CORN

• Corn futures continue trading higher at midday, supported by strength in soybeans and wheat as well as positive export data. March corn is up at 4.44 ¾.
• Some pressure during yesterday’s trade came from Dr. Cordonnier raising his Argentina corn production forecast by 2 MMT to 54 MMT, mainly due to increased planted area.
• Patchy dryness in central and northeast Brazil is limited to less than 20% of the first corn crop, and week-two rainfall is forecast to keep crop stress to a minimum.
• Brazil’s Trade Ministry reported December corn exports were up 43.6% from a year ago.
• Ethanol production fell to 323 million gallons for the week ended Friday, January 2, down from 329 million. Production came in below expectations but remains above the pace needed to reach the USDA’s corn usage forecast of 5.60 billion bushels.

SOYBEANS

• Soybeans are posting gains at midday following additional purchases by China during yesterday’s trade, with the entire soy complex showing strength. March soybeans are pushing higher at 10.65 ½.
• Weather models continue to show favorable conditions for Brazil, with only patchy dryness. January remains the key month for moisture for Brazil’s crops.
• Brazil’s Trade Ministry reported December soybean exports at 3.383 million tons, up 69% from a year ago, while soybean meal exports reached 2.111 million tons, slightly above last year’s 2.05 million tons.
• A Supreme Court ruling on the legality of some tariffs is expected Friday, according to Washington sources.

WHEAT

• Wheat futures climbed across all classes following yesterday’s U.S. Crop Condition report, which showed a significant decline in good-to-excellent ratings across the Plains. March Chicago wheat closed higher at 5.17½, while March Kansas City wheat reached 5.27½.
• The state conditions report released on November 24, compared with yesterday’s report, showed declines in good-to-excellent ratings of 26% in Colorado, 14% in Nebraska, 9% in Oklahoma, 6% in Texas, and 2% in Kansas. Over the next two weeks, central and eastern Kansas are expected to see chances for moisture, along with northern Oklahoma, while the remainder of the Plains is forecast to remain dry.
• Limited snow cover continues to be a concern regarding winterkill, though no extreme cold conditions appear in the forecast through the third week of January.
• China’s vice premier said winter wheat planted area in the country is stable, though seeding conditions are poor in some regions.

Author

Lauren VandenLangenberg