CORN

• Corn prices continue to trade lower at midday, as the U.S. dollar rallies sharply following reports that the Trump Administration may issue a national emergency declaration to justify universal tariffs.
• Increasing temperatures and dry weather are forecast for Argentina and Paraguay in the coming weeks. As conditions worsen, the corn crop is at risk of significant stress over the next couple of weeks.
• Ukraine implemented a new minimum price export system for corn, which significantly slowed exports in December. Ukraine’s December corn exports totaled 2.498 mt down 3.118 from last year. This slowdown has proven beneficial for U.S. corn exports.

SOYBEANS

• Soybeans trade lower at midday, due to the strong rally of the U.S. dollar. Both soybeans and soybean meal are trading lower, while soybean oil is trading higher.
• Weather conditions in Argentina remain concerning, with increasing temperatures and dry conditions expected over the next couple of weeks, potentially stressing some of the late-planted soybeans.
• USDA confirms the sale of 120,000 tons of U.S. soybeans to be delivered to an unknown destination.
• Analysts expect the USDA to slightly reduce its 2024 soybean production estimate by approximately 8 mb. Even with this reduction, the 2024 crop would still be 7% above 2023 production and remain the second-largest U.S. harvest on record.

WHEAT

• All three wheat classes are trading lower at midday, as the surge in the U.S. dollar continues to put pressure on wheat prices.
• Persistent signs of deterioration in the winter wheat crop across the U.S. Plains could offer some support to wheat markets, as crop ratings decline in these states due to dry conditions and an ongoing cold snap.
• Wheat exports from Russia and the EU are expected to be lower than last year, but with reduced wheat demand and increased exports from Australia and Argentina, this could compensate for the lower production and exports from Russia and the EU.

Author

Lauren VandenLangenberg