By Kirk Maltais
--Wheat for March delivery fell 1.5% to $5.10 1/2 a bushel on the Chicago Board of Trade Tuesday as investors watch for developments out of Davos on the U.S.-EU spat over Greenland.
--Soybeans for March delivery fell 0.5% to $10.53 a bushel.
--Corn for March delivery fell 0.2% to $4.24 a bushel.
HIGHLIGHTS
One Battle After Another: Traders are unsure what a potential tariff war between the U.S. and Europe over Greenland could mean for agricultural futures. Retaliatory tariffs from the EU are expected to include agricultural goods, AgResource said in a note. Money appeared to move out of many commodities and into precious metals, with gold and silver both settling at new record highs today.
Off the Deep End: Russian wheat prices are at the lowest they've been in 18 months, said SovEcon in a note. The firm said that Russian wheat is now trading at an average of 13,050 rubles per metric ton. That's the lowest since July 2024, the firm said, with supplies seen piling up within the country and export demand seen as relatively low. "The current shipment pace is slow," said SovEcon. CBOT wheat futures led the agricultural complex lower in today's session.
INSIGHT
Better Late Than Never: Soybeans didn't fall as much as corn and wheat in reaction to the spat over President Trump's efforts to annex Greenland. That's because the target of 12 million metric tons of soybean exports to China announced last fall appears to have been reached. The target was originally set for the end of 2025, but meeting the target at all is considered a positive. Further upside for soybeans appears limited, said RJO Futures in a note. "Any additional purchases through the 2025/26 U.S. soybean marketing year [is] deemed 'unlikely' by traders," said the firm, with Brazilian production likely to be more sought-after going forward.
Key Indicator: The firestorm around President Trump's campaign to annex Greenland affected commodity futures across the board, but pressure on the U.S. dollar isn't bad news for grains. "The U.S. dollar slipping into almost two-week lows should help competitiveness elsewhere," said Brian Pullam of Linn & Associates. CBOT grains typically rise when the U.S. dollar is weaker, as a lower dollar makes U.S. exports more attractive to buyers.
Back Tracking: Export inspections of U.S. corn and soybean shipments fell from the previous week, the USDA said. Corn export inspections for the week ended Jan. 15 totaled 1.48 million metric tons, which is slightly off from 1.5 million tons at this time last week. Soybean inspections also fell, totaling 1.34 million tons this week versus 1.59 million tons the prior week. China was the leading destination for U.S. soybeans, with 611,983 tons destined for China. Mexico was the top destination for both U.S. corn and wheat.
AHEAD
-The EIA will release its Weekly Petroleum Status Update report at 10:30 a.m. ET Thursday.
-The USDA will release its monthly Livestock Slaughter report at 3 p.m. ET Thursday.
-The USDA will release its weekly export sales report at 8:30 a.m. ET Friday.
-The USDA will release its monthly Cattle on Feed report at 3 p.m. ET Friday.
-The USDA will release its monthly Cold Storage report at 3 p.m. ET Friday.
-The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
01-20-26 1507ET
