CORN HIGHLIGHTS:

• Corn market trades higher on the session as money flow pushed prices higher on the session. May corn futures 2 ¾ cents to 430 ½, and May futures added 3 ½ cents to 442. December futures closed with new highs for the year, settling at 467 on the session.
• Reuters reported that the U.S. Environmental Protection Agency will send its proposal for new biofuel blending volumes mandates to the White House on Wednesday, and the rule likely will be finalized by the end of March.  Optimism regarding the blending mandates has supported both corn and soybean markets.
• USDA will release weekly corn export inspections on Thursday morning.  Expectations for new corn sales are to reach 900,000-1.8 MMT for the week ending February 19.  US corn remains a good value on the export market.
• Improved forecast in Brazil with decent rainfall coverage will be helping newly planted second crop corn to get off to a good start.  Brazil is forecast to produce a second corn crop ranging from 135-140 MMT by this summer.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher closing near their highs of the day with support from biofuel blending mandates which are being sent to the White House today. March soybeans gained 8-3/4 cents to $11.48-1/4 while November gained 6-1/s cents to $11.27-3/4. March first notice day is on Friday. March soybean meal gained $7.60 to $318.30 and March soybean oil gained 0.23 cents to 60.26 cents, a new contract high.
• The EPA will send its proposal for the new biofuel blending mandates to the White House today and is expected to be finalized by the end of March. This could drive more demand towards soybean oil which would increase crush numbers. An increase in domestic demand may slightly offset the recent drop in exports.
• Brazilian soybean exports are expected to reach 10.69 mmt in February which would compare to 11.46 mmt the previous week. Weather in the country has been mostly favorable for the corn planting with heavy rainfall moving through the northern areas, but wet weather in the south may be slowing harvest progress.
• Strong crude oil markets which have been building premium due to a possible U.S.-Iran conflict have added strength to the soybean oil market, which has helped support soybean prices and brought them to contract highs.

WHEAT HIGHLIGHTS:

• Winter wheat suffered another day of long liquidation. A combination of lower momentum for the winter classes, a lower close for MATIF wheat, and little fresh friendly news all worked to keep pressure on the market. Spring wheat did manage to squeeze out a positive close, however. March Chicago was down 1-3/4 cents at 565-3/4, Kansas City fell 1-3/4 cents to 552-1/2, and MIAX gained 4 cents to 583-1/2.
• According to IKAR, Russian wheat export values finished last week at $233/mt FOB, which is unchanged from the previous week. Reportedly, strength in the Russian Ruble and limited shipments supported export prices; stormy weather and ice are making it difficult for vessels to travel from Russian ports through the Caspian and Baltic seas.
• Ukrainian state weather forecasters indicated that as of February 10, weather conditions have been satisfactory for winter crops since the beginning of winter. This has perhaps reduced concern over crop damage from recent cold spells.
• Israel will reportedly increase imports of US wheat in an effort to reduce tariffs on goods shipped from them to the US. The prime minister aims to eliminate a tax free quota and increase levies to 50% for wheat-feed imported from countries other than the US.
• The US forecast calls for well-above-normal temperatures across the central and southern Plains over the next 10 days. Warmer conditions may support winter wheat emergence from dormancy, though persistent dryness remains a risk factor.
• On a bullish note, Indonesia has agreed to purchase more wheat this year over year. There is talk that they will buy 2 mmt, nearly double the 1.1 mmt total from last year.

DAIRY HIGHLIGHTS:

• Class III milk futures showed strength today, with the March contract up 51 cents to $16.88 and April gaining 63 cents to $17.85.
• Spot cheese gained 5.625 cents to close at $1.58125/lb, while spot whey was unchanged on the day at $0.6375/lb.
• Class IV milk futures posted gains, with the April contract up 50 cents to close at $19.80.
• Spot butter gained 2.25 cents to close at $1.8350/lb, while spot powder also rose 2.25 cents to finish at $1.6725/lb.

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Author

Amanda Brill