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1-30 Midday: Grains Weaken at Friday’s Midday

ByGrain Market Insider

Grain Market Insider Interactive Quote Board

  • Corn futures are trading lower at midday as a modest rise in the U.S. dollar adds pressure to the market. March corn futures are down 4.2 cents at 4.26½.
  • Argentina weather concerns have been supportive for the U.S. corn market, as good-to-excellent corn conditions fell another 6% this week to 46%, down sharply from 86% entering January.
  • The Buenos Aires Grain Exchange raised Argentina’s corn planted area to 7.8 million hectares, up from 7.1 million hectares last year, and noted that central and southern areas remain in need of rain.
  • U.S. barge rates remain high and are climbing as ice on the rivers and low water levels increase grain transportation costs.

  • Soybeans are lower at midday as the market continues to pull back, with no fresh news to alter the market outlook. The entire soy complex is trading lower, with March soybeans down 7 cents at 10.65 ¼.
  • Argentine bean conditions declined 6% this week to 47% rated good to excellent and have fallen 18% since the beginning of January.
  • The Buenos Aires Grain Exchange lowered its estimate of Argentina’s soybean planted area to 17.6 million hectares, down from 18.4 million hectares a year ago.
  • It is believed that China has met its 12 mmt commitment, though only 9.65 mmt were confirmed in Thursday’s USDA report. This remains sharply behind 2024/25 purchases at this time last year, which totaled 20.2 mmt.
  • Wheat futures turned lower at midday, pressured by a slightly stronger U.S. dollar. Chicago March wheat is down 4.6 cents at 5.36 ½, while Kansas City March wheat is down 4.2 cents at 5.42 ¾.
  • U.S. winter wheat under drought fell 1% to 41% despite a winter storm impacting large portions of the winter wheat belt. Forecasts call for little to no precipitation over the next week in the Southern Plains, with moderate amounts expected in the southern Midwest and eastern Corn Belt.
  • Cold temperatures are expected to move into Ukraine next week, raising concerns about potential winterkill in the region.
  • Black Sea and Argentine wheat prices remain well below U.S. values, though U.S. quality wheat may be needed for blending with poorer-quality supplies from other regions.

Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.

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