Grain markets delivered mixed results Tuesday, with soybeans suffering another sharp drop, corn posting modest gains, and wheat slipping under the weight of global supply pressures. Here's how each market performed and the key factors shaping futures movement.

Soybeans Sink on Trade Uncertainty

Soybean futures fell more than 13 cents, with November contracts closing at $10.41 and January down to $10.5950 - a decline of roughly 1.25%. The slide follows recent news that U.S.-China trade talks were downgraded to "preliminary discussions," signaling a slower-than-expected path forward for export recovery.

Across the soybean complex, the trend was mixed: soybean meal futures fell 1.8%, while soybean oil rose more than 1%. Despite the weakness in futures, export inspections showed improvement, climbing to 17.4 million bushels last week, with Vietnam leading the pack at 4.6 million bushels.

Cumulative soybean exports for the 2024-25 marketing year are now 11.3% above last year's pace, totaling 1.829 billion bushels.

Ahead of the next NOPA (National Oilseed Processors Association) crush report, analysts expect a record-high July crush of 207.1 million bushels, with soybean oil stocks forecasted at 1.895 billion pounds.

The latest Commitments of Traders (COT) report shows that large speculators are increasingly bullish on soybeans, holding a net long position of 20,818 contracts as of August 26.

Corn Climbs on Export Strength

Corn prices edged higher, with December futures up 2.75 cents to $4.23, and March gaining 3 cents to close at $4.4075. The lift came despite weakness in other markets, driven largely by strong export inspection data.

Weekly corn inspections reached 55.4 million bushels, well above analyst expectations. Mexico was the top buyer, accounting for 11.1 million bushels. Cumulative exports now stand at 2.637 billion bushels, up 28.6% year-over-year for the 2024-25 season.

In speculative markets, managed money reduced net short positions by 33,964 contracts, bringing the total to 110,686. Meanwhile, Friday's corn liquidation volume hit 428,852 contracts, reflecting cautious optimism among traders.

In South America, AgRural reports that only 7% of Brazil's 2025-26 first corn crop has been planted - a slower pace compared to 15% at this time last year and 17% in 2023-24.

Wheat Drops on Global Supply Pressure

Wheat markets faltered again, pressured by ample global supply and technical selling. Chicago SRW December futures fell 6 cents to $5.2825, while Kansas City HRW lost 8.5 cents to finish at $5.1125.

Despite solid weekly export inspections of 29.5 million bushels - exceeding expectations - a strong U.S. dollar and global supply competition weighed on the market. Mexico led U.S. wheat imports at 5.7 million bushels.

U.S. wheat exports are 14.5% ahead of last year's pace, totaling 244 million bushels for the 2025-26 marketing year.

Globally, Australia's ABARES projects 2025-26 wheat production at 1.242 billion bushels, just 1% below last year but still historically high. Meanwhile, Russia - the world's top wheat exporter - is forecasted by Sovecon to produce 2.138 billion bushels, with 1.606 billion expected for export.

Speculators trimmed net short positions in SRW wheat by 16,545 contracts, though they still hold a bearish net short of 81,587 contracts. Total wheat liquidations on Friday reached 110,702 contracts.

Weather Outlook and Macro Factors

The latest 72-hour NOAA forecast shows potential for scattered rainfall across parts of the Corn Belt, but most fields are expected to receive less than 0.25 inches. The 8-14 day outlook predicts wet conditions across the western Corn Belt and Plains, with above-average temperatures in the central U.S.

On Wall Street, the Dow Jones slipped 412 points to close at 45,132, responding to rising bond prices and tariff uncertainty. In energy, crude oil climbed 1.5% to $65 per barrel, while gasoline futures jumped 2.5%. The U.S. dollar also strengthened moderately, putting additional pressure on commodity exports.