TFM Morning Update 01-28-2025

CORN

  • Corn futures are trading higher this morning with the March contract taking back half of yesterday’s losses. Yesterday, traders were spooked by the tiff with Colombia and potential new tariffs as well as lower equities in the tech sector that weighed on nearly all commodities.
  • As of January 23, the US inspected 1.247m tons of corn for export which compared to 1.542k the previous week and 926k a year ago. The majority of the corn is headed for Japan followed by Mexico.
  • President Trump is reportedly being pressed to delay a gasoline policy change that is meant to boost ethanol sales due to concerns that the necessary fueling infrastructure would be installed in time.

SOYBEANS

  • Soybean futures are trading higher to start the day, but are still 28 cents off last week’s high as farmer selling and fund profit taking bring prices lower. Both soybean meal and oil are trading higher, but bean oil is posting the larger gains.
  • The Brazilian soybean harvest is reportedly the slowest since the 20/21 harvest. Parana has been leading the country in progress, but Mato Grosso and other states are still delayed although there have been reductions in rainfall.
  • Yesterday’s export inspections report saw soybean inspections at 729k tons which compared to 979k last week and 913k the previous year. The majority of the soybeans are headed to China followed by Turkey.

WHEAT

  • All three wheat classes are trading higher this morning as the grain complex recovers slightly in general from yesterday’s outside market sell-off. Prices remain near contract lows despite some fundamental bullishness.
  • Frigid temperatures over the past week have reportedly killed up to 15% of the winter wheat crop in parts of the US Plains and Midwest according to the Commodity Weather Group. The lack of snow coverage made winter wheat vulnerable to winter kill.
  • Yesterday’s export inspections report saw 485k tons of wheat inspected for export as of January 23 which compared to 262k tons last week and 284k the previous year. The wheat is primarily headed to Japan followed by South Korea.

Author

Amanda Brill

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