CORN HIGHLIGHTS:

• Corn futures posted a disappointing close, as weakness in the wheat market and an ample supply outlook pushed prices off early-session highs. March corn 421-3/4 down 2 cents, while May corn 429-3/4 down 1-1/2 cents.
• Corn spreads remain under pressure due to the large supply backdrop, despite a solid demand pace. The reversal off the session high produced a bearish reversal on the March chart. Combined with continued weakness in wheat, the technical setup leaves corn vulnerable to a test of the report-day low.
• USDA announced two flash export corn sales Wednesday morning: Colombia purchased 150,000 MT (5.9 mb) and an Unknown Destination bought 195,000 MT (7.7 mb) for the current marketing year.
• The Argentina corn crop could be facing some short-term weather challenges with forecasts of hot and dry weather across parts of the growing region.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher thanks to positive trade talks between the U.S. and China. Dry weather in Argentina may have been supportive as well. March soybeans were up 11-1/2 cents to $10.64-1/2 while November is up 10-1/2 cents to $10.74-1/2. March soybean meal was down $0.20 to $291.40, while soybean oil gained 1.45 cents to 54.01 cents.
• Weather models continue to favor a wetter pattern across central Brazil, limiting near-term production concerns as soybeans enter the critical pod-filling stage. Southern Brazil and Argentina, however, are forecast to trend drier than normal over the next 10 days.
• Trade optimism resurfaced Monday, as Treasury Secretary Bessent held informal discussions with China’s Vice Premier. Additionally, U.S. Trade Representative Greer signaled the potential for another round of trade negotiations ahead of President Trump’s planned meeting with President Xi in April.
• Short covering rally in soybean oil helped push soybean futures higher on the day. Optimism regarding the bio-fuel mandate has triggered strong short cover in the soybean oil market in recent trading session as prices have reached the level of September 16 highs.

WHEAT HIGHLIGHTS:

• Wheat futures closed mixed, with Chicago and Kansas City finishing lower while Minneapolis managed a modest gain. A late-session rebound in the U.S. dollar—following comments from President Trump indicating he would not use force to obtain control of Greenland—pressured wheat into the close. March Chicago wheat 507-3/4 down 2-1/2 cents, March Kansas City 519-3/4 down 3-1/4 cents, and March MIAX 563-3/4 up 1-3/4 cents.
• The market continues to show limited concern over winterkill risk, despite an extreme cold front expected to impact the Midwest and Southern Plains in the coming days. Heavy snow and ice are forecast for parts of the Southern Plains this weekend; snowfall may provide some insulation, though areas receiving ice or minimal cover could still see crop damage.
• Ukraine’s 2025/26 wheat exports through mid-January totaled 8.2 MMT, down 20% year over year, as ongoing Russian attacks have disrupted shipping capacity. Despite near-term declines, Ukraine’s Deputy Prime Minister stated that long-term export volumes are not expected to be materially impacted.
• Much like in the U.S., Ukraine has seen very cold weather and icy conditions over the past couple of weeks. This has caused concern about damage to their winter wheat crop, primarily in southern and eastern areas. Reportedly, freezing rain has led to thick layers of ice in crop fields.

DAIRY HIGHLIGHTS:

• Class III milk closed mixed to mostly higher, with February gaining 5 cents to settle at $15.31.
• Class IV milk futures showed strength across the board, with February rising 48 cents to close at $14.45.
• Spot cheese closed higher, gaining 1.25 cents to finish at $1.35875/lb. Spot whey remained unchanged at $0.7350/lb.
• Spot butter had another strong session, gaining 5 cents to close at $1.460/lb. Spot powder closed unchanged at $1.260/lb.

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Author

Brandon Doherty