Corn is leading the grain markets higher this morning, with May and July contracts pushing back above the $5.00 mark. Overnight highs were last posted at $5.02½ for May and $5.04¼ for July.
In Brazil, safrinha corn planting is falling behind schedule, with only 1% planted compared to the 10% average. Forecasts call for rain next week, further tightening the planting window. Some Brazilian farmers are considering switching from corn to sorghum as a result.
Meanwhile, a 3% drop in the U.S. dollar—from its mid-January high of 110 to this Monday’s low of 106.775—has likely added support to the market. Since the dollar peaked, the March ’25 contract has gained 15 cents.
Soybean futures are trading higher this morning, up six to nine cents at their respective overnight highs.
Harvest delays in Brazil are firming export prices, with yield expectations mixed. Central Brazil is on track for near-record yields, but southern Brazil’s yields could drop 20% compared to last year.
Export demand has softened, with last week’s Gulf soybean loadings hitting their lowest level since mid-September. The Lunar New Year holiday in China and expectations for cheaper Brazilian supplies in the coming weeks may be contributing to the slowdown.
Wheat futures are building on yesterday’s gains, trading six to eight cents higher overnight, following strong gains of eight to twelve cents in the previous session.
Global crop concerns continue to rise as Western Europe is too wet and the Black Sea and Ukraine too dry. France’s wet weather is hurting crop ratings and dimming production prospects. Russia’s wheat crop could fall below 85 MMT.
Jordan has issued a tender to purchase 120,000 MT of milling wheat from optional origins.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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