By Kirk Maltais
--Corn for March delivery fell 1% to $4.30 3/4 a bushel on the Chicago Board of Trade Friday.
--Wheat for March delivery fell 0.8% to $5.30 3/4 a bushel.
--Soybeans for March delivery rose 0.2% to $11.14 3/4 a bushel.
HIGHLIGHTS
Souring Speculation: CBOT grain futures turned lower, with corn and wheat falling, while soybeans stayed just above water. After a sell-off in precious metals, some spectators saw low-priced grains as an attractive place to park their money. But weak supply-demand fundamentals for grains may limit how much investors benefit from these trades. "Global grain infrastructures have improved very much, so competition is fierce," said Virginia McGathey of McGathey Commodities. "Uncertainty is seeping in everywhere and that keeps traders from building up short positions."
Demand Murmurs: Rumors of China buying some cargoes of U.S. soybeans supported prices, while corn and wheat sank. But traders will need to see real evidence of China following through on buying more. "From a purely economic perspective, supplies from Brazil -- the world's top producer and exporter -- remain significantly cheaper during the country's peak export season, potentially limiting the scope for sustained Chinese demand for U.S.-origin beans," said Ole Hansen of Saxo Bank in a note.
INSIGHT
Capping Off the Week: The dollar pared some of its recent gains, but finished the week on the positive side for the first time in two weeks. The recovery can be credited to the nomination of Kevin Warsh as the next Federal Reserve chair, a series of upside surprises in manufacturing and services PMIs, and cautious rhetoric from some Fed officials, Naga's Frank Walbaum writes. He notes, however, that the currency remains near multi-year lows and could weaken as U.S. politics and the Federal Reserve's independence and monetary policy remain under scrutiny. The WSJ Dollar Index fell 0.2%.
Empty Pockets: Income woes for U.S. crop farmers are expected to continue in 2026, with net income expected to slide to $153.4 billion, down 0.7% from the prior year, according to the USDA. Much of this income is expected to again be direct government payments, with those projected at $44.3 billion, up $13.8 billion, or 45% from the prior year. "This overall increase reflects higher anticipated payments from Farm Bill programs that trigger payments when commodity prices fall," said the USDA. The agency did forecast slightly higher cash crop receipts, but that isn't expected to provide cash-strapped farmers solace.
AHEAD
-The USDA will release its weekly Grain Export Inspections report at 11 a.m. ET Monday.
-The EIA will release its Weekly Petroleum Status Update report at 10:30 a.m. ET Wednesday.
-Pilgrim's Pride Corp. will release its fourth quarter 2025 earnings report after the stock market closes on Wednesday.
Paulo Trevisani contributed to this article.
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
02-06-26 1538ET
