US and the World

Winter is still with us but if you look really hard you might see signs of spring. It is the time of year which can be quiet on farms across the greater North American corn belt. However, as the days go by their surely will be more warmth coming over the land with visions of planters heading out into the field. At the same time in South America, harvest and planting are in full swing. That is creating all kinds of variables for market action. Then there is the USDA which chimed in with their latest WASDE report on February the 10th.

As reports go the February report is often quiet because it’s sandwiched between the bigger January reports and the later Prospective Planting report in late March. This USDA report did not veer from that script. In the report US corn ending stocks were reduced 100 million bushels but they’re still the largest in seven years. Also too, world stocks outside of the US and China are still tight and there were no changes to South American corn estimates. Corn exports were increased by 100 million bushels up to 3.3 billion bushels which is a record for corn exports. Corn exports are sitting at 2.127 billion bushels.

On the soybean side of the ledger US balance sheet remain unchanged from January. There was an increase in production in Brazil which had been widely expected. Brazil soybean production is now expected to be 180 MMTs which is up to 2 MMTs from last month. Simply put, it was a quiet report for soybeans. US soybean ending stocks remained at 350 million bushels. World wheat ending stocks or increased 5 million bushels from last month currently sitting at 931 million bushels.

On February 13th corn, soybeans and wheat futures were higher than the last Market Trends report. March 2026 corn futures was at $4.31 a bushel. Dec 2026 corn was at $4.64 bu. The March 2026 soybean futures was at $11.33 bu. The November 2026 soybean futures were at $11.13. The March 2026 wheat futures closed at $5.48 a bushel. The Minneapolis March 2026 wheat futures closed at $5.71 a bushel with the September 2026 contract closing at $6.14 a bushel.
The nearby oil futures as of February 13th closed at $62.89/barrel higher vs the nearby futures recorded in the last Market Trends report of $59.44/barrel. The average price for US ethanol in the US was $2.03/gallon, up vs the $1.97/gallon recorded in the last Market Trends Report.

The Canadian dollar noon rate on February 13th, 2026, was .7345 US, up vs the .7188 US reported here in the last Market Trends report. The Bank of Canada’s lending rate remained at 2.25%.

Ontario

In Ontario it has been an icy cold winter leading up to February the 14th. Parts of Ontario in the snow belt north and West of London as well as toward Barrie have an inundated with snow most of the winter and relief would be welcome. Hopefully this created an environment where winter wheat could survive underneath all the snow. Producers will be looking for some respite as we go into March to facilitate grain movement and production plans for 2026. In the meantime, Agricorp released final figures on last year’s crop putting Ontario corn at 191 bushels per acre and soybeans at 46 bushels per acre.

Ontario basis levels have hardly changed for grains over the last 30 days since the last Market Trends report. In fact, there’s been a slight improvement in some parts of Ontario with eastern Ontario showing historical advantage on the corn basis. Very surely some of this is because of the terrible yields that were experienced in parts of eastern Ontario last year. As we move ahead it’s pretty clear in this part of Ontario and into Quebec that they will need corn to satisfy their needs. The Canadian dollar remains a significant stimulus to cash grain prices.

This has happened even though the Canadian dollar did gain almost $0.02 over the last 30 days. Part of the issue has to do with the American dollar sinking and inversely the Canadian dollar gaining within that paradigm. This will likely continue because the American dollar is seeing pressure it is not seen before partly resulting from some of the political moves being made in the United States. For instance, the American President recently commented that he thought it was a good thing that the US dollar was going down. Foreign exchange markets are more complicated than that but their trade algorithms feed on those comments too. As we move ahead Ontario grain producers should be focused on the value of the Canadian dollar as always but also keep abreast of what’s happening with the US dollar. The two are highly inversely interrelated.

Old crop corn basis levels are $1.35 to $2.15 over the March 2026 corn futures on Feb 13th across the province. New crop corn basis levels were $1.15 to $1.47 over Dec 2026 futures. The old crop basis levels for soybeans range from $3.10 to $3.69 over the March 2026 futures. New crop soybeans range from $2.90 to $3.06 over the November 2026 futures. Ontario SRW wheat prices are approximately $7.02. For July 2026 new crop the bid is in the $6.72 bu. range. On February 13th the US replacement price for corn was $6.28/bushel. You can access all these Ontario grain prices in the marketing section at https://gfo.ca/marketing/daily-commodity-report/

The Bottom Line

We are at somewhat of a standstill in grain prices. Or is this the start of something new even to the point of kidding ourselves for a bit thinking it might be the start of a bull market. All three grains have shown a little bit of resilience in the last 10 days meaning something might be up. That might be China coming in and buying US corn and even more soybeans and it may not be. However, corn prices have recovered from the downdraft from the January USDA report and soybeans have moved much higher.

Geopolitics is always a factor when it comes to grain prices and China is usually part of that equation. In fact, you might say it’s always old news. Last year they didn’t buy American soybeans until there was some type of dialogue with the American President. This year there seems to be more optimism by the Americans that the Chinese might come around. Part of that is based on their better relationship and the specter that President Trump will be visiting China in April. In many ways this is key. You’ve got to believe in the run up to that meeting there will be social media posts from the President about selling more soybeans and corn to China. Our trading algorithms feed on that phenomena. The only way to capture market opportunities from this is to have standing market orders ready.

A weather market it continues to be if you consider South American production. The Mato Grosso Institute of Agricultural Economics recently reported that the Safrinha corn planting had reached 46% by mid-February. This is a touch behind where it usually is. At the same time keep in mind that on the Chinese Dalian corn futures exchange prices have been rising since last October. Corn is not quite like wheat; it is grown mostly in the United States but even still producers should keep an eye on market information about the Safrinha crop. Traders in China are looking at that too.

As we move into March there will certainly be a shift for some producers from old crop to new crop. Keep in mind that every day of the year is an opportunity to buy and sell grain. 2025 did not offer a very long period of profitable grain pricing opportunities. Who knew we would see some of our largest price increases during harvest time? As we move ahead the March Prospective Planting report looms as a major market mover. However, in the relatively bearish environment which we find ourselves in a big change in acres might not be significant to market action until we actually see what gets planted in late June and July.

Commodity Specific Comments

Corn

As we all know demand for US corn continues to be record setting. This is a very good thing considering that we had 17.02 billion bushels last year. Add a certain point there will be a small tussle for acres between corn and soybeans. Will corn acres be about 95 million this year compared to 99 last year? If they are that is reduction of 4 million acres of corn a fairly major move in the market environment we are in now.

We will see if that happens and of course there will be estimates released in late February on the number of acres, but the big prediction will be coming at end of March USDA Prospective Plantings report. Any variation on the script like China buying US corn because there’s has quality concerns will certainly weigh on prices. Simply put, there is so much risk for price as we look ahead toward blowing off the dust on those corn planters.

The March 2026 corn contract is currently priced at 10.5 cents lower than the May 2026 contract a neutral to bearish indication of old crop corn demand. Seasonally, we know that corn prices tend to peak in early June and bottom out in early October. The March 2026 corn futures contract is at the 11th percentile of the past five-year price distribution range.

Soybeans

There is a lot going on in soybeans, possibly increased China buying, a resilient soybean oil market not only with exports abroad but also increased domestic consumption within the United States and possible quality issues in Brazil. For instance, all of these factors are relevant, but the earlier harvested soybeans in the no...