GRAINS-Chicago soybeans fall, but are set for first annual gain in three years

By Renee Hickman

CHICAGO, Dec 31 (Reuters) - Chicago soybean futures dropped on Wednesday but were set to log 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 were on track for annual declines, pressured by abundant supplies.

The most-active soybean contract on the Chicago Board of Trade was up 3.93% in 2025. Wheat was down 7.89% for the year, while corn was down 3.65%.

For the day, as of 11:33 a.m. CST (1733 GMT), most-active CBOT soybeans Sv1 were down 11-1/2 cents at $10.50-3/4 a bushel. Corn Cv1 was up 1 cent at $4.41-1/2 a bushel.

Most-active wheat Wv1 was down 2-1/2 cents at $5.08-1/4 a bushel.

Despite the trade truce with China, "the demand side of the equation continues to be a stumbling block for soybeans, and we saw that with the weekly export sales once again today," said Mike Zuzolo, president of Global Commodity Analytics.

The U.S. Department of Agriculture on Wednesday reported soybean export sales in the week ended December 18 of 987,100 metric tons for the current marketing year.

Zuzolo said, "Corn remains stellar in terms of export demand."

Wheat futures were pressured by global oversupply, said Zuzolo, shrugging off any support from escalation in the Russia-Ukraine war and lack of progress on peace talks.

Ukrainian drones on Wednesday damaged Russian energy infrastructure and disrupted Kazakhstan's oil exports. Ukraine is among the world's largest exporters of wheat and corn.

Argentina's 2025/26 wheat harvest is forecast to hit a record 27.8 million tons, the Buenos Aires Grains Exchange said on Tuesday. The current record stands at 22.4 million tons, reached four years ago.

CBOT grain markets will be closed on Thursday for the New Year's holiday.