CORN HIGHLIGHTS:

• Corn futures finished softer Wednesday as harvest pressure and a firmer U.S. dollar limited buying interest despite solid export demand. December corn slipped 2 cents to 424-1/4, while March fell 2 cents to 441.
• Weekly ethanol production averaged 1.024 million barrels/day, down 2.9% from last week and 3% from last year — below expectations. About 102 mb of corn was used, trailing the pace needed to meet USDA’s annual target.
• USDA announced a flash export sale of corn on Wednesday morning. Mexico purchased 312,956 MT (12.3 mb) of corn for the current marketing year.  Since last Friday (9/19), Mexico has purchased nearly 40 mb of U.S. corn. The USDA will release weekly export sales total on Thursday morning.
• The U.S. dollar climbed to near a two-week high, limiting gains across ag commodities.
• Longer-range forecasts show above-normal temperatures and normal to below-normal precipitation into October — favorable for harvest, though harvest pressure is expected to cap rallies.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower after having faded significantly from earlier morning highs, which saw prices up as much as 8 cents, and futures remain below all major moving averages. November soybeans lost 3 cents on the day to $10.09, while March lost 3 cents to $10.44-3/4. October soybean meal lost $3.40 to $271.70 and October soybean oil lost 0.06 cents to 49.29 cents.
• Dr. Cordonnier revised his estimates for the 25/26 soybean yields to be lowered to 52 bpa, down 0.5 bpa from his last estimate. This compares to the USDA’s last estimate of 53.5 bpa. While declining yields could be supportive, the lack of Chinese purchases could offset this in the ending stocks.
• This morning, private exporters reported to the U.S. Department of Agriculture export sales of 101,400 metric tons of soybean cake and meal for delivery to Guatemala during the 2025/2026 marketing year. While China has purchased nearly all of their soy products from South America, other countries are pressured to get their needs from the U.S.
• Reuters reported China has purchased 20 soybean cargoes from Argentina following its temporary export tax cut. While this made Argentine soybeans cheaper, reports also suggest the U.S. will buy Argentine bonds—strengthening the peso and negating some of the competitiveness.

WHEAT HIGHLIGHTS:

• Wheat futures closed lower Wednesday in Chicago and Kansas City, pressured by a stronger U.S. dollar at a two-week high. December Chicago lost 1 cent to 519-1/2, Kansas City fell 4-3/4 to 506-3/4, while Minneapolis was steady at 567-3/4. Paris milling wheat posted a second straight higher close, offering some spillover support.
• U.S. HRW wheat is now priced below comparable Russian and German hard wheats, keeping U.S. export sales ahead of expectations.
• Over the weekend, a storm front brought widespread rainfall to Argentina. However, it was followed by cold air which caused some frost in southeastern areas. This may have caused some wheat damage; however, the rains are timely and are beneficial for wheat development.
• According to the International Grains Council, Russian wheat export prices increased last week, despite falling for other global exporters. U.S. wheat offers at the Gulf are said to be 12% below where they were last year at this time.

DAIRY HIGHLIGHTS:

• Class III milk futures edged lower, as the October contract slipped 6 cents to finish at $17.04.
• Spot cheese prices advanced today, climbing 2.25 cents to close at $1.6425/lb. Spot whey also firmed, adding 0.50 cents to finish at $0.6450/lb.
• Spot butter continued its decline, losing 6 cents to close at $1.6200/lb. Spot powder remained unchanged at $1.1450/lb.
• Class IV contracts weakened further, as November fell 19 cents to settle at $14.55.

Total Farm Marketing and TFM refer to Stewart-Peterson Group Inc., Stewart-Peterson Inc., and SP Risk Services LLC. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of the National Futures Association. Stewart-Peterson Inc. is a publishing company. SP Risk Services LLC is an insurance agency. A customer may have relationships with all three companies. TFM Market Updates is a service of Stewart-Peterson Inc. Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.

Author

Brandon Doherty