Grain markets finished the week on a firmer footing, with wheat, corn, and soybeans all closing higher on Friday. The move reflected a combination of pre-holiday risk management, technical recovery after early-week losses, and confirmation that underlying demand remains active even as supply remains ample across major origins.

Wheat led the rebound into the close, posting gains across all three U.S. exchanges. Chicago SRW, Kansas City HRW, and Minneapolis spring wheat all advanced on Friday, supported by fresh export activity and light short-covering. Despite the day’s gains, weekly performance remained mixed, underscoring that the rally was corrective rather than a decisive trend shift.

Positioning data highlighted the role of funds in Friday’s wheat strength. CFTC Commitment of Traders figures showed managed money trimming a small portion of its net short in Chicago wheat, while speculators also reduced shorts in Kansas City contracts. Even after the reduction, speculative positioning remains heavily net short, leaving wheat sensitive to further short-covering on any positive demand or weather developments.

Export fundamentals for wheat continue to improve on a cumulative basis. Total U.S. wheat commitments reached 20.392 MMT as of January 8, running 15% ahead of last year and already at 83% of USDA’s full-year projection. Shipments are also tracking ahead of the seasonal average, lending medium-term support despite week-to-week sales volatility.

Corn futures also finished higher on Friday, clawing back part of the sharp losses seen earlier in the week. While March corn remained significantly lower on a weekly basis, the day’s gains were supported by strong export commitments and fresh flash sales reported by USDA. Cash corn prices strengthened as well, reflecting firm interior demand and export pull.

CFTC data showed aggressive fund selling earlier in the week continues to weigh on corn’s broader outlook. Managed money expanded its net short position to the largest level since October, driven by new short positions and shrinking long exposure. This positioning limits upside momentum but also leaves the market vulnerable to sharp rebounds if demand or weather risks intensify.

Export demand remains a key counterweight for corn. USDA reported additional private export sales on Friday, lifting total weekly flash sales to 1.83 MMT. Overall corn commitments are now 29% above last year and ahead of the average sales pace, while shipments are also running well above normal seasonal levels.

Soybeans closed the week with modest gains on Friday, stabilizing after a volatile stretch driven by shifting fund positions and South American crop headlines. Soymeal rebounded on the day despite a steep weekly decline, while soyoil eased slightly after a strong weekly advance. The mixed product performance reflected ongoing uncertainty around biofuel policy and near-term demand.

Speculative positioning remains a notable headwind for soybeans. CFTC data showed funds cutting their net long sharply again, leaving length at relatively low levels. Export commitments, however, continue to provide some support, even as cumulative soybean shipments lag well behind historical averages.

South American supply remains a moderating influence. Brazilian soybean production estimates continue to edge higher among private analysts, reinforcing expectations for large global supplies later in the season. These projections limited the extent of Friday’s soybean gains despite improved price action.

Wheat: Mar ’26 CBOT wheat closed at $5.18, up 7 1/2 cents. The rally reflected short-covering, improved cumulative export commitments, and pre-holiday positioning, though heavy speculative shorts remain a longer-term cap on sustained upside.

Corn: Mar ’26 CBOT corn settled at $4.24 3/4, up 4 1/2 cents. Strong export commitments and fresh flash sales supported prices into the close, even as large fund net shorts and ample global supply kept the weekly trend under pressure.

Soybeans: Mar ’26 CBOT soybeans finished at $10.57 3/4, up 4 3/4 cents. Modest gains reflected stabilization after heavy fund liquidation, with export demand and soymeal recovery offset by rising South American production estimates and soft cumulative shipment data.