CORN HIGHLIGHTS:

• The corn market saw mixed trade again on Friday as selling pressure at the front end of the market limited gains. Good planting pace, and a strong Brazil corn crop limited the front end of the corn market, despite a still strong demand tone. For the week, July futures finished 16 ¼ cents lower as the corn market saw strong bear spreading.
• The old crop corn demand tone remains supportive despite the weak price action this week. Export sales, export shipments, and ethanol usage are trending ahead of the USDA targets for the marketing year. The USDA may need to make adjustments to the demand on May 12 WASDE report, lowering old crop carryout even further.
• Brazil weather forecast has been favorable for development of the key second crop corn. Analyst estimates for this Brazil crop have been increased, and harvest could limit summer global corn prices in the export market.
• Commodity markets in general were supported by a potential easing of the trade war between the U.S. and China. Reports of both parties may be more open to talks, and China removed the tariffs on $40 billion worth of U.S. imports.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher with strength over the past two days to close out the week. While July beans remain in their trading range, they are at the top, and another 10-cent increase would be a breakout to the upside. There has been some talk of too much rain in some areas, but funds are likely taking profits ahead of the weekend. Soybean meal was higher while soybean oil followed crude lower.
• Today, StoneX raised their estimate for the Brazilian soybean crop for 24/25 to 168.4 mmt from 167.5 mmt in their previous estimates. This would be a record crop at a time where China may be poised to purchase nearly all of their soybeans from Brazil, forgoing the U.S., unless tariffs are lifted.
• China is reportedly evaluating the U.S. in order to negotiate tariffs as long as “Washington does not engage in extortion and coercion”. While both sides clearly want to negotiate a deal, neither country has seemed willing to back down. A deal being made by harvest would be crucial for soybean demand in the U.S.
• For the week, July soybeans lost 1-1/4 cents, recovering much of their losses earlier in the week. November soybeans meanwhile lost 4-1/2 cents. July soybean meal lost $1.60 to $296.90 while July soybean oil lost 0.38 cents to 49.43 cents.

WHEAT HIGHLIGHTS:

• Wheat led the charge higher in the grain complex today, posting double-digit gains across all three classes. Along with a weaker U.S. dollar and higher close for Paris milling wheat, U.S. futures also gathered strength from improving relations between the U.S. and China. These factors, along with a positive technical outlook, may have also paved the way for fund short covering today.
• Reportedly, China may be open to trade talks with the U.S., which could include ag goods. Additionally, China may be in need of purchasing more wheat due to current dryness in some of their key growing regions. There is also talk that their stockpiles may have declined over the past five years to levels below official reports.
• Heavy rains continue to fall across the U.S. southern Plains, which should be beneficial for crop development and relieving drought. But some areas, including central Oklahoma and northern Texas, will see flash flooding. And with more rain in the forecast for this region next week, winter wheat quality concerns may begin to arise as the crop is heading.
• Aside from the dryness in China’s wheat belt, the Black Sea area is also said to be too dry. Furthermore, cold temperatures and frost concerns in northeastern Europe may have given wheat a boost today via additional fund short covering.
• According to the U.S. ag attaché to Canada, their 25/26 wheat production is expected to increase by 2%. This is largely due to a bigger planted area – in March, Stats Canada projected that area would increase by 2.6% versus the year prior.

DAIRY HIGHLIGHTS:

• Second month June Class III futures finished Friday at $17.86, 78 cents higher than last week’s finish.
• Spot cheese gained 5.50 cents on the week to move to $1.7575/lb while whey gained 1.75 cents today to push to 1.50 cents up on the week.
• Class IV futures closed out an uneventful week with small gains in the Q3 2025 contracts today.
• Spot butter closed up a nickel this week at $2.33/lb. Powder was also green with 0.75 cents of gains, hanging just under $1.20/lb.

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Author

Brandon Doherty