CORN HIGHLIGHTS:

• Corn futures closed mostly higher with modest gains, except for the September contract. Strong export demand and worries about dry conditions in the eastern Corn Belt bolstered prices.
• The USDA announced a flash sale of 124,000 metric tons (4.9 million bushels) of 2025/26 corn to an unknown destination, reinforcing strong new-crop export sales despite China’s absence.
• Weekly corn export inspections were toward the bottom end of expectations as U.S. exporters shipped 1.05 MMT (41 mb) for the week ending August 14. This total was below the 53 mb needed to reach the revised USDA forecast of 2.820 bb. The marketing year ends at the end of August.
• The Pro Farmer Crop Tour, currently underway, is closely watched by corn and soybean markets. Yield estimates for Ohio and South Dakota will be released tonight, with final national yield projections expected later this week.
• Drier and warmer-than-normal conditions in the eastern Corn Belt are accelerating corn crop maturation, supporting futures prices but raising concerns about potential yield reductions due to a rushed finish.

SOYBEAN HIGHLIGHTS:

• Soybean futures ended lower after overnight losses and intraday gains faded into the close. November futures remain above all major moving averages but face resistance at $10.60. Soybean meal closed lower, while soybean oil tracked crude oil higher.
• On Friday, NOPA crush numbers were released, and July crush jumped to 195.699 million bushels which was well above the average trade guess of 190.8 mb and was a six-month high for the month of July. It was up 5.6% from the June’s 185.27 mb.
• Forecasts predict warm summer temperatures and sufficient moisture through the rest of the month, aiding soybean pod fill. The USDA may raise yield estimates in the next report, but lower export demand could increase ending stocks.
• Friday’s CFTC report saw funds as buyers of soybeans by 30,660 contracts which reduced their net short position to 35,270 contracts. They sold 10,527 contracts of bean oil leaving them long 44,412 contracts and bought back 24,238 contracts of meal leaving them short 109,309 contracts.

WHEAT HIGHLIGHTS:

• Wheat futures closed slightly lower after a subdued session, with ample global supplies keeping prices under pressure. Recent rains in the northern Plains likely delayed the U.S. spring wheat harvest.
• Weekly wheat inspections amounted to 14.5 mb, which brings total 25/26 inspections to 177 mb, up 4% from last year. Inspections are running below the USDA’s estimated pace; total 25/26 exports are projected at 875 mb, up 10% from last year.
• IKAR raised its Russian wheat production estimate by 1 million metric tons to 85.5 million metric tons, compared to the USDA’s 83.5 million metric tons. IKAR also projects Russian wheat exports at 42.5 million metric tons, above the USDA’s 39 million metric tons, adding to global supply pressure.
• Widespread rain is expected across Argentina’s wheat regions, with southern areas potentially seeing frost but minimal crop damage. Northern areas, where wheat is starting to head, could face damage if frost occurs.
• According to Chinese customs data, their July wheat and wheat flour imports totaled 410,000 mt, which is down 48.3% year over year. Year to date total wheat and wheat flour imports are down a whopping 76.4% at 2.37 mmt.

DAIRY HIGHLIGHTS:

• Spot cheese nearly recovered from last week’s losses, improving 4.25 cents to close at $1.82/lb. Whey gained half a cent to go home at $0.6050/lb.
• Class III milk futures were led higher by the spot trade. September futures added 42 cents to close at $18.76.
• Spot butter gained 3.25 cents to start the week, closing at $2.3325/lb. Powder prices were unchanged from Friday’s close at $1.27/lb.
• Class IV milk futures got a boost from increasing butter prices to start the week. November futures saw the largest gain of 23 cents to close at $18.50.

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Author

Brandon Doherty