CORN HIGHLIGHTS:

• The corn market remained firm against selling pressure in the other grains to start the week as futures finished with mild market gains.
• Weekly corn export inspections remained supportive, as US exporters shipped 1.130 mmt of corn last week. Year over year, inspections are 31% higher and remain ahead of the pace needed to meet the USDA’s adjusted export targets.
• Managed funds continued buying in the corn market. Supported by the Dec. 10 USDA report and friendly demand adjustments, funds increased their net long position to 165,890 contracts, up 77,760 from the prior week. Money flow could be a key factor for the corn market heading into 2025.
• Brazilian agriculture analysts AgRural raised their corn production forecast to 121.3 mmt, citing favorable weather patterns and increased planted area.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day significantly lower, nearing a downside breakout of their recent range, but did not take out last month’s contract low of 982 ½ for the March contract. Soybean meal managed to close higher, while soybean oil ended lower after a disappointing NOPA crush and lower palm oil.
• Today’s export inspections report was solid, with soybean inspections totaling 61.6 million bushels for the week ending December 12. This brought total inspections for 24/25 to 927 mb, up 19% from last year.
• November NOPA crush totaled 193.185 million bushels, marking the largest November crush on record. This was up 2.2% year-over-year but down from October’s crush and below the average trade estimate of 195.911 mb.
• Friday’s CFTC report showed managed funds as buyers of 13,897 soybean contracts, reducing their net short position to 58,320 contracts as of December 10. Despite fund buying, soybeans only moved three cents higher during that week.

WHEAT HIGHLIGHTS:

• Wheat closed mixed after two-sided trade, with Chicago front-months finishing lower and deferred contracts posting small gains. Kansas City ended near its daily low but stayed positive, while Minneapolis made modest gains. The trade seemed weak despite a slightly lower US Dollar and strong Paris milling wheat futures.
• Weekly wheat inspections totaled 11 mb, bringing the 24/25 inspections to 424 mb, up 29% from last year. Inspections are running ahead of the USDA’s estimated pace. Exports for 24/25 are projected at 850 mb, which would be a 20% increase from the previous year.
• Saudi Arabia reportedly purchased 804,000 mt of wheat in a tender at prices ranging from $262.50 to $269.89 CNF. The wheat is expected to originate from Bulgaria, Romania, South America, and Russia, with shipments scheduled between February 25 and April 25.
• The United Arab Emirates has offered a $500 million loan to Egypt for wheat purchases, with $100 million disbursed annually over five years. As Egypt’s military has taken over wheat procurement from GASC, it remains unclear how this arrangement will be implemented.

DAIRY HIGHLIGHTS:

• Class III futures were mostly green today with the second month January contract gaining 31 cents to finish at $20.30.
• Spot cheese started the week 1.25 cents higher at $1.77625/lb, but sellers took spot whey 4.75 cents lower to $0.7450/lb.
• The only Class IV contract that moved today was March 2025 which fell 7 cents to $20.53 while January was unchanged at $20.60.
• Powder was unchanged today while butter gained 3.50 cents to move back to $2.50/lb.

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Author

John Heinberg