CORN HIGHLIGHTS:

• Short covering and value buying helped lift the corn markets for the second consecutive session as new corn crop prices led the market higher. December corn futures are trading 9 ¾ cents higher going into Friday trade.
• Despite the strong tone of demand in both export sales and ethanol usage, the corn market remained bear-spread with limited gains or extended selling pressure in the July contract. The strong planting pace, prospects of large Brazil corn crop, and crop-friendly weather forecast have seen end users comfortable with front end supplies, limited upside currently on old crop corn prices. July corn futures are 4 ½ cents lower on the week going into Friday trade.
• USDA released corn export sales on Thursday morning. For the week ending May 29, the USDA reported new sales of 942,000 MT (37.1 mb) for 2024-25, and 160,000 MT (6.3 mb) for 2025-26. This was within analysts’ expectations. Mexico was the top buyer of U.S. corn last week. Total export sales commitments for 2024-25 marketing year now total 2.564 bb, up 27% from a year ago, and within 36 mb of the USDA target for the year.
• Commodity markets were supported by comments by President Trump regarding his phone conversation with President Xi of China. The possibility of more dialogue eased some of the trade tensions fears that may have limited the corn market over recent sessions.
• Weather forecast into the middle of June remains supportive for good crop growth, and a limiting gain in the corn market. Longer range models reflect a drier and warm pattern going into the end of the month, but long-range forecast lack reliability and can change daily.

SOYBEAN HIGHLIGHTS:

• Soybeans closed higher today following positive trade talks between President Trump and China’s Xi, which will hopefully lead to further negotiations. Today’s export sales report fell within trade expectations but were not very strong. Soybean meal was slightly higher, while bean oil was mixed in bear spreading action.
• Today’s export sales report saw an increase of 7.1 million bushels of soybean sales for 24/25 and 0.1 mb for 25/26. This was up 33% from last week but down 30% from the prior 4-week average. Top buyers were Bangladesh, Norway, and Taiwan. Last week’s export shipments of 11.3 mb were below the 13.4 mb needed each week to meet USDA estimates.
• Today, Presidents Trump and Xi spoke on the phone and, according to Trum,p had a very good conversation regarding the countries’ trade truce. More meetings are expected to follow and will ideally end with a trade agreement.
• The soybean meal market could provide some support for soybean futures in the near future. Managed hedge funds are holding a near-record short position in the soybean meal market, but demand for U.S. soybean meal has been improving. Soybean meal exports for the current marketing year are at a record pace and up 5% over last year. With the prospects of tighter acres for next crop year, soybean meal could see buying strength from value buyers at these price levels.

WHEAT HIGHLIGHTS:

• With the exception of Minneapolis futures, wheat closed marginally higher today. Ongoing concerns about global production, along with anticipation of better U.S. and world trade relations helped keep the wheat settlements mostly positive. However, U.S. winter wheat harvest pressure may somewhat limit upside potential for now.
• Grain markets may have received a boost today in part due to the phone call between President Trump and Chinese President Xi. It appears to have been constructive; news outlets report that Trump stated it was a “very good phone call” and this may have given traders some optimism that a trade deal is near.
• The USDA reported a decrease of 1.8 mb of wheat export sales for 24/25, but an increase of 16.3 mb for 25/26. Shipments last week reached 19.8 mb, which is well below the 50.5 mb pace needed per week to reach the USDA’s 820 mb export goal for 24/25. Total 24/25 shipments at 768 mb are up 13% from last year.
• Recent rains have improved the drought situation for both winter and spring wheat areas. According to the USDA, as of June 3, an estimated 12% of winter wheat acres are experiencing drought conditions – this is down 4% from last week. Meanwhile, spring wheat areas in drought dropped from 29% to 19% during the same time period.
• LSEG sees Chinese wheat production at 141.7 mmt in their latest estimate. This would be down 1% from the last update and the decrease is due to the impact of ongoing drought. Other private estimates range as low as 133-135 mmt. For reference, last year China’s wheat crop was a record 140 mmt.

DAIRY HIGHLIGHTS:

• July Class III futures were down another 25 cents today to move to $18.64. Losses held into the 2026 contracts.
• Spot cheese was unchanged with blocks 1.75 cents lower and barrels up the same amount. Spot whey gained a half cent.
• The only Class IV mover today was April 2026, which fell 2 cents. The Q4 months saw some volume but no movement.
• Spot butter fell 0.25 cents on another 24 loads traded, entering Friday up 8.25 cents on the week. Powder fell a penny.
• April cheese production was up 3.1% YoY while butter was up 3.9% from April 2024.

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Author

Amanda Brill