GRAINS-Soybean futures fall as China looks to Brazil for imports

BEIJING, Jan 27 (Reuters) - Chicago Board of Trade soybean futures fell on Tuesday as traders anticipated that China, the biggest importer, would ramp up purchases of cheap and plentiful beans from Brazil, potentially dampening demand for U.S. soy.

Wheat futures also slipped as concerns that cold weather could damage U.S. and Russian crops eased, and corn edged lower amid ample supply.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 had fallen 0.3% to $10.59 a bushel by 0223 GMT, with CBOT wheat Wv1 down 0.4% at $5.20-1/4 a bushel and corn Cv1 0.1% lower at $4.28 a bushel.

China is expected to increase soybean imports from Brazil in the first half of 2026 due to a bumper Brazilian harvest and competitive prices, traders said.

China's locking in of Brazilian cargoes could hit demand for U.S. soybeans when the North American export season begins in September.

Brazil is the world's largest soybean producer and exporter and is expected to produce a record 181 million metric tons of soybeans, agribusiness consultancy AgRural said on Monday, raising its forecast from 180.4 million tons.

Farmers in Brazil had harvested 4.9% of the 2025/26 soybean crop as of last Thursday, up from 2% in the previous week and above the 3.9% seen at the same time a year earlier, AgRural said.

AgRural also increased its forecast for Brazil's 2025/26 total corn output to 136.6 million tons from 136 million tons.

Traders are closely monitoring extreme weather in Russia and the U.S., which endured a severe winter storm over the weekend. Snow cover should shelter winter wheat in many areas, analysts say.

Also in Russia, wheat export prices rose for the second week in a row due to persistent bad weather at Black Sea ports, which analysts say will continue to hold back shipments.

MARKETS

The yen held firm on Tuesday after two straight sessions of sharp gains as traders remained on alert to the prospect of a coordinated currency intervention by authorities in the U.S. and Japan.

Asian shares advanced, though uncertainty caused by President Donald Trump's latest tariff moves on South Korea limited broader gains. MKTS/GLOB

DATA/EVENTS (GMT)

1500 US Consumer confidence Jan