The EUR/USD currency pair declined to 1.0424. The price of US WTI light crude oil rose to 72.25 USD per barrel.

Wheat

Wheat futures declined on Wednesday, with Chicago SRW contracts falling by 11 1/4 cents, closing at $6.06 1/2 per bushel. KC HRW wheat futures were down 13 to 14 cents, while MPLS spring wheat also weakened, losing 7 to 8 cents on the day. A snowfall event across parts of the U.S. central Plains provided some relief for winter wheat crops facing sub-zero temperatures. However, the Texas state crop report showed a 3% decline in good-to-excellent wheat conditions, reinforcing concerns over production prospects.

Corn

Corn futures closed mixed but slightly weaker, with May 2025 corn ending at $5.12 1/4 per bushel, down 3 1/2 cents. The market struggled to maintain levels above the $5.00 mark, weighed down by pressure from ethanol stock buildups and softer margins. Despite this, a Taiwanese importer purchased 65,000 metric tons of U.S. corn, offering some support. The weekly ethanol report is expected to be released Thursday, with traders watching for demand trends that could influence price direction.

Soybeans

Soybean futures closed lower, with May 2025 soybeans finishing at $10.48 1/4 per bushel, down 7 1/4 cents. The cmdtyView national front-month cash bean price dropped 6 1/4 cents to $9.71 3/4. Soymeal futures edged up by 40 cents to $1/ton, while soyoil futures declined 70 to 100 points. The market faced pressure from Brazil’s AgroConsult cutting its soybean crop estimate by 1.1 million metric tons to 172.4 MMT, adding concerns about South American production outlooks.

Key Global Grain Market Developments

The grain market faced multiple headwinds on Wednesday, with key global supply and demand factors influencing price movements.

Trade flow disruptions remain a central concern, with Egypt’s wheat-buying agency securing 2.7 million tons for its subsidized bread program, mostly sourced from Russia. However, the pace of Black Sea wheat exports has slowed, and Russian wheat exports are projected to decline to 45.5 MMT for the season, down from 55.5 MMT previously.

In Brazil, soybean exports for February are now expected at 9.72 million metric tons, down from last week’s forecast of 10.1 MMT, according to Anec. Meanwhile, Brazilian corn exports are forecast at 1.28 MMT, also slightly reduced from prior estimates. The soybean harvest in Paraná has reached 40% completion, with mixed yields reported across different regions.

Argentina's soybean production estimates have been lowered, with Rosario Exchange now forecasting 16.5 million tons, compared to earlier projections of 19.2 million tons. The drought in January significantly impacted yield potential, despite February rains slowing further deterioration. With 55% of Argentina’s soybeans in the grain-filling stage, further recovery prospects remain uncertain.

Extreme weather conditions are affecting North American winter wheat crops. The coldest temperatures of the season are expected to peak between February 19-20, with minimums falling below -23°C (-10°F) in some wheat-growing areas, though snow cover is helping prevent winterkill damage. A warming trend is forecast in the following weeks, with dry conditions persisting in parts of the U.S. Southeast and California.

In the energy market, Brazil's government decided to keep its biodiesel mandate at 14% instead of raising it to 15% as expected. This decision is projected to limit growth in soybean oil demand, potentially impacting soy crushers. Abiove, a major oilseed lobby, is urging the government to reconsider the decision soon.

Palm oil prices in Malaysia surged 3.75% overnight, with Malaysian crude palm oil exports maintaining a 10% duty for March. Meanwhile, Indonesia’s palm oil exports fell 20% month-over-month in January, adding to broader concerns over global vegetable oil supply and trade flows.

On the feed market front, Thailand is in talks to increase U.S. corn and soybean meal imports, aiming to balance its trade surplus with the U.S. as part of ongoing trade negotiations.

The USDA reported that U.S. weekly export inspections for February 13 totaled 1.611 million tons for corn, 720,000 tons for soybeans, and 250,000 tons for wheat. Mexico was the top destination for corn shipments, while China accounted for 210,000 tons of U.S. soybean inspections.

Looking ahead, traders remain focused on U.S. export sales data, South American weather forecasts, and ongoing geopolitical uncertainties that could shape global grain supply and demand in the coming weeks.