Soybeans were mostly lower on fund and technical selling, following a couple of days with higher business last week. The trade continues to monitor crop development weather in South America, which has been largely supportive to a larger crop in Brazil, while there is some drier weather in the forecast for Argentina. Soybean meal had a slower start to the week, while bean oil moved higher. The USDA reported China purchased 132,000 tons of U.S. soybeans to start the day. There's been talk that those purchases could be more regular as the country works to get ahead of potential tariffs in 2025.
Corn was mixed, mostly higher on spread trade. The USDA reported a purchase of 132,000 tons of corn to an unknown destination. There has been strong demand for several key customers, which has helped offset some of the concerns about slower sales to China. Domestic feed and fuel demand are also supportive. There have been multiple reported sales of corn in the last week. The market continues to monitor the weather in South America. The Buenos Aires Grain Exchange has Argentina's crop rated at 98 percent good to excellent. The crop is headed into pollination in some areas, and while crop development weather looks pretty good, Argentina has faced some drier conditions. The USDA's updated supply, demand, and production numbers are out January 10, while CONAB's updated outlook for Brazil is set for January 14.
The wheat complex was higher on fund and technical buying. Wheat futures pushed higher as the market continues to digest global news. Last week, Russia's government announced it lowered its export quota starting in February by 400,000 tons to 10.6 million tons, which could open up some opportunities for U.S. wheat abroad. Moscow is also expected to raise wheat export tariffs in the second half of the year. While the USDA is expecting an uptick in exports for U.S. wheat, that will largely depend on how other countries, like Argentina and Australia, market their crops, which are currently being harvested. It's reported that Argentina's harvest is past the 75% mark.