Grain Market Commentary 1/27/26
CBOT Pricing:
Corn slipped 0-2 cents lower. The Mar26 contract closed down 1.75 cents at $4.265. The May26 and Jul26 contracts each finished 1.25 cents lower at $4.3425 and $4.4075, respectively.
Soybeans ended the session 3-6 cents higher. The Mar26 contract gained 5.5 cents to close at $10.6725 but remained below the 200-day moving average of $10.68. The May26 contract also gained 5.5 cents, closing at $10.795, while the Jul26 contract finished 5 cents higher at $10.925.
Market Headlines:
President Trump threatening to increase tariffs on South Korea after the country may have not completed their end of the deal:
On Monday, President Trump said South Korea has not fully implemented its trade agreement with the United States. In a social media post, he stated that the Korean legislature has not enacted the agreed-upon provisions. The president indicated the administration may increase tariffs on South Korean imports, including automobiles, lumber, and pharmaceuticals. He said tariffs could rise from the current 15% to 20%, though no timeline has been announced.
China is likely to choose South American soybeans over US supplies in the first half of 2026:
The soybean harvest is beginning in South America, where expectations point to a bumper crop. Increased supply has pressured prices even lower, placing them well below US soybean prices. Private Chinese buyers have been purchasing Brazilian soybeans for shipment from February through the harvest period. Market participants expect Chinese buying to remain focused on Brazil until the US 2026/2027 harvest becomes available.
President Trump has reiterated plans to visit Chinese President Xi Jinping in China this April, with President Xi expected to visit the United States later in the year. The meetings are expected to continue discussions on trade and may include talks related to the 25 MMT US soybean purchase agreement reached in October 2025.
POTUS is in Iowa to speak about energy and the economy:
Today, President Trump is in Clive, Iowa to speak about “affordability” including cost of living issues like taxes, energy costs, and economic policies. He is expected to highlight the administration’s energy policies including biofuel and ethanol. This follows the last-minute push to pass legislation allowing year-round E15 sales, which fell apart last week. Many are hoping, especially Iowa farmers, Trump will address the effect of tariffs, weak crop prices, and rising input costs.
Let’s Talk!
Yield365 – Grain Marketing Simplified
Call: 815.823.2522
Click HERE to learn more
Click HERE to view previous market commentary
Disclaimer: The risk of using futures and options can be substantial and individuals must consider whether they are suitable for their operation. Marketing advice is based on information obtained from third-party sources and is believed to be reliable but not guaranteed by Yield365. Past performance is not necessarily indicative of future results. Marketing advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.