GRAINS-Chicago soybeans head for first annual gain in three years on China's return

BEIJING, Dec 31 (Reuters) - Chicago soybean futures were set on Wednesday for their first annual gain in three years, supported by China's return to the U.S. market following a late-October trade truce, although ample global supplies capped the advance.

Wheat and corn futures, meanwhile, were on track for a third consecutive year of declines, pressured by abundant world supplies.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 is up 5.12% in 2025. Wheat Wv1 has given up 7.4% this year, while corn Cv1 is down almost 4%.

As of 0209 GMT, corn inched up 0.06% to $4.40-3/4 a bushel, wheat dropped 0.1% to $5.10-1/4 a bushel and soybeans gained 0.02% at $10.62-1/2 a bushel.

Traders have been closely monitoring Chinese buying activity and shipment flows following trade talks with the United States. The White House said Beijing had pledged to buy 12 million metric tons of soybeans by the end of the year. U.S. Treasury Secretary Scott Bessent pushed back that deadline to the end of February.

The U.S. Department of Agriculture reported that exporters sold 136,000 tons of U.S. soybeans to China and 231,000 tons to "unknown destinations" - with both for delivery in the 2025/2026 marketing year that started September 1.

Wheat prices remained under pressure due to ample global supplies. Argentina's 2025/26 wheat harvest is forecast to hit a record 27.8 million tons, the Buenos Aires Grains Exchange said on Tuesday.

In Russia, Agricultural consultancy Sovecon on Tuesday raised its 2025/26 wheat exports forecast by 0.4 million tons to 44.6 million tons.

Market participants are also closely watching developments surrounding the Ukraine peace talks. A resolution to the nearly four-year conflict would likely weigh on wheat prices, as lower shipping risks could reduce export costs and improve access to Ukrainian ports. Ukraine is among the world's largest exporters of wheat and corn.

DATA/EVENTS

1330 US Initial Jobless Clm 27 Dec w/e