Wednesday January 22, 2025

  • Corn, soybeans, and wheat are all trading slightly in the green to start the day.
    • The corn market continues to adjust for a “tighter than expected” old crop. Spot futures have gain $1.30/bu from their August lows. 
  • The Chinese government announced that the country will increase the “scale of corn purchases and storage” and will also “seize the right timing, pace, and scale for grain imports” There has been rumors circulating that some of these purchases could come from the US. 
  • There are rumors that China has stopped soybean imports from five Brazilian trading firms, failing phytosanitary requirements. 
  • S&P Global estimated 2025 U.S corn planting at 93.5million acres, up 700k from their previous Dec estimates and Soybean acres came in at 83.3 million, down 700k from last month. 
  • Export inspections
    • Corn saw a marketing year high at 60.7mbu and above expectations. This leaves corn 6% above the needed pace to meet the USDA’s expectations. 
    • Soybeans were below expectations at 35.8mbu, nearly half of the 10 week average, beans are still 5% ahead of the needed pace.
    • Wheat was slightly below expectations at 9.6mbu. 
  • Wheat Technicals
    • The March wheat contracts gapped higher to open yesterday, climbing above the 50 day moving average for the first time since October. The move was supported by wheat futures following corn and soybeans higher, a weaker dollar and no immediate tariffs. Other things going on are inadequate snow cover that may lead to winter kill in 2/3 of the plains, we will not know the damage until spring, managed money is still short wheat, and Trump’s quest for peace in the Black Sea.