CORN HIGHLIGHTS:

• General selling pressure came into the grain markets on Wednesday as the market saw some light profit taking during the session. December corn lost 2 ½ cents to 543 ½, and March corn slipped 2 cents to 558 ¼.
• December corn has become technically overbought after challenging the 550 level, which may have encouraged some producer selling and long liquidation. Thursday’s trade will be important, particularly with the three-day Labor Day weekend approaching.
• Ethanol Production slipped to 326 million gallons last week. This was down 1 million gallons from last week, but up 3.3% over last year. Total corn used last week reached 109 mb. Current usage for ethanol production will be very close to the USDA forecast of 5.550 BB for the marketing year, which ended on August 31.
• USDA’s weekly export sales report is due Thursday morning, with attention focused on the 2026-27 corn sales pace, which remains 30% behind last year. No new-crop corn sales have been announced since August 21.
• Hot and mostly dry conditions across the Corn Belt are accelerating crop maturity. While faster maturity is generally favorable this time of year, continued heat and dryness could hurt yield potential in areas where the crop still needs additional grain fill and kernel development.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower after making new contract highs overnight with November hitting some resistance near the $13.25 level. Some profit taking may have occurred today, but soybeans took out the previous day’s high 7 days in a row which indicates that the uptrend is still in effect. Soybean oil led the way lower despite slight gains in crude oil.
• November soybeans lost 7-1/2 cents to $13.10-1/4 while March soybeans lost 6-3/4 cents to $13.30-1/2. There have still been no deliveries against September soybeans. October soybean meal lost $2.80 to $342.90 and October soybean oil lost 1.81 cents to 70.64 cents. October crude oil is up 50 cents to $90.73 as tensions with Iran and between Russia and Ukraine escalate.
• StoneX raised its estimate for Brazil’s 2026-27 soybean crop to a record 183.5 MMT, up from 183.1 MMT previously. The larger crop is attributed in part to expectations for stronger rainfall in southern Brazil associated with the developing El Niño.
• This morning, private exporters reported a sale of 202,000 metric tons of soybeans for delivery to China during the 26/27 marketing year. China is now rapidly progressing through their commitment to buy 25 mmt of US soybeans this marketing year. This follows a sale to China yesterday of 136,000 metric tons.

WHEAT HIGHLIGHTS:

• After a two-sided trade, winter wheat closed lower with bear spreading as a noted feature. Spring wheat did manage a positive close, despite finishing well off session highs. It is likely that hitting new contract highs this session led to profit taking, especially with how technically overbought the market is. In the December contract, Chicago lost 8-1/2 cents to 774, Kansas City fell 11 cents to 834-1/4, and MIAX gained 5-1/4 cents to 782.
• Russia is reportedly eliminating grain export taxes through the end of the year as part of an effort to restructure logistics. Ukrainian attacks have disrupted shipping through the Black and Azov Seas, which normally handle more than 70% of Russian grain exports.
• According to the European Commission, EU soft wheat exports have reached 4.2 mmt since the season began on July 1. This represents at 4% year on year decline. Leading importers of this wheat include Saudi Arabia, Algeria, and Nigeria.
• Ukraine’s largest farmer union, UAC, has stated that farmers and exporters need to be prepared for the possibility that deep water ports will not resume operations until December or January. The Odessa region previously accounted for about 90% of Ukrainian exports, but that route has been effectively blocked. Many of Ukraine’s shipments have been re-routed to Danube river ports, but these alternative routes cost up to $50/mt more than the deep water ports.
• Temperatures in Argentina during the 6-10 day forecast are expected to be 2-4 degrees Celsius below normal. This brings the potential for frost risks at the end of the week, which could be a threat to their developing wheat crop.

DAIRY HIGHLIGHTS:

• Class III milk came under pressure today, with the remaining 2026 contracts closing lower along with most of the 2027 contracts. October was down 20 cents at $16.59.
• Spot cheese remained unchanged at $1.50375/lb, while spot whey also held steady at $0.74/lb.
• Spot butter was up 1.50 cents, closing at $1.4075/lb. Spot powder fell 2 cents to $1.880/lb.
• Class IV milk also trended lower today, with red across the board. October closed 29 cents lower at $19.51.
• August settlement prices for milk came in at $16.64 for Class III and $17.36 for Class IV.

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Author

Brandon Doherty