CORN HIGHLIGHTS:

• Corn futures ended the week with moderate losses as the March contract slipped 5 cents, once again failing to break above the key $5 resistance level. This came despite strong export sales and support from the wheat market.
• The USDA announced weekly export sales totals on Friday morning. For the week ending February 13, U.S. exporters posted new sales of 1.454 MMT (57.2 mb). Total accumulated sales are now running 29% above last year and well ahead of the pace to reach the USDA corn export target.
• The Buenos Aires Grain Exchange raised its corn crop ratings, citing recent rainfall that helped stabilize conditions. The percentage of the crop rated “good” increased by 3%, while the “poor” category declined by the same amount.
• Recent improved weather in the Brazil state of Mato Grasso has allowed corn planting of the second crop corn to catch up to pace. The Brazil Ag analyst group IMEA forecast the corn planting in Mato Grasso is 67.2% complete, just slightly behind the 5-year pace of 70.2%. Mato Grasso produces just under 50% of the Brazil second crop corn.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower but have maintained a narrow trading range over the past week. Pressure today came from poor export sales and a general decline in export demand recently. Soybean meal was mixed with losses in the front months and gains in the deferred contracts while soybean oil was lower.
• Today’s export sales report were poor for soybeans with an increase of 18 million bushels. While this was within trade expectations, export demand has slipped with ongoing Brazilian harvest. Sales were up from last week, but down 23% from the previous 4-week average.
• For the week, March soybeans gained 3-1/2 cents to $10.39-1/2 while November soybeans gained 7-3/4 cents to $10.59-3/4. March soybean meal lost $1.10 to $294.80, and March soybean oil gained 0.74 cents to 46.81 cents.
• The International Grains Council decreased their estimate of global soybean production by 2 mmt to 418 mmt. This is said to be largely due to smaller production in Argentina and Paraguay. For reference, the USDA’s February forecast sits at 421 mmt.

WHEAT HIGHLIGHTS:

• In the face of lower corn and soybeans, a higher US Dollar Index, and a negative close for Paris milling wheat futures, US wheat had a relatively strong close. Chicago futures led the wheat complex to the upside, despite little in the way of fresh news to drive the market. Support at the 10 day moving average has kept all three classes propped up.
• Weekly wheat export sales totaled 19.6 mb for 24/25 and 3.6 mb for 25/26. Shipments last week at 8.6 mb fell below the 19.5 mb pace needed per week to reach the USDA’s export estimate of 850 mb. Total commitments at 724 mb are up 11% compared to a year ago, though the USDA forecast calls for a 20% increase.
• CoBank estimates US spring wheat acreage will decline 6% to 10 million acres this year. Next week’s USDA Outlook Forum may provide further insight, though it won’t be official data.
• The Russian ag ministry is reported to have reduced their wheat export tax by 24.6% to 2,742.60 Rubles per mt, valid through March 4.

DAIRY HIGHLIGHTS:

• Class III futures were mostly lower led by the April contract, which was down 21 cents on the day to $18.71.
• Spot cheese improved 0.75 cents to close out the week at $1.85/lb. Whey was unchanged for a third day in a row at $0.5450lb.
• Class IV futures saw small losses on most contracts with only the February contract trading in the green today.
• Spot butter lost 0.75 cents but still remains 3.75 cents higher on the week at $2.4150/lb. Powder fell for a third straight day to close at $1.24/lb.

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Author

John Heinberg