CORN HIGHLIGHTS:

• Corn futures posted moderate losses as broader selling pressure across the grain markets, lower crude oil prices, and favorable weather conditions weighed on prices. July corn futures lost 5 3/4 cents to 457 ½, and December corn lost 4 ½ cents to 482.
• Due to the Memorial Day holiday, the USDA released weekly export inspections on Tuesday morning. For the week ending May 21, US exporters shipped 1.582 BB (62.3 mb) of corn. This was within the range of expectations and slightly higher than last week’s total. Total corn export shipments are trending 28% above last year.
• USDA will be releasing the Planting Progress report on Tuesday afternoon. Expectations are for corn planting to near 87% planted as of May 24. This is up 12% from last week, and planting moves into its final stages.
• Weather forecasts are staying friendly for crop production going into early June. The largest concern could be a return to a drier forecast and how long that dryness could continue.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower with pressure primarily coming from lower soybean meal and lower crude oil futures. The drop in crude oil prices came despite new attacks between the US and Iran yesterday. July soybeans lost 10-1/2 cents to $11.86 while November lost 7-1/2 cents to $11.80-1/4. July soybean meal lost $3.30 to $328.60 and July soybean oil gained 0.38 cents to 74.36 cents.
• Today’s export inspections report remained sluggish for soybeans but was above analysts’ expectations. Soybean inspections totaled 21 million bushels for the week ending May 21 which was above the upper range of analyst guesses. Total inspections for 25/26 are now at 1.291 bb, which is down 21% from the previous year. The USDA expects inspections to be down 19% from last year.
• Argentina will reportedly cut its export taxes on soy and other grains starting on January 2027 by 0.25% per quarter, and then after January 2028 this will increase to 0.50% per quarter. This will likely bring more export competition.
• Friday’s CFTC report saw funds as sellers of soybeans as of May 19. They sold 7,011 contracts of soybeans reducing their net short position to 207,804 contracts. They sold 5,853 contracts of bean oil leaving them long 156,434 contracts and bought 14,472 contracts of bean meal leaving them long 130,554 contracts.

WHEAT HIGHLIGHTS:

• Wheat ended Tuesday’s session lower across all classes, pressured by the potential reopening of the Strait of Hormuz, as growing expectations for an end to the conflict weighed on crude oil prices. July Chicago wheat ended the day 11-1/4 cents lower at 6.35 while July Kansas City wheat ended the day 5-1/4 cents lower at 6.76-3/4.
• Weakness is also being driven by the sharp slowdown in wheat export sales, as U.S. wheat has become overpriced relative to the rest of the world. Hard red wheat sales over the past four weeks totaled just under 3 million bushels, while cumulative new-crop wheat sales are reportedly running 51% below last year’s pace at this time.
• SovEcon reported that Ukraine’s wheat stocks are rising, with exports expected to increase significantly this year to 21.2 million metric tons, up from 13.2 million tons the previous year.
• Rabobank estimates the Australian 2026/27 wheat crop could fall 41% year over year, driven by a 20% decline in planted acreage.

DAIRY HIGHLIGHTS:

• Class III contracts were mostly lower today with the exception of the June contract, which finished 3 cents higher.
• Spot cheese fell 1.1250 cents to $1.48125/lb as sellers remains in contract. Whey was up a half cent to $0.6850/lb.
• Losses on the Class IV side were heavier with the Q3 months all down more than 30 cents from Friday’s close.
• Spot butter was 2.50 cents higher today on 36 loads traded, but powder was down again, losing 3 cents to move to $2.0425/lb.

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Author

Brandon Doherty