CORN HIGHLIGHTS:

• Selling pressure from wheat weighed on corn Wednesday, pulling futures off early highs to close with moderate losses. The March contract’s failure to hold the $5 level could spark additional long liquidation as the market nears overbought conditions.
• March corn options expire on Friday, which could bring some volatility as positions prepare for that trading deadline. The 500 level of March call is the largest area of open interest, and price may hold near that level.
• Improved weather in Brazil is accelerating second-crop corn planting, though progress remains behind in key regions. This crop will compete directly with U.S. corn in the summer export market.
• Strong demand continues to support old-crop corn, with exports and shipments well ahead of USDA targets. The market appears to be pricing in a lower carryout than the 1.54 billion bushels projected in the February USDA report.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower after falling from earlier morning highs. Wheat led the way in losses today bringing the entire grain complex lower apart from soybean meal. Soybean oil was down 1.14 cents to 46.15 cents in the March contract. Pressure has come from improving South American weather and Brazilian harvest.
• In Brazil, conditions have improved for harvest, and the state of Parana is now estimated to be 40% harvested as of this Monday. This was up 7% from the previous week, and 78% of the state’s soybeans have been rated good, 19% average, and just 3% poor.
• January’s NOPA crush came in at 200.38 million bushels, below the trade estimate of 204.5 mb and December’s 206.6 mb, but higher than last year’s 185.8 mb.
• Yesterday’s inspections report sales of 720k tons of soybeans inspected for export compared to 1,097k the previous week and 1,292k a year ago. Primary destinations were China, Egypt, and Mexico.

WHEAT HIGHLIGHTS:

• Wheat futures tumbled Wednesday, posting double-digit losses in Chicago and Kansas City, with Minneapolis not far behind. Technical correction played a role, as all three March contracts were overbought on daily stochastics. Easing winterkill concerns and a lower Matif wheat close added pressure.
• Conditions for the winter wheat crop in Texas were released by the USDA, with 33% of the crop rated good to excellent, representing a decline of 3% from the previous figure. Additionally, the fair category fell 3% as well. The poor category was raised by 6% to 24%.
• The new Egyptian state wheat buyer, Mostakbal Misr, is prepared to supply 2.7 mmt of wheat between January and the end of April to GASC. A reported 777,000 mt have already been received. These supplies will go towards Egypt’s national subsidized bread program. Egypt is a top global wheat importer, with the USDA estimating 12.5 mmt of imports during the 24/25 season.

DAIRY HIGHLIGHTS:

• Class III futures prices dropped with March down 52 cents to close at $19.08 and April losing 39 cents to close at $18.81.
• Spot cheese closed down 1.5 cents to end the day at $1.85250/lb. Spot whey also posted losses closing down 1 cent to close at $0.5450/lb.
• Class IV had a light trading day with March remaining unchanged at $19.26 and April gaining 2 cents to close at $19.15.
• Spot butter gained 3 cents today to close at $2.440/lb. while powder lost 1 cent to close at $1.2700/lb.

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Author

Amanda Brill