Grains-Corn, soy prices fall as US crop outlook improves; wheat rallies

CBOT wheat futures rose after a choppy start as traders assessed the impact of possible reductions to Russian wheat exports following Ukrainian drone attacks on ships in the Azov Sea.

Shipping in the Azov, the route for a quarter of Russia's grain exports, remained restricted on Tuesday after continued Ukrainian drone attacks, Reuters sources said.

"There is uncertainty about Russia's ability to export the tonnage that is forecast with the attacks in Azov. They say they can pivot to alternate routes, but Azov was a major outlet for them that may not be fully replaced so easily," Linn said.

Managed commodity funds hold a large net short position in CBOT wheat futures, leaving the market prone to short-covering rallies.