Corn prices remain higher at midday, with some of the strength attributed to delayed soybean harvests in Brazil. These delays are expected to push at least 30% of the safrinha corn planting beyond its optimal window.
Dr. Cordonnier noted that soybean maturity in Mato Grosso is at least two weeks behind schedule, leading to delays in corn planting. This is particularly significant because it could push corn pollination into the dry season.
Corn prices are trending higher, but upcoming tariffs could quickly shift the outlook. President Trump continues to plan a 25% tariff on Mexico and Canada starting February 1st, which could impact the market.
Ethanol average daily production for the week ending January 24th averaged 1.015 million barrels, down 7.6% from the previous week but up 2.4% compared to the same week last year. The decline in production was anticipated due to delays caused by cold weather in some areas.
Soybeans are trading higher at midday, supported by ongoing poor weather in Argentina and a slow harvest in Brazil. Soybeans, soybean meal, and soybean oil are all seeing gains.
The extended forecast for Argentina shows some potential rainfall in the next 10-15 days, but in the meantime, conditions remain less than ideal, with crops under stress.
The U.S. export window to China is closing unless President Trump can convince China to agree to Phase 1 purchase obligations. China is on a holiday through most of next week causing some delays in negotiations.
Wheat prices are higher at midday as supplies from the Black Sea and Ukraine tighten due to dry weather conditions.
The wheat market found some support as the recent cold snap in the central U.S. is believed to have caused some winterkill damage to the winter wheat crop.
Upside potential in the wheat market is likely to be limited by strong export competition and a stronger dollar.
Russia is lacking snow cover due to recent above-average temperatures, and any upcoming cold spells could lead to significant winterkill in the region. The Russian Ag Ministry also reported that 82% of the winter wheat crop is in good condition, but grain exports are expected to decline to 57 mt, down from 72 mt last year.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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