CORN HIGHLIGHTS:

• Corn market started the week lower as long liquidation; favorable weather keeps the selling pressure on the corn market. Prices did find last session strength, holding the next support level to firm off session lows going into the close. July corn lost 2 ¾ cents to 444, and December corn lost 2 ½ cents to 472 ½.
• Money flows have continued to leave the corn market as bullish stories have been fading. On Friday’s Commitment of Traders report, Managed Funds liquidated another 87,850 net long positions as of May 26. Funds still have a net length of 205,504 contracts, which could be vulnerable to additional long liquidation if bullish news remains elusive to the market.
• Weekly Export inspections reached 1.728 MMT (68 mb) for the week ending May 28. Total corn inspections for the marketing year have reached 2.439 BB, up 27% over last year. USDA target for the marketing year is 3.300 BB. The marketing year ends on August 31.
• Dry weather concerns could limit some production in key corn growing areas of Brazil. The second corn crop in total is forecasted to reach 106 MMt despite the dry weather impacts. Argentina corn crop remains record large at 64 mmt and up 15 MMT over last year’s drought stressed crops.
• Current US weather models have turned wetter in extended forecasts as rainfall is predicted to be more widespread across the corn belt going into the end of the week. If realized, the market will be less concerned about early season weather impacts.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower, though the market displayed a bear-spreading pattern with the largest losses concentrated in nearby contracts while deferred futures posted only modest declines. Sharply higher soybean oil likely prevented further losses. July soybeans lost 6 cents to $11.80-3/4 while November lost 1-1/4 cents to $11.88-3/4. July soybean meal lost $3.30 to $326.50 while July soybean oil gained 1.37 cents to 79.09 cents. July crude oil gained $5.22 a barrel to $92.59.
• Today, crude oil spiked higher following news that Iran was halting peace talks with the US as a result of Israeli attacks on Lebanon. While soybean oil likely got a boost from crude, it has been rallying on days where crude oil posted losses as demand for soybean oil continues to rise sharply.
• Estimates for today’s Crop Progress report see soybean planting at 89% complete according to analysts. This would compare to 79% last week. We will also see the first crop condition ratings of the season, and this is estimated at 68% good to excellent. A year ago at this time, the USDA said the soybean crop was rated 67% good to excellent.
• Friday’s CFTC report saw funds as sellers of soybeans. As of May 26, they sold 18,252 contracts reducing their net long position to 189,552 contracts. They sold 15,016 contacts of soybean oil which left them long 141,418 contracts and they sold 7,575 contracts of soybean meal leaving them long 122,979 contracts.

WHEAT HIGHLIGHTS:

• The spring class led the wheat complex to the downside today, likely due to storms over the weekend in the northern plains and Canadian prairies. Parts of these areas received heavy rains, boosting soil moisture reserves and easing drought stress. In the July contract, Chicago fell 1-3/4 cents to 608-3/4, Kansas City declined 2-3/4 cents to 647, and MIAX dropped 11-3/4 cents to 652.
• Weekly wheat export inspections were pegged at 14.8 mb, which brings total 25/26 inspections to 878 mb, up 9% from last year. Wheat inspections are now running slightly behind the USDA’s projected pace; total 25/26 exports are forecasted at 910 mb, up 10% from the year prior.
• According to the Central Statistical Office of Poland, their grain sown area increased 2.9% to 5.6 million hectares. Winter grain planting specifically increased 0.9% to 4.5 million hectares. And of that total, winter wheat is said to account for 2.3 million hectares.
• The Russian agriculture minister has stated that for the 25/26 season, Russia will export 60 mmt of grain. This compares with the previous estimate of 54-55 mmt. Wheat exports are expected to comprise 50 mmt of the total.
• Ukrainian grain trader’s union, UGA, has estimated their nation’s 2026 wheat harvest at 22.8 mmt, which would be up from the 22.5 mmt harvest in 2025. Furthermore, they estimate 26/27 wheat exports will reach 17.0 mmt, compared with 13.5 mmt the season prior.

DAIRY HIGHLIGHTS:

• Class IV continued its recent rally to start the week. July futures gained an impressive 65 cents to close at $21.15.
• Spot butter was up 0.25 cents to settle at $1.67/lb, while powder tacked on 4 cents to go home at $2.13/lb.
• Class III was mixed on the day, with front month contracts marginally better while distant contracts were slightly lower. July added 18 cents to close at $16.88.
• Spot cheese was unchanged from Friday at $1.4750/lb. Whey fell half a cent to settle at $0.6850/lb.

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Author

John Heinberg