CORN HIGHLIGHTS:

• Corn futures recovered from session lows to close mixed. Ample nearby supplies and the approaching March basis pricing window pressured the front end of the curve. March slipped 1¼ cents to 427½, while May eased ¾ cent to 436½.
• Corn prices are testing key levels of support on charts as concerns regarding large supplies weigh on the market. Wheat prices were trading higher on Wednesday, which likely helped support corn prices.
• USDA announced a flash sale of corn on the export market on Wednesday morning. Unknown destination stepped into the market and purchased 230,650 MT (9 mb) of corn for the current marketing year
• UDSA will release a weekly export sales report on Thursday morning. Expectations for sales are to range from 600,000 – 1.5 MMT; last week, sales totaled 1.04 MMT. Going into this report, there has been only one reported sale of corn as 130,480 MT for corn was sold to unknown destinations during the reporting period.
• Longer term, traders remain wary that U.S. export demand could decelerate as new South American supplies reach the global market at more competitive prices. Argentine corn offers are reportedly running roughly 20 cents per bushel below comparable U.S. values, intensifying competition.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher and gained from lows earlier in the day to take out yesterday’s high. Support likely came from the wheat market which rallied significantly. March soybeans gained 1-1/2 cents to $11.24 while November gained 4 cents to $11.10-1/2. March soybean meal gained $2.20 to $303.00 and March soybean oil lost 0.22 cents to 57.05 cents.
• USDA raised its Brazilian soybean production estimate to 180 mmt. CONAB is expected to update its figures soon, with trade estimates near 179.5 mmt versus 176.1 mmt last month, reflecting both higher yields and expanded acreage.
• In South America, Brazil has seen heavy rainfall in the southern regions, which has been favorable for the last of the soy crop filling pods but may be causing mold for mature beans. This has also made it difficult for farmers to switch from soybeans to safrinha corn. Argentinian weather forecasts have better chances for rain, but the country is still dry with low soil moisture levels.
• In 2026, global palm oil production is expected to decline according to the executive director of ISTA Mielke Gmb. Top growers Indonesia and Malaysia will likely see lower output, and total production is expected to fall to 84.5m tons from 85.24 a year ago. This would theoretically be bullish for soybean oil which has already been making new contract highs.

WHEAT HIGHLIGHTS:

• Winter wheat futures closed sharply higher without much in the way of fresh news to drive the rally. Bull spreading, in which there is more buying interest in nearby contracts compared to deferred, was noted in both winter classes. Spring wheat futures, however, posted only small gains. This could indicate that the rally in winter wheat was largely technical in nature. March Chicago gained 9 cents to 537-1/4, Kansas City climbed 8 cents to 538-1/2. And MIAX was up 2 cents at 570-1/4.
• European Union soft wheat exports through February 8 are said to be up 2% year over year at 13.43 mmt. Meanwhile, Ukraine continues to struggle with a slow export pace due to Russian attacks. They are reported to have shipped only 27,000 mt this month so far, out of about 700,000 mt contracted in total.
• Despite logistics challenges, the USDA left their estimate of Ukraine’s total wheat exports unchanged on yesterday’s report at 14 mmt. Nevertheless, ag consultancy APK-Inform recently lowered their estimate of Ukrainian wheat exports from 16.7 mmt to 14.5 mmt for the 25/26 season.
• The Trump Administration signed a trade agreement with Bangladesh that includes approximately $3.5 billion in U.S. agricultural purchases. Bangladesh has committed to buying 700,000 mt of U.S. wheat annually for five years, though 676,000 mt had already been purchased as of January 29. The agreement should provide incremental support to U.S. wheat export demand.

DAIRY HIGHLIGHTS:

• Class III futures ended today’s session mixed to mostly higher. March fell 4 cents to close at $16.32, while April gained 2 cents to settle at $16.66.
• Class IV milk futures also ended the session mixed, with April gaining 15 cents to close at $17.30.
• Spot cheese posted another loss today, falling 2.5 cents to close at $1.41625/lb. Spot whey was unchanged on the session at $0.720/lb.
• Spot butter gained another 1.75 cents today, closing higher at $1.6525/lb. Spot powder slipped half a cent to settle at $1.5950/lb.

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Author

Amanda Brill