Grains and oilseeds are higher on Friday following the overnight session. The U.S. dollar is steady following Thursday’s gains. Crude oil is slightly lower after hitting an eight-month high yesterday. Stock futures are lower.

CORN
Corn futures traded mostly steady on Thursday after losing 0.50 cents to close at $4.36 ¼. Corn has been the lagging market among the grains and oilseeds after failing to climb back into their old trading range last week.

Futures have largely ignored surging crude oil prices, which hit a fresh eight-month high on Thursday. Surging oil prices may help ethanol consumption, though gas prices remain low.

U.S. ethanol production inched higher last week, averaging 1.118 million barrels a day, according to the EIA on Thursday. Production was 3.1 percent higher than the same week last year and a record for the week.

U.S. Census data released on Thursday showed that ethanol exports hit a record 2.18 billion gallons in 2025. That was a record for a second year in a row, increasing 12.6 percent from 2024. Exports have been the primary growth driver for U.S. ethanol production over the past year.

SOYBEANS
May soybeans continued to consolidate at their three-month highs, rising 7 cents to $11.56 on Thursday, bumping up to the upper end of their range.

Technically, soybean futures have been well overbought, but multiple rounds of bullish news have kept the market bulls in the driver’s seat.

Balance sheets for the 2026/27 marketing year released during the USDA’s Ag Outlook Forum showed that the USDA is expecting large volumes of soybean oil used for domestic biofuel production.

Soybean oil used for biofuel is expected to hit a record 17.3 billion pounds, up from the current year’s forecast of 14.8 billion. Significantly larger RVOs from the EPA are expected to continue increasing demand for soybeans and soybean oil.

Soybean oil futures are likely acknowledging the potential demand after surging again on Thursday to fresh highs.

China returning from the Lunar New Year next week could lead to additional soybean purchases after a quiet week.

WHEAT
Chicago wheat futures posted impressive gains on Thursday, with the May contract rallying 14.25 cents higher to $5.66 ¾ a bushel.

Surprisingly, open interest and volume were higher for the session, suggesting actual buying rather than speculative short-covering. Clearing the $5.75 level could open the way for a test of psychological resistance around $6.

Both winter wheat categories were able to clear the 200-day moving average to close out the week.

Drought coverage for winter wheat areas continued to expand over the past week. The U.S. Drought Monitor showed that 45 percent of U.S. winter wheat areas were experiencing drought, compared to 22 percent a year ago.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.