CORN HIGHLIGHTS:

• Corn futures slid on Tuesday as heavy selling in wheat and soybeans spilled into the corn market. March corn fell 3½ cents to 436½, while May dropped 3¼ cents to 444½.
• The weakness in corn prices created some technical damage to the corn charts as March corn closed under the 100-day moving average for the first time since October 23. With the weak technical close, the corn market could be open to further selling pressure going into the end of the week.
• As the calendar turns toward 2026, South American weather will take on greater importance. Conditions in Brazil remain generally favorable for now, but longer-range forecasts hint at drier trends developing in Argentina. With January being a key window for weather risk, markets may look to add premium if conditions turn more challenging.
• Strong selling pressure in crude oil markets weighed on the broader commodity complex today. The lower crude oil prices impact corn as ethanol margins may tighten, limiting demand.
• Wheat futures broke to new contract lows on Tuesday, and low wheat prices could impact corn feed demand as wheat can be a substitute in some animal rations.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower for the third consecutive day as funds continue to pressure the market. March futures finally closed their gap at $10.76 and continued lower. January soybeans lost 9 cents to $10.62-3/4 while March lost 9-1/2 cents to $10.71-3/4. January soybean meal lost $1.10 to $302.40 while January soybean oil lost 1.12 cents to 48.36 cents.
• Yesterday’s export inspections report was sluggish for soybeans at 796k tons, compared to 1,025k tons the previous week and 1,696k a year ago with inspections down 53.1% on the year. Top destinations were to China, Germany, and Vietnam.
• November NOPA U.S. soybean crush fell to 216.04 million bushels after hitting an all-time high in October of 227.6 million bushels. This was a drop of 5.1% from October, but crush was up 11.8% from the same month a year ago. With export demand only recently picking up, prices are relying on solid domestic demand to move higher.
• China’s state stockpiler Sinograin sold 323,000 metric tons, or 63%, of imported soybeans at auction on Tuesday at roughly $547/mt. The sales help clear inventory and could make room for additional U.S. soybean purchases.

WHEAT HIGHLIGHTS:

• Wheat finished modestly to sharply lower in a risk-off session, with bear spreading evident in Chicago. March Chicago fell 11-1/4 cents to 509-1/2, Kansas City lost 7 to 505, and MIAX slipped 3-3/4 to 565. Pressure came from Paris milling wheat making new lows, weakness in corn and soybeans, and a softer stock market after U.S. unemployment ticked up to 4.6%. Added talk of progress toward a Russia-Ukraine peace deal further weighed on the wheat complex.
• Daily stochastics show all three U.S. wheat classes are now technically oversold. With managed funds estimated to be net short, the market is increasingly vulnerable to a bounce—but it will likely take a fresh piece of friendly news to spark a sustained rally.
• European Union soft wheat exports have reached 10.5 mmt as of December 14, which represents a decline of 3% year over year.
• Egypt’s supply minister said wheat imports for 2025 are running 17% below last year, largely because domestic procurement has surged to 4 MMT. Officials also noted that the country currently holds roughly six months’ worth of wheat stocks.
• The French farm ministry is estimating that their nation’s soft winter wheat planted area will reach 4.56 million hectares next year. This would be an increase of 2.3% versus 2025, though it would still be just under the five-year average. Their durum wheat area is also expected to increase from 197,000 to 199,000 hectares.

DAIRY HIGHLIGHTS:

• Class III futures were mixed today with most holding small gains. January was the biggest mover, closing up 9 cents at $15.85.
• Spot cheese was up 0.875 cents to move back to just under the $1.40/lb mark. Whey was unchanged today at $0.75/lb.
• Futures on the Class IV side were mostly unchanged but the January and February contracts fell 2 and 12 cents, respectively.
• Both underlying Class IV spot products were lower today with butter giving back 1.25 cents and powder falling 0.75 cents.

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Author

Amanda Brill