CORN HIGHLIGHTS:

• Corn futures traded slightly lower today as market participants squared positions ahead of Friday’s WASDE report. December corn closed 3-1/4 cents lower at $5.33-1/2, while March corn fell 3-1/4 cents to close at $5.49
• The USDA reported corn export inspections of 65.4 mb for the week ending September 3, up from 59.0 mb the previous week and 56.8 mb during the same week last year, providing a strong start to the 2026/27 marketing year.
• Domestic ethanol demand remains supportive for corn, with USDA data showing nearly 475 mb of corn used for fuel alcohol production during July. Usage was up 2% from June and 4% from July last year, providing another source of underlying demand as the market transitions into the new crop year.
• Managed money has built a historically large position in corn, with CFTC data showing funds net long roughly 431,000 contracts as of September 1. The large speculative position has helped fuel the recent rally, but could also leave the market vulnerable to long liquidation if bullish momentum begins to fade.
• Expectations for disappointing yields across parts of the U.S. Corn Belt continue to provide underlying support to corn futures. Traders are also turning their attention to the USDA’s September WASDE report, where the market will be looking for confirmation of a smaller U.S. crop and tighter supplies.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher after mixed trade throughout the day with support primarily from higher soybean oil that was brought higher by crude oil. November soybeans gained 6-1/2 cents to $13.16-1/4 while March gained 8-1/4 cents to $13.38-1/2. October soybean meal lost $4.90 to $343.30 and October soybean oil gained 1.33 cents to 70.22 cents. Crude oil is up $2.17 to $93.69 due to escalating fighting in Iran.
• The USDA reported soybean export inspections of 15.5 mb for the week ending September 3, up from 9.2 mb the previous week, but below the same period last year. Egypt was the top destination for U.S. soybean shipments during the week.
• China’s soybean imports totaled 74.11 MMT from January through August, up 1.1% from the same period last year. August imports totaled 12.14 MMT, down 1.1% from a year earlier but up 5.7% from July, as Chinese soybean demand remains relatively strong.
• Over the weekend, fighting in the Middle East escalated after Iran-backed Houthi rebels attacked Saudi Arabia. Some of the missiles hit the world’s largest oil facilities and threaten to create a new oil chokepoint for shipping. The US retaliated against Iran, and any sort of peace agreement feels increasingly farther away.

WHEAT HIGHLIGHTS:

• Wheat futures closed moderately to sharply higher across the board, although prices finished well off overnight highs. A weaker U.S. Dollar Index provided support, while a lower close in MATIF wheat futures may have limited gains. Looking at December contracts, Chicago wheat gained 13 cents to close at $7.47, Kansas City wheat rallied 16-3/4 cents to $8.19, and MIAX spring wheat gained 9 cents to close at $7.54.
• Weekly wheat export inspections came in at 12.6 mb, which brings total 26/27 inspections to 188.5 mb, down 28% from last year. Inspections are currently running behind the USDA’s estimated pace; exports in 26/27 are forecasted at 775 mb, down 15% from last year.
• Over the weekend, US negotiators met with their counterparts in Ukraine and Russia for peace talks. However, it appears they were unsuccessful in coming to any solutions as both sides are said to have resumed attacks on each other.
• According to Friday’s Commitments of Traders report, managed funds had a net long of almost 14,700 contracts of Chicago wheat, which is the largest since June of 2022. Meanwhile, their combined net long in the wheat complex near 86,000 contracts is the largest since May of 2022.
• According to the Ukrainian agriculture ministry, their 2026 winter wheat harvest is now 98% complete. An estimated 24.91 mmt of wheat has been collected and average yield sits at 4.94 mt per hectare
• Saudi Arabia is reported to have cancelled their tender to buy 535,000 mt of milling wheat. Submitted offers were deemed “unsuitable”. High prices due to the closure of shipping routes in the Black Sea are likely the reason for the cancellation.

DAIRY HIGHLIGHTS:

• Class III futures were lower coming out of the holiday weekend with the October contract closing down 20 cents at $16.19.
• Spot cheese was down slightly after breaking $1.50/lb last week, and whey was unchanged today.
• Class IV contracts were either unchanged or lower today with October giving back just a penny for a $19.34 settlement.
• Spot cheese fell to $1.4025/lb after falling 3.75 cents while powder was 1.25 cents higher for a $1.8925/lb close.

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Author

Brandon Doherty