Grains and oilseeds are higher on Wednesday following the overnight session. The U.S. dollar recovered from recent lows. Crude oil continued to push higher. Stock futures are higher, with the S&P 500 trading at a record.
CORN
March corn traded another 1.75 cents lower on Tuesday to close at $4.26 ½. Prices pushed back toward last week’s highs, attempting to negate losses from the past two sessions.
Perhaps helping the market this morning was President Trump’s comments last night in support of year-round E15. The administration said it would allow “up to 2 billion more bushels of corn to be consumed domestically” if implemented.
E15 is currently limited to the summer months, however exemptions have become more common in recent years that could limit the impact if passed by Congress.
The weaker U.S. dollar could finally be having a positive impact on the grain markets after falling to the lowest in more than a year.
SOYBEANS
Soybeans were the most positive yesterday, with the March contract rising 5.50 cents to close at $10.67 ½. Soybean oil led those gains, as prices continued to develop a firmer tone.
Soybean futures climbed another 11 cents higher overnight and poked above the 100-day moving average for the first time since mid-December.
The market may be cautiously optimistic that the Trump administration will release favorable biofuel policy over the next few weeks or months. However, prices may need to climb above $10.72 to avoid more range-bound trade.
The ongoing Brazilian soybean harvest, which is expected to be a record, could continue to limit gains in the soybean complex.
WHEAT
Wheat futures were steady on Tuesday, with the March Chicago contract rising 0.75 cents to $5.23 ¼. Prices rose back to Monday’s highs just below the 100-day moving average.
Again, a move above the level could help trigger additional short-covering, through gains could be limited by bearish fundamentals. The wheat market has been working to hold their established lows, which is more defined in the HRW wheat contracts.
Russian-based consultancy firm SovEcon raised its 2025/26 wheat export forecast to 45.7 MMT, up 1.1 million due to a strong shipment pace and higher crop production estimates. December wheat shipments were the highest for the month in eight years.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.