CORN HIGHLIGHTS:

• Corn futures stayed under pressure to start 2026 as prices tested recent support levels, despite an announced daily corn export sale. March traded 2 ¾ cents lower to 437 ½ and May futures close 2 ¾ cents lower to 445 ½. For the week, March futures lost 12 ½ cents and posted its lowest weekly close since October.
• USDA reported a flash export sale on Friday morning, with South Korea purchasing 132,000 metric tons (5.2 mb) of corn for the current marketing year.
• Despite recent price weakness, U.S. corn export demand remains a supportive factor. U.S. corn continues to be competitively priced on the global market, with total export sales running 31% ahead of last year and at a record pace for this point in the marketing year.
• On Wednesday afternoon, USDA announced commodity payment rates under the Farmer Bridge Assistance Program. The payment rate for corn was set at $44.36 per acre, with payments expected to be distributed by the end of February.
• The corn market will be looking forward to the January 12 WASDE and Crop Production report. This will be the last Crop Production report where the USDA can adjust yield estimates until the September Grain Stocks report.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower heading into the weekend but came back significantly from lows earlier in the day. January soybeans lost 1 cent to $10.29-1/2 and today was first notice day. March soybeans lost 1-3/4 cents to $10.45-3/4 but its low this morning was $10.38. March soybean meal lost $3.40 to $296 while March soybean oil gained 0.74 cents to 49.30 cents.
• Trading volume was light due to the holiday, and there was little fresh news to guide the market. Although soybeans broke through key fundamental support over the past two sessions, today’s recovery — combined with seasonal buying tendencies — keeps the door open for a potential bounce next week.
• CFTC data was released for the week ending December 23 and it showed funds as sellers of soybeans by 37,375 contracts which reduced their net long position to 110,403 contracts. They sold 12,853 contracts of meal leaving them short 6,633 contracts. They sold 26,078 contracts of bean oil increasing their net short position to 67,118 contracts.
• Export sales were released for the week ending December 18 and showed soybean sales at 982k tons which compared to 2,425k the previous week and 1,103k tons the year prior.

WHEAT HIGHLIGHTS:

• Wheat started the new year mixed, as the market remains under pressure from persistent supply concerns that have weighed on it for several months. March Chicago wheat is down at 5.06½, while March Kansas City wheat is also lower at 5.14½.
• The wheat market continues to have little new information to trade on at the start of 2026. Tensions in the Black Sea remain high as the Russia-Ukraine conflict persists, with attacks occurring over the New Year’s holiday. The continued lack of resolution and absence of major developments leave the market with limited fresh news to react to, but technical pressure and spillover weakness from other grains are keeping wheat markets active.
• The USDA announced trade aid payments for wheat at $39.35 per acre, which are expected to be disbursed by late February 2026.
• SovEcon raised its Russian wheat export forecast by 0.4 mmt to 44.6 mmt, compared with the USDA estimate of 44 mmt. Meanwhile, U.S. export sales are up 19% year-over-year, well above the USDA forecast of a 9% increase.
• As we head into January, warmer weather is expected to reduce winterkill concerns in the U.S. Plains during the first half of the month. However, any polar intrusion in mid- to late January could increase the risk of winterkill damage to crops, particularly in areas with little to no snow cover.

DAIRY HIGHLIGHTS:

• Class III milk futures were pressured lower to start the new year. The February contract led the way, dropping 27 cents to close out the week at $15.33.
• Spot cheese tacked on just shy of a penny today to close out the week at $1.3950/lb. Whey fell 1 cent to $0.7250/lb.
• Class IV milk futures were also lower on the day due to a new low in spot butter. January futures lost 22 cents to finish out the week at $13.55.
• Spot butter fell to its lowest level since February 2021 at $1.3750/lb while powder stayed steady at $1.1750/lb.

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Author

John Heinberg