Corn Falls Amid Fed Rate Hike Expectations, Soybeans Retreat

Corn futures are lower as technical pressure and traders pause ahead of the Federal Reserve's interest rate decision today. The Federal Reserve is expected to raise the target range for the federal funds rate by 25 basis points to 3.75%-4.00%, marking the first rate hike since 2023, due to inflation remaining above target and energy shocks stemming from the war with Iran.

The wetter weather in the northern Corn Belt and additional moisture in the west-central production areas will help fix long-term moisture deficits, but delay crop maturation and harvest progress, notes World Weather Inc. Winter wheat futures are also modestly weaker amid technical pressure, despite Ukrainian farmers starting winter wheat sowing for the 2027 harvest.

Soybeans have backed off overnight highs as resistance stands at last week's high, while prospects for an extension to the U.S.-China trade truce solidify as the two sides discuss slashing tariffs on goods including American energy and agricultural products ahead of the leaders' summit next week. November soybean futures face support at $13.35 1/4 and $12.85 1/2, backed by the 20-day moving average.