By Kirk Maltais

--Soybeans for January delivery rose 0.6% to $12.85 1/4 a bushel on the Chicago Board of Trade Friday after the USDA confirmed that China purchased more U.S. soybeans and India purchased a large amount of soybean oil.

--Wheat for March delivery rose 0.6% to $7.75 a bushel.

--Corn for March delivery rose 0.3% to $5.93 1/4 a bushel.

HIGHLIGHTS

Extended Trend: Soybean futures led the CBOT higher Friday following the USDA's announcement of new flash sales to China and India. The USDA confirmed that 132,000 metric tons of soybeans was sold to China for delivery in 2021/22, while 33,000 tons of soybean oil was sold to India in 20221/22. Friday's uptick makes it four consecutive sessions that soybean futures have risen.

Testing the Top: Corn futures pared gains seen earlier this morning, but lingered at a price level near $6 per bushel, which was last seen in July. The main driver, seen also in soybeans, comes from indications of less-than-ideal growing weather in South America. "The Southern Brazilian/Argentine forecasts are hot/dry for next week with numerous days of 90's to lower 100's," said AgResource. "South American crop totals are in retreat, [and] a good soy crop in Northern Brazil will be unable to make up the losses in Southern Brazil."

INSIGHTS

Increased Volatility: The absence of many traders during the holiday season is expected to introduce more volatility in grains for the rest of the year. "Many traders will shore up positions today and remain absent from the market until we get past the holiday season," said Karl Setzer of AgriVisor. "This will create low volume and high volatility in the market." Managed money is expected to be the main driver of volatility as they close their books for the year, Mr. Setzer adds.

Planting Delays: Argentine soybean growers are delaying planting in some areas because of rains that have occurred over the past two weeks. But the precipitation has also helped leave 90% of the estimated area planted with the oilseeds with adequate to excellent soil moisture levels, according to the Buenos Aires Grains Exchange. Farmers had finished planting on 64.7% of the estimated area as of Dec. 16, up from 56% a week earlier, the Exchange said. The USDA predicts Argentina will produce 49.5 million metric tons of soybeans in the 2021-2022 growing year, third in the world after Brazil and the U.S.

AHEAD:

--The USDA will release its weekly export inspections report at 11 a.m. ET Monday.

--General Mills Inc. will release its fiscal second-quarter earnings before the stock market opens on Tuesday.

--The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.

--The USDA will release its monthly Cold Storage report at 3 p.m. ET Wednesday.

Jeffrey Lewis contributed to this article.

Write to Kirk Maltais at kirk.maltais@wsj.com

(END) Dow Jones Newswires

12-17-21 1542ET