By Paulo Trevisani


--Soybeans for March delivery rose 0.1% on the Chicago Board of Trade Friday, to $10.62 1/2 a bushel, as markets braced for rising estimates in Monday's USDA supply and demand projections.

--Corn for March delivery fell 0.1% to $4.45 3/4 a bushel.

--Wheat for March delivery fell 0.1% to $5.17 1/2 a bushel.


HIGHLIGHTS


Expensive Soybeans: Future soybean contracts recovered some ground while markets worried about elevated global supplies. Attention turned to Monday's update of USDA projections. "It seems that the market is now more concerned about big supplies coming soon from South America with the soybeans harvest there just weeks away," Price Group's Jack Scoville wrote. He added that U.S. prices "are currently too high to complete many new sales." There were also talks that Brazilian soy growers could be holding on to their crops waiting for better prices. Meanwhile, the USDA reported flash export sales of 198,000 metric tons of soybeans to unknown destinations in the current marketing year.

EU-Mercosur Deal: Commodity markets didn't seem too impressed by news that EU member states approved a trade deal with the Mercosur group of South American countries, which includes agricultural powerhouses Brazil and Argentina. The news broke ahead of the U.S. trading session and was quickly swamped by robust economic indicators, as traders braced for potential increases in production projections by the USDA on Monday.


INSIGHT


Rising Supply: Monday's WASDE report "will reflect rising world production totals," AgResource said in a report. The firm says the USDA is expected to increase its estimate for Argentina's wheat production by up to 4 million metric tons. AgResource also mentioned that the 2025 Russian wheat crop could be above 90 million tons. Brazilian soybean estimates are also expected to rise, while the U.S. corn yield forecast is likely to be lowered, AgResource said.

Waiting Longer: Markets will have to wait a little longer for the expected ruling on tariffs, as it was missing among Friday's Supreme Court decisions. National Economic Council Director Kevin Hassett, however, said the U.S. government has a backup plan to keep the levies in place.


AHEAD


-The USDA will release its weekly Grain Export Inspections report at 11 a.m. ET Monday.

-The USDA will release its monthly World Agricultural Supply and Demand Estimates report at noon ET Monday.

-The EIA will release its Weekly Petroleum Status Update report at 10:30 a.m. ET Wednesday.

-The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.

-The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Monday.


Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

01-09-26 1501ET