Soybean futures extended losses on Monday after falling under technical pressure last week. January soybeans traded about a dime lower by midday today to as low as $10.92 ¾. Prices broke below the $11 level for the first time since the Trump administration announced that China would begin buying U.S. soybeans.

The price of U.S. soybeans for shipment to China have been trading at a large premium compared to Brazil since November. Despite the unsustainable price level, U.S. Treasury Secretary Scott Bessent said China is on track to meet its pledge to buy 12 million metric tons of U.S. soybeans by the end of February. As of Monday, China was confirmed to have bought at least 2.84 MMT of soybeans.

Recent rainfall in Brazil is likely pressuring the soybean complex this week. Brazil’s primary growing state of Mato Grosso received substantial rainfall over the past week, reversing precipitation deficits that were prominent in November.

Brazilian consultancy firm AgRural said last week’s rains helped improve crop conditions in Mato Grosso, as well as boost the planting progress in other regions. Brazil’s soybean planting reached 94 percent complete as of Dec. 4.

Multiple weather models predict above-average precipitation over the next two weeks, which could continue to aid crop development.

The USDA will release its December WASDE report on Tuesday, which is expected to show a slight increase in the U.S. soybean carryout.

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