CORN
- Corn futures are trading higher to start the day as overall political tensions appear to be calming down as Trump backed down on his rhetoric to invade Greenland yesterday. March corn is up 1-3/4 cents to $4.23-1/2 while December is up 1 cent to $4.50-3/4.
- On Wednesday, the USDA reported two separate flash sales in corn. On sale was for 150,000 metric tons to Colombia for the 25/26 marketing year and the other was a sale of 195,000 tons to unknown destinations.
- Rules allowing year round sales of E15 gasoline across the country are now headed to the House included in a bipartisan budget bill. This would be a demand driver that could cause a rally in corn.
SOYBEANS
- Soybean futures are trading higher following yesterday’s rally that was started by positive trade talks between the US and China. March soybeans are up 4-3/4 cents to $10.69-1/4 while November is up 4-1/2 cents to $10.78-1/2. March soybean meal is up $3.10 to $294.50 and bean oil is down 0.09 cents to 53.92 cents.
- South American weather has been mostly positive for Brazil, while Argentina has been dry. Forecasts are now seeing increased rains throughout Argentina for the rest of January while conditions in Brazil are expected to turn drier.
- Yesterday, a short covering rally in soybean oil helped push soybeans higher. This was largely due to optimism over the bio-fuel mandate which has triggered the short covering.
WHEAT
- All three wheat classes are trading higher this morning along with the rest of the grain complex. March Chicago wheat is up 3 cents to $5.11, KC wheat is up 2-3/4 cents to $5.22-1/2, and Minn wheat is up 3-1/4 cents to $5.67.
- The outlook for the US winter wheat crop remains steady with the seasonal weather patterns with production estimates for 26/27 at 36.6 mmt with 33.01 million acres planted. The extent of snow cover will be crucial as wheat heads into dormancy.
- Ukrainian wheat exports for 25/26 through min-January have reached 8.2 mmt which is down 20% year over year with ongoing Russian attacks disrupting shipping capacity.
Author
Amanda Brill