Soybean prices retreated midweek as traders engaged in profit-taking and technical selling following recent export sales to China. After Monday’s optimism over Chinese purchases, the market turned to “sell the fact” dynamics on Tuesday and Wednesday. The USDA reported that China bought an additional 330,000 tons of U.S. soybeans for the 2025/26 marketing year, bringing the week’s announced sales to 1.122 million tons and total purchases this season to 1.354 million tons. This figure remains well below the 12 million tons China had agreed to buy this year, raising questions about timing and delivery.
Despite these sales, Beijing continues sourcing soybeans from Brazil due to the country’s lower prices compared with U.S. supplies. Meanwhile, weather conditions remain generally favorable in South America, supporting crop development, while the tail end of the U.S. harvest is experiencing mixed conditions. Soybean meal and oil futures also followed a lower trend, reflecting the bearish tone in the soybean complex.
Corn prices fell as well, pressured by profit-taking and technical factors. Traders are closely monitoring near-term conditions in Argentina and Brazil, where favorable weather prevails, although concerns persist about potentially drier patterns in December. The USDA is scheduled to release its next supply, demand, and production estimates on December 9, followed by Brazil’s CONAB outlook on December 11. Weekly ethanol data showed U.S. production averaged 1.091 million barrels per day, slightly up from the previous week but down from last year, while stocks and exports remained relatively steady.
The wheat market also softened amid fund and technical selling. U.S. wheat carries a premium relative to other major exporters, limiting further upside. Argentina and Ukraine are offering the lowest export prices this week, with France, Germany, and Russia close behind. Traders are watching early harvest activity in Argentina and Australia and winter wheat conditions in Europe, Russia, and Ukraine. Rain is forecast for parts of the U.S. winter wheat region, potentially benefiting crops as they enter dormancy.
Overall, the global grain markets are balancing U.S. export sales, South American production trends, and shifting international price dynamics as traders prepare for upcoming USDA and CONAB reports.
