CORN HIGHLIGHTS:

• The corn market ended the week with a quiet session and mixed trade. Strong export sales and demand supported the front end of the market, helping the March contract close 7-3/4 cents higher for the week, marking the fourth consecutive week of gains.
• On Friday, the March contract traded within a very tight range of 2-3/4 cents, from high to low. Prices are now testing strong overhead resistance, with the narrow range potentially signaling a slowdown in upward momentum.
• Weekly corn export sales were supportive as U.S. exporters reported new sales of 1.711 MMT (67.4 mb), just slightly above expectations. Total sales are still trending 29% higher than last year and ahead of the pace needed to reach USDA export targets. Mexico was the largest buyer of corn for the week.
• While futures prices have rallied, in some regions of the corn belt, the cash market has absorbed the gains as basis levels have widened to balance the market as producers have been active in selling bushels.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower, giving back a portion of yesterday’s gains and were mainly driven lower due to a disappointing export sales report. While soybean meal was the leader yesterday, it ended lower today while soybean oil was slightly higher.
• Today’s export sales report saw an increase of 35.9 million bushels of soybean export sales for 24/25 and an increase of 4.6 mb for 25/26. This was a marketing year low and was down 31% from the previous week and 47% from the prior 4-week average. Export shipments of 57.8 mb were above the 24.7 mb needed each week to meet the USDA’s export estimates, and primary destinations were to China, Spain, and Egypt.
• CONAB has said that Brazil’s soybean exports are likely to reach 105.5 mmt in the 24/25 season which would be an improvement from the previous season where export totaled 96.8 mmt as a result of lower production.
• January soybean options expired at the end of the session on Friday. The market pinned open 980 calls and puts on the closed as prices seemed to move to cover the open interest at that strike level. The open on Sunday night could bring some volatility as the market handles those possibly exercised options.

WHEAT HIGHLIGHTS:

• Wheat futures closed higher across all classes, supported by a weaker U.S. Dollar Index, stronger Matif wheat futures, and bullish technical indicators.
• The USDA reported an increase of 22.5 mb of wheat export sales for 24/25 as well as an increase of 0.5 mb for 25/26. Shipments last week at 13.8 mb fell below the 18.0 mb pace needed per week to reach their export goal of 850 mb. Sales commitments have reached 616 mb, which is up 11% from last year.
• China has reportedly increased financial support for farmers, with lower interest rates and expanding loan ability. Additionally, their government is said to have promised more support for ag research projects. All of this is aimed at national food security and less reliance on grain imports.
• Turkey’s 2024 wheat output fell 5.5% to 20.8 mmt, likely increasing import needs. Reduced Russian production may open opportunities for U.S. exports.
• According to the Buenos Aires Grain Exchange, Argentina’s wheat crop is 64% harvested. Furthermore, the crop remains in very good condition overall; 86% of the crop is rated normal to excellent, compared with 58% a year ago.

DAIRY HIGHLIGHTS:

• Class III futures saw big gains on the day led by January and February contracts which were 50 and 59 cents higher respectively.
• Spot cheese improved 2 cents to $1.82/lb while whey increased a penny to $0.75/lb.
• Class IV futures were quiet again Friday with no trading volume. First quarter contracts remain at $21.00 or just above.
• Spot butter was unchanged at $2.5750/lb while powder gained half a cent to $1.3875/lb.

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Author

Amanda Brill