Wheat and corn futures in the US were mostly sideways overnight while soybeans managed gains of 9c/bu (AUD$4.60) on the nearby contracts. It was more of the same news, China trade talks, dry in Brazil but with a long weekend thrown into the mix, with the US taking Monday off for Martin Luther King Day.
Rumours were said to have triggered a round of buying when the punters heard (or invented) that officials were expected to drop some tariffs on US imports of Chinese goods. This was denied by the White House but seemed to gain some traction. With Chinese diplomats due in the States for another round of talks at the end of the month it was a timely rumour.

Russia was said to have been discussing ways to fix domestic wheat values to prevent further food inflation as stocks become tighter. This is probably just another rumour. I’ve always been amazed at the assumption increased wheat values will have on “food” prices. There is usually less than 10c worth of wheat in a loaf of bread.
The punters will need more than rumours to justify a move higher from here. Weather in the northern hemisphere is generally benign apart from some talk of a cold snap in the USA potentially hurting up to 30% of the winter wheat crop due to limited snow cover. In the past we’ve seen winter kill often countered by a good spring. The real news the market is in search for will come from the USDA which is currently on an extended holiday thanks to Donald.