By Kirk Maltais
--Corn for March delivery rose 1% to $3.89 1/2 a bushel on the Chicago Board of Trade on Monday, even though traders were disappointed by a lack of new sales to China.
--Soybeans for March delivery fell 0.4% to $9.42 1/4 a bushel.
--Wheat for March delivery lost 0.4% to $5.62 1/4 a bushel.
Watching & Waiting: The U.S.-China phase one trade deal is scheduled to be signed Wednesday, but signals of larger purchases by China have yet to materialize, making traders cautious. "The action today was not because the market thinks corn is a high probability purchase, but rather because the market was disappointed that the Chinese didn't buy beans or wheat overnight, and therefore the spreaders took off old bean/corn and wheat/corn positions," said Charlie Sernatinger of ED&F Man Capital.
Convince Me: Soybean and wheat futures felt pressure from traders doubtful of China ramping up purchases of U.S. agriculture to $40 billion to $50 billion. Some don't think it is a realistic scenario. "This agreement will not resolve all of the issues that created tensions between the two powers, and commodity traders remain skeptical of the results," said INTL FCStone.
WASDE Hangover: Even with 2019's weather and trade issues, Friday's monthly WASDE report showed higher production and supplies than expected. "The USDA [January] Crop Report is history and it didn't fulfill the lower U.S. crop hope of the supply bulls," AgResource said.
Eye on France: French railway strikes could hurt grain exports from the European Union's largest wheat producer by disrupting transport links between farms and ports. "I wouldn't say that it has been really a problem until now," said Andree Defois, managing editor of Strategie Grains. "But if it lasts longer it will definitely become a problem." About 10% of the grain is moved by train and trading company Soufflet Negoce said last week it was having difficulty supplying silos at ports.
--The USDA releases its monthly turkey hatchery report at 3 p.m. ET Tuesday.
--The EIA releases its weekly update on ethanol production and inventories at 10:30 a.m. ET Wednesday.
--The USDA will release its latest weekly export sales numbers at 8:30 a.m. ET Thursday.
--Joe Wallace contributed to this article.
Write to Kirk Maltais at email@example.com