CORN
Prices finished $.05-$.06 higher today, however roughly $.05 off session highs in old crop. Today’s surge in speculative buying will not be accounted for in tomorrow’s CFTC data however could very well have formed a near high in prices. In testimony for the Senate Ag. Committee, President Trump’s choice to head the USDA, Brooke Rollins, stated she supported the production of biofuels made from crops. This is in contrast to an organization she led in the past that opposed ethanol mandates and certain farm subsidies. Mch-25 pushed into a new 8 month high. Next major resistance is at $5.08 ¼. Spreads finished slightly firmer. Despite speculative funds reportedly selling 12k contracts yesterday, O.I. jumped another 15k contracts. The BAGE lowered their corn production forecast 1 mmt to 49 mmt, vs. RGE at 48 mmt and USDA 51 mmt. Crop ratings plunged 9% to 30% G/E. Poor/VP surged 14% to 28%. Ethanol production rebounded to 323 mil. gallons LW, up from 322 mil. the previous week and well above the 240 mil. produced last year. Corn usage at 111 mil. bu. was above expectations and well above the pace needed to reach the current USDA corn usage est. at 5.50 bil. bu. Ethanol stocks did jump to a fresh 9 month high at 25.9 mil. barrels. Gasoline usage fell 3% to 8.086 tbd, however was still up 2.6% YOY. Export sales tomorrow are expected to range between 30-65 mil. bu.

SOYBEANS
Prices finished mostly higher while also witnessing volatile 2 sided trade across the complex. Beans were $.06-$.10 higher, meal closed within $1 of unchanged while oil was up 60. 70-80 points higher. Oil spreads firmed, meal spreads weakened while bean spreads were little changed. Spot board crush margins slide $.04 to $1.23 ½ per bu. while bean oil PV rebounded to 41.7%. Near term forecasts in SA are improving with additional chances for rain across Argentina later this week and again early next week. Rains are expected to favor the WC and northern growing areas while much more scattered in the EC and SE regions. Northern and central and growing areas of Brazil will enjoy a bit of a dry stretch before the potential for heavy rainfall returns next week. The wetter than normal pattern has slowed crop development and soybean harvest, while also delaying the 2nd corn plantings. Mch-25 beans seemed to run out of buyers above $10.75 however did carve out a fresh 3 ½ month high. With US FOB prices more than $1.00 above Brazilian beans thru April-25, upside price appreciation would appear limited, unless led by Brazil. Mch-25 meal failed to challenge its January high at $321.60. Mch-25 oil recovered off a test of the $.44 level consolidating near $.45 at midday. The BAGE lowered their soybean production forecast 1 mmt to 49.6 mmt, vs. USDA at 52 mmt. Crop ratings plunged 10% to 22% G/E. Poor/VP jumped another 7% to 28%. Export sales tomorrow are expected to range from 25-65 mil. bu. for beans, 100-400k tons of meal and 10-60k tons of oil.

WHEAT
Prices finished mixed ranging from down $.03-$.05 in Chicago to up $.02 in MGEX. Chicago Mch-25 stalled just below the Dec-24 high at $5.69 ¼. Mch-25 KC rejected trade above its 100 day MA after jumping out to a 2 ½ month high. MGEX Mch-25 traded ¼ cent above its Dec-24 high also before backing off. US precipitation over the next week is expected to favor the Gulf coast and Delta region with little to no moisture across the nation’s midsection. Temperatures are expected to trend back to normal or above normal thru the end of Jan-25. S&P Global raised their all wheat acreage forecast for 2025 1.1 mil. acres to 47.1 mil, with winter wheat acres at 34.115 mil., in line with the USDA Jan-25 forecast. Recently SovEcon held their Russia production est. unchanged at 78.7 mmt however felt that if a significant cold snap occurred, production would be at considerable risk to winterkill given the poor shape the crop was in as it entered dormancy. The number of contracts held by money managers in corn, less the contracts held short across all 3 classes of wheat has grown to a record large level.

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