CORN HIGHLIGHTS:

• Corn futures finished slightly higher, supported by strong demand and buying in the wheat market. The front end of the market saw the most active buying, lifting deferred futures.
• Weekly corn export inspections were strong at 1.820 MMT, exceeding the top end of expectations. Total corn inspections are trending 33% higher than last year and remain ahead of the pace needed to reach the USDA export target.
• The USDA announced a flash sale of corn on Monday morning. Japan stepped into the export market and purchased 126,000 MT (5.0 mb) of corn for the current marketing year.
• Second crop corn planting in central and southern Brazil is on pace. Ag consulting group AgRural estimates corn planting in those key regions to be 92% complete, only 1% behind last year’s pace.
• Brazil weather conditions for development of the second crop corn will be a major focus in the market. Mato Grasso, Brazil’s largest corn producing province is see very good weather conditions, but area wet and south of Mato Grasso are concerned as forecasts remain warm and dry for that region.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower with pressure from both soybean meal and oil after a Chinese decision was announced to place tariffs on Canadian canola products. A slow export pace and large Brazilian crop continue to bring prices lower in a downward trending market over the past month. The USDA reported a sale of 195,000 tons of soybeans to unknown destinations for 24/25.
• Over the weekend, China announced that they would place 100% tariffs on Canadian canola meal, oil, and peas. This caused Canadian prices to tumble and had a spillover effect into the US market. General uncertainty over tariffs between the US, China, and Canada have also lent to the recent weakness in soybeans.
• The USDA will release its WASDE report tomorrow at 11 a.m., but few changes are expected. Ending stocks for 24/25 soybeans are expected to remain unchanged at 380 mb, as any declines in export demand are likely to be offset by increased crush demand.
• Today’s export inspections report saw soybean inspections totaling 31 mb for the week ending March 6. This was towards the higher end of trade estimates and was above last week. Total inspections are now up 10% from last year.
• Friday’s CFTC report saw funds as sellers of soybeans by 43,696 contracts leaving them with a new net short position of 35,487 contracts. They sold 33,383 contracts of bean oil and 22,151 contracts of bean meal.

WHEAT HIGHLIGHTS:

• Wheat posted double-digit gains across all three classes, led by Kansas City. Paris milling wheat futures added support after opening slightly higher. Additionally, drier weather, record high temperatures, and heavy winds in the U.S. Southern Plains this week could negatively impact the winter wheat crop as it exits dormancy.
• Weekly wheat inspections reached 7.9 mb, bringing total 24/25 inspections to 582 mb, up 20% from last year. However, inspections are lagging the USDA’s projected pace, with total 24/25 exports estimated at 850 mb, an 18% increase from the previous year.
• According to IKAR, the Russian wheat export price declined last week by $1 to $247/mt. Additionally, SovEcon reported that Russia’s wheat exports last week totaled 310,000 mt, up from the 280,000 mt the week before. However, they are projecting March ’25 exports at 1.4-1.8 mmt which would be far below 4.8 mmt of exports in March ’24.
• Friday afternoon’s data from the CFTC indicated that managed funds added nearly 18,000 contracts to their net short position in Kansas City wheat between February 25 and March 4. This is about an 84% change for the week and brings their total net short in KC wheat to about 39,000 contracts. In Chicago wheat, they added just under 15,000 shorts in the same time period, for a total net short of just over 82,000 contracts.

DAIRY HIGHLIGHTS:

• Class III futures were mostly lower today with the April through September 2025 contracts losing 1 to 9 cents.
• After a rough couple of weeks, spot cheese was down just 0.75 cents today, while whey was unchanged.
• Class IV futures were mixed with the second month April contract up a penny to $18.21.
• Spot powder closed a quarter cent higher at $1.1575/lb amid an unchanged spot butter trade.

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Author

John Heinberg