By Kirk Maltais


-- Soybeans for January delivery fell 1.2% to $14.61 3/4 a bushel Monday on the Chicago Board of Trade, with traders viewing China's relaxing of Covid-19 restrictions as hurting export demand.

-- Corn for March delivery fell 0.8% to $6.47 1/2 a bushel.

-- Wheat for March delivery fell 0.7% to $7.48 1/2 a bushel.


HIGHLIGHTS


Process of Reopening: The process of China's reopening from strict Covid-19 restrictions, and the potential influx of new cases that comes with it, is putting pressure on grain and livestock futures alike amid an otherwise lackluster day.

"The Chinese reopening is hitting speed bumps as reality trumps the narrative with Covid really hurting demand in China over the short run," said John Payne of Hedgepoint Global in a note.


Pick Your Poison: Buying interest for U.S. grains was overall light, with traders finding multiple reasons to take a hands-off approach toward futures.

"It's kind of a pick your poison day in the markets," Karl Setzer of MidCo Commodities told the WSJ.

Year-end profit-taking and improved weather forecasts are pressuring grains Monday, Mr. Setzer said. "A general lack of buying interest is in full effect."


INSIGHTS


Extracting Risk: Adverse weather in South America and cold weather in the U.S. have been a source of gains for grain futures in recent sessions, but traders are slowly taking that risk premium out of futures.

"The CBOT is adding and extracting weather premium in a preholiday trade," said AgResource in a note.

Cold weather is expected to continue in the middle of the U.S. throughout the week, with snow in the forecast for some regions. However, the weather is expected to turn warmer next month.


Inspection Uptick: Export inspections for U.S. corn and wheat turned higher in the past week, while soybean inspections inched lower.

In its latest grain export inspections report, the U.S. Agriculture Department said corn export inspections totaled 743,420 metric tons for the week ended Dec. 15, while wheat inspections totaled 304,108 tons. Both totals are higher than reported last week by the USDA.

Meanwhile, soybean inspections slid slightly to 1.62 million tons for the week, down from 1.88 million tons last week.

China was the leading destination for U.S. soybeans of over 1 million tons. China was also the leading destination for over 400,00 tons of U.S. corn. Japan and South Korea were the leading destinations for U.S. wheat.


AHEAD


-- The EIA is scheduled to release its weekly ethanol production and stocks report at 10:30 a.m. EST Wednesday.

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

-- The USDA is scheduled to release its monthly Cold Storage Report at 3 p.m. EST Thursday.

-- The USDA is due to release its monthly livestock slaughter report at 3 p.m. EST Thursday.


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


(END) Dow Jones Newswires

12-19-22 1604ET