CORN HIGHLIGHTS:

• The corn market saw a fourth day of selling pressure as concerns regarding tariffs and fund liquidation pressured the corn market. The weakness today erased all gains in the corn market for 2025 as the May contract closed at its lowest point since December 26.
• Managed funds have been aggressively selling their net long positions. Friday’s Commitment of Traders report showed a reduction of 16,000 net long contracts as of February 25, and estimates suggest an additional 60,000-70,000 contracts have been liquidated since then. The selloff extends beyond grains, affecting the broader agricultural commodity market as funds react to trade uncertainties.
• The proposed 25% tariffs on Mexican and Canadian imports remain scheduled to take effect on March 4. Negotiations between the three countries continue, with the possibility of a resolution. Mexico, the largest buyer of U.S. corn, could retaliate with tariffs or reduce purchases, adding uncertainty to the market.
• USDA announced a flash export sale of corn this morning. Mexico purchased 114,000MT (4.5 mb) of corn for the current marketing year. This was the first published corn sale since February 14.
• USDA released weekly export inspections on Monday afternoon. For the week ending February 27, US exporters shipped 1.351 MMT (52.6 mb) of corn. This total was near the top end of market expectations. Mexico was the top importer of U.S. corn during the week. Total shipments have a total of 1.073 bb, up 32% from last year and ahead of the pace to reach the USDA marketing year targets.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower for the fourth consecutive day in risk-off trade today that saw May futures break significantly below the 100-day moving average. Pressure has come from uncertainty over looming Chinese tariffs and potential retaliation on U.S. agricultural goods. Both soybean meal and oil ended the day lower, but soybean oil posted the larger losses.
• President Trump was expected to place 25% tariffs on both Canada and Mexico tomorrow, but he just posted that the tariffs would go into effect on April 2 amid likely ongoing negotiations with the two countries. China, however, is not expected to negotiate and there have been talks that China would place retaliatory tariffs on U.S. agricultural goods if Trump doubled the Chinese tariffs to 20%.
• The USDA released the January soybean crush numbers today, which came out to 211.1 million bushels. This was right in line with the average trade estimates but has slowed from December by 3% when crush came in at 217.7 mb.
• Today’s Export Inspections report saw soybean inspections totaling 25.5 million bushels for the week ending February 27. This was within trade expectations but was below last week’s inspections. Total inspections for 24/25 are now at 1.381 bb, up 10% from the previous year.
• Friday’s CFTC report saw funds as sellers of soybeans by 8,317 contracts lowering their net long position to 8,209 contracts. They were sellers of both soybean meal and oil by 10,420 and 6,200 contracts respectively.

WHEAT HIGHLIGHTS:

• Despite a sharp drop in the U.S. dollar, wheat futures continued to struggle, closing lower alongside most agricultural commodities. A lack of supportive news and a lower close for Matif wheat added pressure. The primary market concern remains the potential for U.S. tariffs on Mexico and Canada set to take effect tomorrow. Additionally, proposed tariff increases on China have raised fears of retaliatory measures, including reduced U.S. agricultural imports.
• Weekly wheat inspections of 14.3 mb bring the total 24/25 inspections figure to 574 mb, which is up 20% from last year. This is in line with the USDA’s estimated pace; wheat exports for 24/25 are estimated at 850 mb, also up 20% from the year prior.
• According to India’s meteorological department, much of their nation is expected to see heat waves through May 31. Additionally, it was reported that the month of February was their second warmest since 1901. The threat of above normal temperatures could ultimately reduce their wheat yields.
• Friday afternoon’s CFTC data indicated that managed funds increased their net short position in Chicago wheat by 10% to 67.6K contracts as of February 25. With the continued downtrend in the market, it is likely that the short position has grown further over the past few sessions.

DAIRY HIGHLIGHTS:

• Class III futures start the week lower on lower spot trade for cheese. March futures closed 15 cents lower to $18.54 while the April contract lost 18 cents to $18.09.
• Spot cheese has lost nearly 10 cents in the last 6 trading days closing today at $1.75125/lb. Whey held steady at $0.51/lb, but continues to be in a downtrend.
• Class IV futures were steady to slightly lower on an uneventful spot session for Class IV products. March futures were unchanged at $18.94.
• Spot butter was unchanged at $2.3450/lb on Monday while powder lost 0.75 cents to close at $1.1925/lb.

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Author

Amanda Brill