By Paulo Trevisani


--Corn for March delivery fell 0.7%, to $4.37 1/2 a bushel, on the Chicago Board of Trade on Friday, as a new trading year started with the prospect of excessive global supply.

--Soybeans for March delivery fell 0.1%, to $10.45 3/4 a bushel.

--Wheat for March delivery fell 0.1%, to $5.06 1/2 a bushel.


HIGHLIGHTS


Losing Start: Grain futures weakened in the first trading day of 2026, amid concerns of abundant supply. The USDA reported flash export sales of 132,000 metric tons of corn for delivery to South Korea during the current marketing year. RCM's Doug Berman wrote that low corn prices are likely to slow selling interest "and some buying interest is expected to emerge" ahead of the Jan. 12 WASDE report.

Bountiful Harvest: Soybean futures remained under pressure as weather forecasts support a bountiful South American harvest. AgResource expects Brazil to produce more than 180 million metric tons of beans this year, noting in a report that weather conditions over the next three to four weeks will help determine the crop's size. "A record large South American corn and soybean crop is in the making," AgResource said. It added that Chinese purchase of U.S. soybeans remained uncertain. "Unfortunately, it will require a supply shock through weather to sustain a bullish price trend."


INSIGHT


Tariff Certainty?: Reduced tariff volatility could benefit commodities this year, following a rough 2025 for grains, StoneX's Arlan Suderman wrote. "Tariff volatility should be behind us, although the Supreme Court could still impact that with its decision on President Trump's use of the emergency powers act to implement some of those tariffs." Suderman expects Trump to ease back on tariff threats as he tries to restore more certainty to the economy ahead of the midterm elections.

Abundant Grains: The prospect of abundant supply weighed on grain futures in 2026's first trading session. AgResource pointed out in a report that world wheat exporters produced an additional 1.1 billion bushels in the 2025-26 season, while Brazil is set to harvest a record soybeans crop and the U.S. and Argentina are producing record large corn crops. "India will be hoping that mild temperatures produce a wheat harvest in excess of 120 [million metric tons] while needed rain is forecast across Argentina," AgResource added.


AHEAD


--The USDA will release its weekly Grain Export Inspections report at 11 a.m. ET Monday.

--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Monday.

--Cal-Maine Foods will release its second quarter earnings report at 6 a.m. ET Wednesday.

--The EIA will release its Weekly Petroleum Status Update report at 10:30 a.m. ET Wednesday.

--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.

--The USDA will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.


Write to Paulo Trevisani at paulo.trevisani@wsj.com


(END) Dow Jones Newswires

01-02-26 1441ET