough planting or harvesting conditions for corn prices to go higher, Mr. Hubbs said.

AHEAD

--The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. ET Wednesday.

--Bayer AG, owner of Monsanto, releases its full-year earnings on Thursday.

--Beyond Meat Inc. releases its fourth-quarter earnings on Thursday.

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

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

(END) Dow Jones Newswires

February 25, 2020 15:58 ET (20:58 GMT)