Tuesday February 18, 2025

• The market is ending off the week in the green.
  • Corn continues to trade near recent highs this morning. Old crop corn futures have not been able to push through the $5 mark yet.
  • Wheat prices are leading the way in gains. An extreme cold front is expected to flood the US winter wheat belt next week and the Russian wheat crop has some vulnerabilities as well. 
  • Soybeans are along for the ride with double digit gains. 
• There was a flash sale this morning of 100,000MT of corn for delivery to Colombia in 24/25.
• US corn and wheat export sales were strong last week. Soybean sales were poor, falling below expectations.
  • demand for corn is strong and wheat demand is strengthening. 
• World corn stocks and stocks-to-use are the tightest since 2013. China is projected to have roughly 60% of the world corn stocks in 24/25. This headline was most likely enough to convince index fund buyers to put their money in Corn. The question on everyone’s mind is how long will they hold their long positions.
• Trump is planning to implement reciprocal tariffs to eliminate trade imbalances.
  • The trade seems to be satisfied with this unveiling, supposedly the aim of the plan is to bring countries to the negotiating table