By Anthony Harrup


--Soybeans for March delivery settled down 0.5% Tuesday on the Chicago Board of Trade at $10.56 1/4 a bushel as a rally supported by Chinese purchases ran out of steam.

--Wheat for March delivery fell 0.4% to $5.10 1/2 a bushel.

--Corn for March delivery slipped 0.1% to $4.44 a bushel.


HIGHLIGHTS


Catalyst Needed: Grains futures ended the session broadly lower after a steady-to-higher start. AgResource doubts March corn can get above $4.50-$4.60 a bushel resistance, while soybeans sell between $10.65 and $10.75. Falling world wheat free-on-board offers cap March Chicago futures at $5.20-$5.30. "The world simply has too much grain and U.S. corn export potential is starting to wane," the firm said in a note. "Supply shocks due to adverse weather are needed for a sustained CBOT bullish price trend."

Rain in the Plains: Wheat futures found some support from recent dry weather in the Plains, Tanner Wilson of Total Farm Marketing said in a note. Weather remains relatively stable in the Plains states for much of the next two weeks, but "above-normal temperatures with normal precipitation could put a pause on any significant moves higher, barring a cold snap," he added.

Flash Sale: The USDA reported a new flash sale of 336,000 metric tons of soybeans to China for delivery in the 2025/26 marketing year.


INSIGHT


On Target: The USDA's confirmation of another flash sale of soybeans to China adds to the likelihood China will buy the full 12 million metric tons priced in by the market in November, Arlan Suderman of StoneX said in a note. He said cash sources indicate China has now purchased more than 10 million metric tons, or about 4 million more than the USDA has confirmed so far.

"The bigger questions now revolve around when/if China takes delivery of the purchased soybeans in the current marketing year, with logistical challenges to doing so on its end of the route," he said. "Chinese ports are stuffed with cheaper Brazilian supplies, with more on the way, and soymeal stocks are high due to soft demand."

Down South: The Buenos Aires grains exchange recently raised its wheat crop estimate to 27.8 million metric tons from 27.1 metric tons previously as the harvest enters its final stretch.


AHEAD


-Cal-Maine Foods Inc. will release its second-quarter earnings report at 6 a.m. EST Wednesday.

-The EIA will release its Weekly Petroleum Status Update report at 10:30 a.m. EST Wednesday.

-The USDA will release its weekly export sales report at 8:30 a.m. EST Thursday.

-The USDA will release its weekly Commitment of Traders report at 3:30 p.m. EST Friday.


Write to Anthony Harrup at anthony.harrup@wsj.com


(END) Dow Jones Newswires

01-06-26 1538ET