1. Grain and Soybean Futures Rise in Overnight Trading

Grain and soybean futures have shown positive movement in overnight trading as more sales of U.S. agricultural supplies to foreign buyers have been announced.

Recent reports from the USDA indicate that South Korea purchased 136,000 metric tons of U.S. corn for delivery in the 2025/2026 marketing year, concluding on August 31.

Additionally, China has secured 334,000 metric tons of soybeans for delivery within the current marketing year. This follows notable sales, including 168,000 metric tons of soybeans to China, and 152,404 tons to Mexico announced on Tuesday. Furthermore, sales included 204,000 tons of corn to South Korea, and another 310,000 tons to an unspecified country announced on Monday.

Supporting corn prices, ethanol production surged to a record high during the week ending January 9, further bolstering market confidence.

Wheat futures also experienced gains owing to dry weather conditions in key regions of Kansas where hard red winter wheat is currently overwintering. The National Weather Service has issued red-flag warnings for northwestern Kansas, along with strong wind advisories for much of the western part of the state.

In the trading markets, corn for March delivery rose by 2¾ cents to settle at $4.24¾ per bushel on the Chicago Board of Trade. Meanwhile, wheat futures advanced by 3½ cents to reach $5.16 per bushel, while Kansas City wheat futures gained 4¼ cents, rising to $5.26½ per bushel. Soybean futures for March delivery increased by 2½ cents to $10.45 per bushel, with soy meal climbing by $2.20 to $294.10 per short ton, although soy oil dropped by 0.27 cents to 50.71 cents per pound.

2. Record High Ethanol Production Reported

According to the Energy Information Administration (EIA), ethanol production surged to a historic high last week, as inventories also saw a significant increase.

During the week ending January 9, production averaged 1.196 million barrels per day, marking an increase from the previous week’s 1.098 million barrels and the highest level documented since recordkeeping began in 2010.

In the Midwest, the main production region, output averaged 1.139 million barrels per day compared to 1.041 million barrels the week prior. Additionally, Gulf Coast production climbed by 1,000 barrels, averaging 27,000 barrels daily. However, production on the East Coast remained steady at 11,000 barrels, and West Coast output was unchanged at 9,000 barrels for the third consecutive week, while the Rocky Mountain region saw a decrease to 10,000 barrels per day.

Inventories of ethanol rose sharply to 24.473 million barrels, up from 23.652 million barrels the previous week, representing the highest stock levels since July 25, as reported by the EIA.

3. Red Flag Warnings Issued in Colorado and Kansas

Red flag warnings, signaling extremely dry conditions, have been issued across northeastern Colorado and northwestern Kansas due to high winds and low humidity levels, as outlined by the National Weather Service (NWS).

Today, winds are projected to be sustained at 20 to 30 mph with gusts reaching up to 40 mph. Tomorrow, wind speeds are anticipated to escalate to 30 to 40 mph, with gusts potentially exceeding 60 mph. Relative humidity is expected to drop as low as 13%.

Residents in these regions are urged to comply with burn bans and avoid any activity that could ignite a wildfire, such as driving over dry grass or brush. Central Nebraska is also expecting winds ranging from 30 to 40 mph with gusts up to 60 mph, with warnings issued that strong winds could cause damage to trees and lead to localized power outages.