CORN HIGHLIGHTS:

• Corn futures ended mixed to mostly lower as selling pressure weighed on the front end of the market. Uncertainty surrounding President Trump’s tariff announcement, set for release after Wednesday’s market close, likely led traders to reduce risk exposure.
• The corn market remains on edge over potential retaliatory tariffs from key trading partners, which could add further downside pressure in the coming sessions.
• Weekly ethanol production increased week over week to 312.5 million gallons/day, up 2.5 million gallons over last week. A total of 106.5 mb of corn was used last week to produce ethanol. This total was still trending slightly ahead of the pace needed to reach USDA targets for the marketing year.
• USDA will release weekly export sales on Thursday morning. Expectations for the week ending March 27, the total of new sales should range between 800,000-1.6 MMT for the week. Last week, new sales totaled 1.083 MMT of corn, within expectations. The USDA hasn’t announced a published corn sale of over 100,000 mt since March 14.
• Traders are closely monitoring a strong spring storm moving across the U.S. Corn Belt. Heavy rainfall is forecast for key growing regions in the southern Corn Belt, where saturated soils could raise concerns about planting delays.

SOYBEAN HIGHLIGHTS:

• Soybeans were lower to end the day ahead of President Trump’s tariff announcement at 3pm central this afternoon with concerns over retaliatory tariffs from China. Monday’s bullish acreage report seems to be taking a backseat until this announcement is out of the way. Soybean oil has been strong and closed higher, but soybean meal ended the day lower.
• Talk of improved U.S. biofuel subsidy policy boosted bean oil and soybean prices today and yesterday. Soybean oil futures managed today’s higher close despite the tariff threats which is encouraging. There are also reports that the U.S. may supply soybean oil to India at reduced tariffs.
• S. soybean crush for February totaled 189 million bushels, slightly above the average trade estimate of 188.7 mb. However, this was still 2.3% below last year’s February total and significantly lower than January’s crush of 212.6 mb.
• StoneX has reduced its outlook for the Brazilian soybean crop for 24/25 to 167.5 mmt. This is below the USDA’s last estimate of 169 mmt but would still be 12% larger than last year’s crop. Primary reductions were in the southern region of Rio Grande do Sul with a cut of 6.6% as a result of dryness.

WHEAT HIGHLIGHTS:

• Wheat had a mixed close, gaining in Kansas City futures but posting losses in Chicago and Minneapolis. Storms moving across the Midwest might be limiting upside for SRW wheat as they offer improved conditions. But the southwest Plains may miss some of the moisture, leading to a boost for HRW wheat. Tariff concerns are also on the minds of traders, and uncertainty may have also played a part in today’s mixed finish.
• According to the European Commission, EU soft wheat exports have reached 15.7 mmt as of March 20 since the season began on July 1. This is a 36% drop year over year, as 24.5 mmt of wheat was exported during the same time last year.
• The Ukrainian farm producer’s union, UAC, said that wheat exports for April are expected at 1 mmt. This remains high and compares with 1.1 mmt in March. The reason this is a high volume is due to the fact that the farm ministry has limited 24/25 wheat exports to 16.2 mmt and 13 mmt have already been shipped this season.

DAIRY HIGHLIGHTS:

• Class III milk futures closed mixed with May futures down 2 cents at $17.26 and June up a penny at $17.18.
• Spot cheese added 2.25 cents to close up at $1.68125/lb. Spot whey lost half a cent to close at $0.4900/lb.
• Class IV milk futures had uneventful day of trading with no contracts being traded for the 2025 year.
• Spot butter remained unchanged at $2.3400/lb along with powder which remained at $1.1725/lb.
• Milk prices settled at $18.62 for Class III and $18.21 for Class IV for the month of March.

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Author

Amanda Brill