Chicago corn futures experienced a dip on Wednesday as traders braced for a U.S. Department of Agriculture (USDA) report, which is expected to show a significant increase in U.S. corn acreage for 2025.
Wheat futures also fell amid ongoing negotiations between Russia and Ukraine concerning the Black Sea, while soybean futures saw an uptick, driven by expectations of reduced acreage for the crop this year.
The most active corn contract (Cv1) on the Chicago Board of Trade (CBOT) was down 3 cents, trading at $4.54-3/4 per bushel as of 12:05 p.m. (1705 GMT), marking its lowest level since March 6. Soybean futures (Sv1) rose by 3-1/4 cents to $10.05 per bushel.
The most active wheat contract (Wv1) was down 4-3/4 cents, settling at $5.38-1/2 per bushel, a low not seen since March 4.
According to a Reuters poll of analysts conducted on Tuesday, the USDA’s upcoming planting intentions report, due March 31, is expected to reveal an estimated 94.361 million acres of corn planted in 2025, a rise from the 90.594 million acres in 2024. Soybean acreage is projected at 83.762 million acres, down from 87.050 million acres last year.
Industry experts, such as Brian Hoops, president of Midwest Market Solutions, suggested that this year’s corn acreage could be one of the largest in history. He added that soybean futures have received support amid concerns that Brazil’s soybean harvest could fall short of expectations, despite being one of the largest on record.
On Monday, Brazilian agricultural consultancy AgRural revised its forecast for the country’s soybean production in the 2024/25 season to 165.9 million metric tons, a decrease of 2.3 million tons from previous projections.
Meanwhile, wheat futures continued to react negatively to ongoing talks between Russia and Ukraine regarding the Black Sea grain deal. According to Randy Place, an analyst at Hightower Report, the tentative agreement aims to secure Black Sea navigation and temporarily halt attacks on sea and energy targets, which has put downward pressure on wheat prices. However, wheat futures found some support after Russia stated that several conditions must be met before a security deal could be implemented.
Place also noted that dry conditions in the U.S. southern Plains have provided some support to Kansas City wheat futures.
