CORN HIGHLIGHTS:

• Corn and broader grain markets came under pressure Wednesday as reports of potential U.S.–Iran peace talks weighed on energy markets, spilling over into grains. July corn futures dropped 11 ½ cents to 468 ½, while December corn lost 10 ½ cents to 490.
• Headlines — confirmed by President Trump — suggested progress toward a possible agreement within 48 hours, triggering profit-taking in both energy and grain markets. Corn has now pulled back nearly 20 cents from recent highs set earlier in the week.
• Weekly ethanol production climbed back up to 299 million gallons for the week ending May 1. A total of 100 mb of corn was used that week for ethanol production, which is slightly below the needed pace to reach the USDA ethanol target for the marketing year.
• Freezing temperatures are forecast across the northern Corn Belt through midweek, posing a risk to early-planted corn and soybeans. Any damage could prompt replanting, while cold conditions will continue to slow germination and early growth.
• USDA will release weekly export sales Thursday morning. Export demand is expected to remain strong, with U.S. corn competitively priced — particularly out of the PNW, supported by ample western Corn Belt supplies.

SOYBEAN HIGHLIGHTS:

• Soybeans closed sharply lower, pushing into negative territory for the week. July soybeans are getting back within their previous trading range and were down 16-3/4 cents to 1194-3/4 while November was down 14 cents to 1175-1/2. July soybean meal lost $3.10 to $317.30 and July soybean oil lost 1.89 cents to 75.02 cents as a result of crude oil which fell by $7.30 a barrel.
• Today’s lower price action was due to seemingly encouraging statements by the Trump Administration over a peace deal with Iran. Some headlines said that great progress was being made, while others said that Iran would not accept the US terms. Regardless, the market found this bearish for crude oil which weighed on soybean oil.
• Malaysian palm oil prices have been increasing rapidly and are expected to rise by an additional 12% to $1,316 per metric ton by mid-July. Higher crude oil prices have been the primary driver behind the gains in palm oil, crude oil, and corn for ethanol. Increasing demand for biodiesels are tightening supply.
• On Monday, the USDA released its Crop Progress report. The US soybean crop is now 33% planted which is way ahead of the typical pace. Last year at this time the crop was 28% planted and the 5-year average is 23% for this time of year. 13% of the crop is emerged which is also way ahead of schedule.

WHEAT HIGHLIGHTS:

• Wheat closed modestly to sharply lower across the three futures classes, influenced by the effect of significantly lower energy prices. With the US and Iran angling towards a peace deal, crude oil dropped dramatically overnight, and is hovering around $5-$7/barrel lower this afternoon. MATIF wheat also closed sharply lower, after having left a gap on the charts. In the July contract, Chicago fell 10-1/2 cents to 617-1/4, Kansas City dropped 3 cents to 687, and MIAX posted a 4 cent loss at 692.
• Kansas City wheat finished well off session lows, supported by concerns over potential frost in the southwestern Plains. Any damage would further stress a crop already impacted by drought.
• An Oklahoma wheat crop tour has estimated 2026 statewide winter wheat production at 47.8 mb, with yields averaging just 23.1 bpa. This compares with average production over the past decade at 94.5 mb and harvest having reached 106.4 mb last year. The decline in production comes despite Oklahoma farmers planting 6% more winter wheat acres in 2026 compared to a year ago.
• The Canadian Prairies are expected to see a short-term cold snap over the next five days, potentially slowing planting. However, a drier 10–15 day outlook and adequate soil moisture should support spring wheat progress longer term.

DAIRY HIGHLIGHTS:

• Class III week finished Wednesday with some notable gains as the second month contract tacked on 28 cents to settle at $17.57.
• Spot cheese gained 1.50 cents to hit a 2026 high at $1.6375/lb, while whey was up a half cent to $0.70/lb.
• Another day of sharply higher Class IV futures brought the June contract back over the $22.00 mark.
• Spot butter gained another 3 cents today to move to $1.64/lb, up 8.50 cents on the week. Powder hit a new all-time high, settling up a penny.
• Both March cheese and butter production were up 1.20% from March 2025. Whey and nonfat dry milk production are increasing as well.

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Author

Brandon Doherty