Corn prices have remained relatively steady since mid-December, with daily fluctuations of only a few cents. Corn has seen strong demand both in the export market and domestically that has helped to support prices despite replenished stocks from the record harvest. Some fear remains in the market with China rejecting shipments of U.S. distiller’s grain, claiming the shipment contained an unapproved GMO. Soybean prices have not been as strong as corn prices, losing more than 60 cents in the last two weeks. Reports of another record soybean harvest in Brazil combined with expectations of an increase in planted acres this summer here in the U.S. have many traders feeling bearish. One positive note in the soybean market is that demand remains strong. Wheat markets are seeing a similar drop in prices. Nearby Chicago wheat futures have lost 70 cents since the beginning of December. While lower corn prices have reduced demand for wheat used as livestock feed, much of the decline is linked to an expected increase in supplies. Planted wheat acres are expected to hit a six year high when official USDA estimates are released. Record-shattering cold temperatures initially caused some fears of winter-killed wheat in some parts of the country and temporarily brought up prices earlier this week, but snow cover in the hardest hit areas has insulated the crop and damage is now expected to be minimal.
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