Current Trends in the Grain Market

1. Grains and Soybeans Experience Modest Gains

Grain and soybean futures showed slight increases during overnight trading, supported by light trading volumes as the Christmas holiday approaches. The market’s optimism was largely driven by demand for U.S. agricultural products.

Corn prices were bolstered by a notable rise in export inspections, which increased by 0.8% week-over-week and 5.2% year-over-year. According to USDA data, corn exports have reached 22.9 million metric tons, marking a significant 68% increase compared to last year.

Soybean futures also climbed slightly, buoyed by renewed interest from China, which purchased 396,000 metric tons, with 330,000 metric tons scheduled for delivery in the 2025/2026 marketing year.

Wheat futures have been influenced by ongoing geopolitical tensions, particularly the conflict between Russia and Ukraine. Recent reports indicate an uptick in drone attacks and military actions from Russia, affecting market stability.

Specific futures prices included:

• Corn (March delivery): Up 1¾¢ to $4.48¾ a bushel
• Wheat (March delivery): Up ½¢ to $5.16 a bushel
• Soybeans (January delivery): Up 1¾¢ to $10.66¾ a bushel

2. USDA Reports Increased Export Inspections

The USDA’s latest report shows an increase in export inspections across the board for corn, soybeans, and wheat as of December 18. Corn inspections rose to 1.74 million metric tons, reflecting greater demand than the previous week.

Specifically:

• Soybean inspections totaled 870,199 metric tons, an increase from last week but still below the totals from the previous year.
• Wheat inspections jumped to 627,443 metric tons, up from the week prior and last year.

3. Weather Conditions Impacting Crop Yields

As we approach the holiday season, weather forecasts indicate minimal snow across the U.S., which may disappoint some hoping for a traditional white Christmas. However, northern regions, particularly Minnesota and Wisconsin, could see some snowfall later this week.

In contrast, central Nebraska is experiencing record warmth, with forecasts predicting strong gusts on Christmas Day. These conditions are expected to stabilize with a slight temperature drop over the weekend.

The National Weather Service (NWS) has warned of a 20-50% chance of a winter storm impacting travel in the northern states later in the week.