CORN HIGHLIGHTS:

• Corn market finished strongly higher on Wednesday, supported by buying strength in wheat and a larger than expected yield drop on the USDA Crop Production report. September corn gained 20¼ cents to 457, while December added 20¼ cents to 480¾, with both contracts gaining more than 4% on the session.
• USDA lowered its national corn yield estimate to 180.7 bpa, reflecting July heat and dryness and coming 2.3 bushels below the average trade estimate. However, USDA also raised planted acreage by nearly 1.4 million acres based on FSA data and producer surveys. The combined supply and demand adjustments lowered 2026/27 ending stocks to 1.653 BB, with stocks-to-use at 10.1%.
• Despite the lower yield estimate, 180.7 bpa would still rank as the second-highest U.S. corn yield on record. Total production is forecast near 16 billion bushels, potentially the second-largest crop in history.
• An increase in tension between Ukraine and Russia helped push the wheat market higher, supporting corn before the USDA report was released. Concerns regarding wheat and corn exports have been supporting the corn market.
• Weekly ethanol production trended higher last week, reaching 328 million gallons, up 3 million gallons over last week. 110 mb of corn was used last week in ethanol production, slightly ahead of the needed pace to reach the USDA target of 5.450 BB.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher following a bullish WASDE report that was friendly to corn and wheat as well. November futures surged to nearly $12.00 following the release of the report but retreated by 17 cents into the close. Both soy products were higher, but soybean meal led the way, and a flash sale to China was supportive as well.
• September soybeans gained 13-3/4 cents to 1165-1/4 and hit their highest level since the end of July while November soybeans gained 14-1/2 cents to 1183-1/4. September soybean meal gained $3.50 to $308.50 and September soybean oil gained 0.59 cents to 69.16 cents. Crude oil traded quietly today and is up just 18 cents a barrel to $83.40.
• USDA’s WASDE report was supportive for soybeans, lowering yield to 52.7 bpa from 53.0 last month and below the average trade estimate. However, planted acreage increased by roughly 1 million acres, lifting 2026/27 ending stocks to 320 mb from 310 mb last month. World ending stocks were virtually unchanged.
• This morning, private exporters reported a sale of 244,000 metric tons of soybeans to China for the 26/27 marketing year. China has now fulfilled around 17% of its commitment to buy 25 mmt of US soybeans this marketing year. The number may be higher if some sales to unknown destinations end up being China.

WHEAT HIGHLIGHTS:

• The wheat market closed sharply higher. While today’s WASDE was slightly bullish for wheat, it was already up significantly prior to the report; overnight Ukrainian attacks on major Russian export facilities added war premium to the marketplace. In the September contract, Chicago rallied 22-1/2 cents to 652-3/4, Kansas City climbed 21-1/2 cents to 720-3/4, and MIAX gained 13-3/4 cents to 673.
• USDA lowered 2026/27 all-wheat production by 5 mb from July to 1.531 BB. HRW production fell 8 mb to 463 mb, while HRS dropped 1 mb to 474 mb. White wheat increased 8 mb to 240 mb, while durum declined 5 mb to 66 mb.
• For the 25/26 season, the USDA kept wheat carryout unchanged at 920 mb. However, for 26/27, ending stocks fell 5 mb to 717 mb. Globally, 25/26 carryout increased 1.2 mmt to 280.2 mmt and for 26/27 there was an increase of 0.5 mmt to 273.3 mmt.
• The U.S. Dollar Index rallied following largely in-line July CPI data, providing a headwind for wheat. Consumer prices rose 0.1% during the month, while core inflation increased 0.2%.
• So far for the month of August, both Russian and Ukrainian grain exports are down significantly compared to a year ago. Russia’s total grain exports are down 22% to 976,400 mt, while Ukraine’s are down 75% at 280,000 mt. When looking at wheat specifically, Russian exports are down 18% year over year at 801,500 mt for the first 10 days of August. And since exports began on July 1, Ukraine has shipped 1.2 mmt of wheat, down 20% year over year.

DAIRY HIGHLIGHTS:

• Class III futures ended the day split, with the remaining 2026 contracts posting gains while 2027 contracts finished lower.
• Spot cheese and spot whey both remained unchanged at $1.57625/lb and $0.6975/lb, respectively.
• Class IV milk ended the day mostly higher, with October leading gains, up 46 cents at $18.28.
• Spot butter was down 0.75 cents, closing at $1.4625/lb, while spot powder gained 5 cents to close at $1.6500/lb.

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Author

Amanda Brill