By Jesse Newman

CHICAGO-Grain and soybean prices rose Tuesday, buoyed by widespread buying and investor short-covering ahead of a closely-watched crop report and results from the U.S. presidential election.

Soybean prices swung higher for a fourth consecutive session, tipping over the $10-a-bushel mark ahead of a monthly update on crop supplies and demand from the U.S. Department of Agriculture due at noon ET on Wednesday. Although federal forecasters are expected to raise estimates for U.S. production and stockpiles of the oilseeds, which is seen as negative for prices, analysts said increased optimism that Hillary Clinton could win the U.S. presidential election has helped bolster the market as her positions are seen as more favorable for world trade than Donald Trump's.

International trade is critical to the U.S. soybean market, particularly as domestic farmers this year harvest what is likely to be the biggest crop in history. So far this season, overseas buyers have been snapping up U.S. soybean supplies at a quick clip, boosting hopes that importers like China will help soak up the huge crop.

Buyers in the soybean market also took cues Tuesday from higher prices for soyoil and soybean meal, which are derived from the oilseeds. Soyoil prices closed 1.5% higher amid concerns over reduced production of palm oil, a rival vegetable oil.

Soybean futures for November advanced 12 1/2 cents, or 1.3%, to $10.01 3/4 a bushel at the Chicago Board of Trade.

Strength in the soybean market also helped fuel short-covering in corn and wheat as speculative investors like hedge funds and others closed out of bearish bets in those markets in case a prolonged soybean rally spilled over into the grain markets, raising prices.

"A sustained rally in soybeans could certainly take corn and wheat higher but otherwise the feed grain market is expected to struggle to maintain upward movement," said Arlan Suderman of brokerage INTL FCStone.

Analysts widely expect the USDA on Wednesday will shave its forecasts for U.S. corn production and inventories, though the government will likely still project a record crop and the largest grain stockpiles in nearly three decades.

CBOT December corn futures gained 8 cents, or 2.3%, to $3.54 1/4 a bushel.

CBOT December wheat climbed 5 1/4 cents, or 1.3%, to $4.15 1/4 a bushel.

Write to Jesse Newman at

(END) Dow Jones Newswires

November 08, 2016 16:08 ET (21:08 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.