Agricultural commodity markets have seen slight declines overnight as traders weigh favorable weather conditions in key growing regions against recent bullish reports from the U.S. Department of Agriculture (USDA). Additionally, export inspections for wheat have decreased significantly, while corn and soybean assessments show positive trends. Meanwhile, light snowfall is expected to affect parts of the Midwest, potentially impacting transportation and farming activities.

Commodity Futures React to Mixed Weather and USDA Reports

The agricultural futures market has experienced modest decreases due to anticipated beneficial weather conditions in major growing areas. Despite this, the USDA's latest report, which lowered production forecasts more than expected, continues to support prices. The agency revised its estimates for corn and soybean yields, reflecting a more cautious outlook compared to previous projections.

In detail, the USDA adjusted its forecast for corn production to 14.867 billion bushels with a yield of 179.3 bushels per acre, marking a decrease from the December estimate of 15.143 billion bushels at 183.1 bushels per acre. Analysts had predicted a slightly higher output. Similarly, soybean production was revised down to 4.366 billion bushels on a yield of 50.7 bushels per acre, lower than the earlier forecast of 4.461 billion bushels at 51.7 bushels per acre. These adjustments led to minor drops in futures prices, with March corn settling at $4.74 1/2 per bushel and soybeans at $10.51 3/4 per bushel. Wheat also saw a slight decline, trading at $5.44 1/4 per bushel for March delivery.

Export Inspections Show Mixed Results Across Crops

Recent data from the USDA reveals fluctuating trends in export inspections for major crops. While wheat inspections have dropped sharply, corn and soybean assessments have shown improvements over the past week. This variability highlights the dynamic nature of global demand and supply chains in the agricultural sector.

Specifically, wheat inspections fell to 288,895 metric tons during the week ending January 9, down from 412,342 tons the previous week but still above the 242,409 tons inspected in the same period last year. In contrast, corn inspections increased to 1.44 million metric tons, up from 877,214 tons a week earlier and surpassing the 956,396 tons examined during the corresponding week last year. Soybean inspections also rose slightly to 1.35 million metric tons from 1.3 million tons the prior week, exceeding the 1.28 million tons assessed at the same point in 2024. Since the start of the marketing year on September 1, USDA has inspected 17.7 million metric tons of corn and 31.3 million metric tons of soybeans for offshore delivery, both figures showing significant year-over-year growth. For wheat, inspections since June 1 total 13 million metric tons, up from 10.4 million tons during the same period last year.