CORN HIGHLIGHTS:

• Corn was disappointing today, following the lower wheat market and reversal in crude oil. The July contract closed nearly 10 cents lower to start the week while September and December futures were down 8 cents and 7 cents respectively.
• Weekly export inspections totaled 66 mb, near the high end of expectations and well above the pace needed to hit USDA’s 2.650 bb target. Year-to-date inspections stand at 2.049 bb, up 29% from last year.
• This afternoon’s Crop Progress report is widely expected to show corn conditions either unchanged from last week at 71% good-to-excellent or a slight increase to 72% good-to-excellent.
• Patria reported that Brazil’s corn harvest is now 5.5% complete, well below last year’s pace of 14% during the same week last year.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher with the deferred months posting the majority of gains following Friday’s trade in which limit up soybean oil bolstered the soy complex and led to expanded limits today. While soybean meal was lower and keeping soybeans from rallying further, soybean oil took advantage of its expanded limits, gapped higher and closed up 4.50 cents in the July contract. The soy complex will have expanded limits again tomorrow.
• NOPA reported a May crush of 192.83 mb, just below the average estimate of 193.52 mb. Still, it marked a record for May and was up from 190.23 mb in April.
• Friday’s Renewable Fuels Association announcement set biomass-based diesel quotas at 3.35 billion gallons for 2025, 5.61 billion for 2026, and 5.86 billion for 2027 — an extremely bullish signal for soybean oil, which has gained 7.50 cents over the past two sessions.
• Friday’s CFTC report saw funds buying 17,038 contracts of soybeans which increased their net long position to 25,639 contracts. They sold 7,222 contracts of bean oil leaving them long 24,768 contracts as of June 10 and bought 9,909 contracts of meal which left them short 86,808 contracts.

WHEAT HIGHLIGHTS:

• Wheat posted modest losses across the board, perhaps following crude oil lower after news outlets reported that Iran is willing to negotiate with Israel to bring an end to the hostilities. Additionally, winter wheat harvest pressure and a largely non-threatening U.S. weather forecast add weight to the shoulders of the market.
• Weekly wheat inspections reached 14.3 mb, bringing total 25/26 inspections to 22 mb, which is down 17% from the year prior. Inspections are running below the USDA’s estimated pace; total 25/26 exports are forecast at 825 mb, up 1% from the year before.
• CFTC data showed managed funds were net buyers of wheat for the fourth straight week, covering 6,500 contracts in Chicago and 3,000 in Kansas City. The total net short across all three wheat classes has narrowed from a record 235,000 contracts to about 183,000.
• Scattered rains fell in Argentina’s central and northern wheat-growing areas over the weekend, aiding early development. Western Europe, the Black Sea region, and parts of China also saw rain, though it may be too late to significantly help crops there.

DAIRY HIGHLIGHTS:

• Class III milk futures start out the week lower on pressure from the spot cheese market. The September contract was the biggest loser, falling 11 cents to close at $19.09.
• Spot cheese fell sharply, dropping 5.1250 cents to close below the $1.80/lb level at $1.7850/lb. Spot whey lost half a cent to go home at $0.5475/lb.
• Class IV milk futures closed higher on the day thanks to the butter market creeping higher. September futures saw the largest gain at 16 cents to close at $19.75.
• Spot butter made another new multi-month high of $2.5925/lb today. Powder was traded slightly higher, improving to $1.27/lb.

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Author

Amanda Brill