CORN HIGHLIGHTS:

• Buying strength stepped into the corn market supported by strength in the wheat market, and strong export sales on Thursday morning. March corn closed at its highest level in the past seven sessions.
• March corn futures posted a bullish reversal today, trading above and below Wednesday’s range before closing near the session’s high. This may trigger additional technical buying overnight.
• The USDA released weekly export sales on Thursday morning. Sales remained strong as new sales totaled 68.2 mb, which was above trade expectations. Mexico continues to be the largest buyer of U.S. corn. Total corn sales are up 33% YOY as the overall sales pace remains strong.
• Tuesday’s December WASDE report may reveal stronger corn demand for exports and ethanol, likely reducing carryout for the sixth consecutive month.

SOYBEAN HIGHLIGHTS:

• Soybeans recovered all of yesterday’s losses, closing near the high end of their range. Export sales were strong, and the dollar dipped lower today, both things being supportive of soybeans. Soybean meal finished the day just slightly lower while soybean oil traded higher and led soybeans.
• USDA reported soybean sales at the high end of expectations — 85.0 mb for 24/25 and 200 metric tons for 25/26. Last week’s shipments of 89.2 mb far exceeded the 28.5 mb needed weekly to meet USDA projections, with top buyers including China, unknown destinations, and Spain.
• The incoming administration’s potential policies on biofuel use in the US may be preventing soybean oil from rallying to the same degree as palm oil. It is unlikely that this will have any long-term effect on demand, as global biofuel use has trended significantly higher over recent years.
• Significant rains continue to benefit Brazil’s soybean crop, though excessive moisture could pose risks later. Production estimates remain on the rise.

WHEAT HIGHLIGHTS:

• Wheat had a good day, with double-digit gains in both Chicago and Kansas City, with Minneapolis not far behind. Wheat was aided by a sharply lower US Dollar Index and spillover support from corn and soybean futures.
• USDA reported 13.9 mb of wheat sales for 24/25 last week. While weekly shipments of 11.8 mb were behind the 16.5 mb needed to meet the 825 mb goal, commitments are up 19% year-over-year at 571 mb.
• Drought currently affects 29% of U.S. winter wheat acres, up 1% from last week but sharply improved from 62% in late October. Favorable conditions may cap price gains.
• Statistics Canada raised its wheat production estimate to 34.96 mmt, slightly above the 34.3 mmt trade guess and aligning with USDA’s 35 mmt forecast. Spring wheat accounts for 26 mmt of the total.

DAIRY HIGHLIGHTS:

• December and January Class III futures were lower today while most 2025 contracts closed green. Second month January sits at $19.05.
• Spot cheese fell 3 cents today to move to $1.65375/lb, dropping after closing up the previous two days. Spot whey was unchanged.
• Class IV futures were mixed but the second month January contract was 7 cents higher to $20.77.
• Spot powder was up 1.25 cents to move back under $1.40/lb. Spot butter was unchanged.
• Dairy exports in October were down 2% from October 2023 and down 4% from the previous month.

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Author

Amanda Brill