CORN HIGHLIGHTS:

• Buyers returned to the corn market to end the week. Additional short covering and technical buying was noticed in the grain markets as the prospect of a hotter weather forecast triggered some premium in the corn market. For the week, December corn futures gained 15 ½ cents.
• The 7-day outlook for the Corn Belt remains warm and wet. Forecast maps show much of the region could receive up to 140% of normal rainfall, which may prove critical if drier weather materializes as projected heading into August.
• Technical buying added support as corn futures pushed through key moving averages. However, the $4.30 level held as resistance, marking a critical threshold for the market heading into next week.
• Brazil’s corn harvest is accelerating amid drier weather, boosting availability. With Brazilian farmers managing record-large soybean and corn crops, the increase in global supplies may limit upside potential for U.S. corn prices.
• Argentina is in the final stages of this year’s corn harvest. As of Wednesday, corn harvest was 73% complete, down from last year’s 80% level due to wet weather. The Argentina corn crop is projected near 49 MMT.

SOYBEAN HIGHLIGHTS:

• Soybeans ended higher as forecasts turned hotter and drier for the 6- to 10-day period. A weaker U.S. dollar added support across the grain complex, but weather will remain the key driver if the pattern persists into August. Soybean meal finished higher, while bean oil slipped.
• November soybean futures broke through all three major moving averages on Friday. Despite late-session weakness, the contract closed above the 50-day moving average at $10.34 ½ — the first such close since July 3, signaling near-term technical strength.
• Soybeans drew support this week from surging soybean oil prices, which hit new highs Thursday. However, with no progress on a U.S.-China trade deal, futures remain rangebound. China typically ramps up U.S. purchases in August, but a potential Trump-Xi meeting still appears weeks away.
• For the week, August soybeans gained 23-1/2 cents at $10.27-3/4 while November gained 28-1/2 cents to $10.35-3/4. August soybean meal gained $3.70 to finish at $274 and August soybean oil gained 2.07 cents to close the week at 55.82 cents.

WHEAT HIGHLIGHTS:

• Wheat futures led the grain complex higher, posting double-digit gains for both Chicago and Kansas City contracts. Early strength was likely sparked by news of new EU sanctions against Russia. Although these measures target the energy sector, some support spilled over into the grain markets.
• September Paris milling wheat futures broke through and closed above the 50-day moving average resistance today, offering a boost to the U.S. market.
• According to Chinese customs data, their June wheat and wheat flour imports totaled just 350,000 mt, down 70.6% year over year for that month. The year-to-date figure at 1.96 mmt is down 78.9% year over year.
• In an update from the Buenos Aires Grain Exchange, Argentine wheat planting was reported at 92.8% complete, up from 91% last week. An estimated 6.7 million hectares will be planted in total, up from 6.3 million last year.
• France’s wheat harvest has advanced to 71% complete as of July 14, according to FranceAgriMer. This is up sharply from the 36% that was collected as the week before, and only 12% at this time a year ago.

DAIRY HIGHLIGHTS:

• Class III milk futures were mostly higher going into the weekend, led by the December contract which was up 9 cents to $18.44.
• Spot cheese improved 0.6250 cents to close end the week at $1.65125/lb. Whey fell 1.50 cents to go home at $0.5575/lb.
• Class IV milk futures were steady to slightly weaker on light volume trading. The November contract saw the largest loss of 13 cents to finish at $19.72.
• Spot butter declined 1.75 cents on the day to $2.5125/lb for a total loss of 7.75 cents through the week. Powder was unchanged at $1.29/lb.

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Author

John Heinberg