Soybean futures moved lower on fund and technical selling, extending weekly losses as traders reacted to a fresh round of “sell the fact” activity. China’s purchase of 132,000 tons of U.S. soybeans for the 2025/26 season lifted total weekly announced sales above 1 million tons, but the market response remained muted. Ongoing uncertainty around a potential U.S.-China trade deal, unclear delivery timing and sales volumes falling short of expectations kept sentiment cautious. Meanwhile, generally favorable weather in Brazil and Argentina continues to support expectations for large South American crops.
Soybean meal futures were mixed as spreads adjusted, while soybean oil declined in line with weaker bean prices. Export activity provided some support, with Mexico buying more than 100,000 tons of U.S. soybean meal across the 2025/26 and 2026/27 marketing years.
Corn futures also retreated on fund and technical selling, ending the week lower. Crop development conditions in Brazil and Argentina remain largely favorable, with updated production outlooks expected from the USDA and Brazil’s CONAB in January. Despite reduced price competitiveness, demand has stayed firm, highlighted by another sizable sale of U.S. corn to unknown destinations, marking the second consecutive daily purchase. Questions remain over final destinations and shipment timing, while reports of quality issues in China’s latest corn crop are being monitored.
Wheat futures weakened on similar selling pressure, with weekly performance mixed across contracts. Chicago and Kansas City futures declined, while Minneapolis held firmer. Argentina’s advancing wheat harvest has pushed its prices to the lowest globally, increasing competition for U.S. exports. Harvests are also progressing in Australia, while winter wheat conditions across the U.S., Europe and the Black Sea region remain mostly stable, though parts of Central Europe and the Black Sea could benefit from additional rainfall.
