CORN HIGHLIGHTS:

• Strong buying returned to the corn market on Tuesday, supported by an unexpected drop in crop ratings and Money flow into the soybean market. September corn added 9 cents to 500 ½, while December corn added 8 cents to 523 ½ as the corn market set new contract high during the session.
• USDA weekly crop rating slipped below expectations at 57% G/E, down 3% from last week. This is also below the 5-year average of 60%. A total of 17% of the crop was rated poor to very poor, up 2% over last week and 9% higher than last year.
• Recent changes in Monetary policy by the US Treasury have pressured the US Dollar to a 3-month low and provided support into ag commodities.
• The corn crop is trending ahead of last year and the 5-year average for maturity. A total of 86% of the crop has reached the dough stage, 45% has reached the dent stage, and 6% is mature.

SOYBEAN HIGHLIGHTS:

• Soybean futures ended the day higher, recovering nearly all of Monday’s losses as funds stepped in to buy the dip following the recent pullback. The move higher came amid another drop in crop conditions in yesterday’s Crop Progress report and also despite sharply lower crude oil prices today. Corn has been driving the rally in grains as traders expect significantly lower yield this season.
• September soybeans gained 12 cents to $12.29 while November gained 13-1/2 cents to $12.37-3/4. Resistance is now likely at the contract high for November beans, which is at $12.56-1/2. September soybean meal was unchanged at $320.30, and September soybean oil gained 0.39 cents to 67.52 cents. First notice day for September futures is on the 31, so long positions should be exited this Friday to avoid delivery.
• Yesterday’s Crop Progress report saw soybean good to excellent ratings fall by 1 point from last week to 60% which compared to 69% at this time last year and the 5-year average of 62%. 91% of the crop is setting pods and 6% is dropping leaves which is ahead of the normal pace for this time.
• Yesterday’s export inspections were within analyst trade ranges for soybeans. Inspections totaled 15.5 million bushels for the week ending August 20 and this put total inspections for 25/26 at 1.487 bb, which is down 18% from the previous year. Top destinations were to Egypt, Indonesia, and Italy.

WHEAT HIGHLIGHTS:

• Wheat finished mostly higher despite a weaker start to the day. Spillover support from rallying corn and soybean futures helped, as did the slightly weaker US Dollar Index. In the September contract, Chicago rallied 3-3/4 cents to 685-1/2, Kansas City was up 4 cents at 754-1/2, and MIAX gained 1/4 cent to 694.  
• As indicated by the USDA’s crop progress report, spring wheat was rated 51% good to excellent, representing a drop of 1% from the week before. Additionally, harvest jumped 21% on the week to 62% complete, which was a faster than expected pace. For reference, the crop was 51% harvested at this time last year, and the average pace is 52%.
• Ukraine’s 2026 wheat harvest is said to be almost finished. Reportedly, 5 million hectares have been threshed, representing 97% of their planted area. An estimated 24.6 mmt of wheat has been collected so far, and the average yield was 4.92 mt/hectare. For reference, the USDA is forecasting their total production at 25.4 mmt.
• According to Ukrainian President Zelensky, their nation’s seaborne grain exports are not fully blocked. Nevertheless, they are in talks with Russian President Putin to discuss safe transport of grain through the Black Sea.
• Morocco stopped imports of soft wheat this summer due to an improved domestic crop. Now, however, imports will resume in mid-September. Subsidies for the imported wheat will be offered between September 16 and December 31. Morocco is one of the world’s top wheat importers and is also the number one importer of EU wheat.

DAIRY HIGHLIGHTS:

 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