Corn futures are higher at midday after Mexico’s president announced a one-month pause on tariffs following discussions with President Trump. As part of the agreement, Mexico has committed to increasing border security.
Corn export inspections remained strong last week, nearly matching the previous week’s levels. Year-to-date, corn export inspections are running 33% ahead of last year.
Managed money funds hold a significant long position in the corn market, with over 350,000 contracts as of last Tuesday. This large position presents a risk, as any signs of technical weakness could trigger rapid fund liquidation.
Soybean futures are sharply higher at midday, rallying back to overhead resistance at the 200-day moving average.
U.S. soybean export inspections rebounded last week but remain seasonally weak. Year-to-date, soybean export inspections are up 16% compared to last year.
Weather outlooks show a drier stretch over the next seven days, which should improve harvest progress in northern and central Brazil. Meanwhile, portions of Argentina are expected to receive beneficial moisture.
Wheat futures are following other grains higher at midday after the announcement of the tariff pause with Mexico.
The U.S. Dollar Index is higher at midday but well off of its overnight lows. The dollar is working on its fifth day in a row higher.
A lack of snow cover in Russia and the U.S. Southern Plains raises concerns over potential winterkill if future cold snaps occur.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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