CORN HIGHLIGHTS:

• Strong selling in the wheat market and a slowdown in export inspections pressure corn prices to start the week. March corn futures lost 2 ½ cents to 425 ¾, and May futures traded 2 ¼ cents lower to 433 ½.
• USDA announced weekly export inspection on Monday morning. For the week ending January 29, a total of 1.136 MMT (44.7 mb) of corn was reported for shipment. This total was down 25% from last week’s total. The current shipment pace is still trending 50% ahead of last year, but the gap has been narrowing in recent weeks.
• According to the Brazil ag consulting group, AgRural, the second crop Safrinha corn planting is 13% complete as of last Thursday. This is 4% ahead of pace compared to last year. Brazil weather remains favorable for a projected record second corn crop for this summer.
• A strong move in the U.S. Dollar Index has put pressure on grain prices, as the dollar index has rallied 3 out of the past 4 sessions. In contrast, the Brazil real has reversed course and is trading softer to the U.S. dollar, helping the competitiveness of Brazil crops on the export market.
• February starts the beginning of the spring insurance price discovery for Dec 26 corn crop. Last year’s spring insurance price was $4.70 a bushel. December corn closed at $4.54 ½ today.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower under further pressure from the rising dollar index. Futures failed at the 100-day moving average last Thursday and have trended lower since. March soybeans lost 4 cents to $10.60-1/4, and November lost 4-1/2 cents to $10.75-1/4. March soybean meal gained $0.90 to $294.50, and bean oil lost 0.31 cents to 52.20 cents.
• Today’s export inspections report was solid for soybeans and came in within trade expectations and in line with the previous week’s numbers. Inspections totaled 48.2 million bushels for the week ending January 29, which put total inspections at 808 mb, which is down 36% from the previous year.
• December soybean crush is estimated at 230.4 mb, according to Reuters. If realized, this would be up 4.5% from November’s 220.5 mb and 5.9% above December 2024’s 217.7 mb. Analyst estimates range from 227 to 234.5 mb.
• Friday’s CFTC report saw funds as buyers of soybeans by 7,261 contracts, which increased their long position to 17,321 contracts. They bought 38,604 contracts of bean oil, leaving them long 38,604 contracts, and bought 6,401 contracts of meal, leaving them long 6,401 contracts.

WHEAT HIGHLIGHTS:

• Wheat closed lower today, negatively influenced by the sharp rise in the US Dollar Index and a lower close for Paris milling wheat futures. Aside from marginally higher soymeal, the pressure across the rest of the grain complex also did not bode well for wheat prices. March Chicago lost 10-1/4 cents to 527-3/4, KC was down 9-1/2 at 535-1/4, and MIAX slipped 6-3/4 to 571-1/2.
• Weekly wheat inspections were pegged at 12.0 mb, bringing total 25/26 inspections to 613 mb, up 19% from last year. Inspections are currently running above the USDA’s estimated pace – total 25/26 exports are forecasted at 900 mb, up 9% from the year prior.
• Friday’s CFTC data indicated that managed funds bought about 16,000 contracts of Chicago wheat and 3,000 of Kansas City. This reduced their net short position to about 105,000 contracts, between the two classes combined.
• According to IKAR, Russian wheat export values finished last week at $231/mt on a FOB basis. This is up $2 from the week before.
• India, which saw an unseasonably warm January, could also see warm and dry conditions during February. This could threaten their wheat yield, amongst that of other winter crops. Additionally, a member of the India Meteorological Department stated that the northwestern growing regions could receive less than 78% of long-term average rainfall.

DAIRY HIGHLIGHTS:

• Class III milk futures were lower to start the week with the March contract falling 51 cents to $16.02.
• Spot cheese improved slightly more than a penny to $1.3875/lb. Whey dropped 1 cent to $0.74/lb but still remains steady.
• Class IV milk futures were mixed among 2026 contracts with lackluster action in the spot trade. March futures gained 18 cents to $17.10.
• Both spot butter and powder were unchanged on the day at $1.58/lb and $1.46/lb respectively.

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Author

John Heinberg