CORN HIGHLIGHTS:

• Late buying strength helped lift corn off session lows going into the close as the grain market saw buying strength after the Federal Reserve raised interest rates. Despite late buying, December corn closed 1 ½ cents lower to 534 ¼, while March fell 1 ¼ cents to 548 ¾.
• The Federal Reserve raised its benchmark interest rate by 25 basis points in a widely anticipated move. The decision supported the U.S. dollar while also signaling continued concern over inflation. Commodities can provide a hedge against inflation, which helped support buying across the grain complex late in the session.
• Soybeans and wheat both closed with mild gains Wednesday as late-session buying spilled into the corn market and helped lift futures off their session lows.
• The USDA will release weekly export sales on Thursday morning. Expectations for new corn sales are to range from 700,000 to 2.0 MMT. Current new crop corn sales are trending 28% under last year.
• Ethanol production held steady last week at 323 million gallons. This was above market expectations, and 4% higher than last year. A total of 108 mb of corn was used last week in ethanol production.

SOYBEAN HIGHLIGHTS:

• Soybeans ended higher for the third consecutive session, once again recovering from early weakness. Talk that President Trump and Chinese President Xi could agree to lower tariffs on agricultural exports provided support, while lower crude oil pressured soybean oil. A weaker-than-expected crush report was another bearish factor for soybeans.
• November soybeans gained 1-3/4 cents to $13.20-1/2 and made a high of $13.32-1/4 which was just shy of the contract high of $13.35. March soybeans gained 2-1/4 cents to $13.45-1/4, October soybean meal gained $0.80 to $360.90, and October soybean oil lost 0.69 cents to 69.19 cents. Crude oil was the big loser today down $3.42 a barrel to $102.42.
• NOPA soybean crush came in well below expectations for August at 205.46 mb, the lowest in 11 months. The figure was below the 210 mb estimate and down 5.2% from July’s 216.65 mb. Despite the monthly decline, August crush was still 8.2% above last year.
• Conab released its estimates for Brazilian soybean production with the 25/26 number down slightly from last month at 180.41 mmt and exports down to 116.20 mmt. Ending stocks are seen at 9.17 mmt for 25/26. Their first outlook for 26/27 soybean production is now at 181.6 mmt, which is the slowest soy area growth in 20 years.

WHEAT HIGHLIGHTS:

• Despite a sharp drop in crude oil prices that pressured wheat early, futures managed a higher close across all three classes. Support came from a higher MATIF wheat close and bullish Statistics Canada production data, while Black Sea shipping restrictions continue to influence the market. In the December contract, Chicago gained 2-1/4 cents to 730-3/4, Kansas City climbed 3-1/4 cents to 799-1/2, and MIAX rallied 7-1/2 cents to 756.  
• Statistics Canada forecast 2026/27 all-wheat production at 36.1 MMT, in line with the USDA but well below the pre-report expectation of 38.3 MMT. The estimate is also down from last year’s 40 MMT crop, providing support to spring wheat futures.
• The Federal Reserve raised interest rates by 25 basis points at this afternoon’s FOMC meeting, sending the U.S. Dollar higher. The Dollar Index moved back above 100 for the first time in roughly a month, creating a potential headwind for wheat futures overnight and Thursday.
• According to SovEcon, shipping disruptions in the Black Sea are being severely underpriced by the market. Additionally, they estimate combined Russian / Ukrainian wheat shipments July-September will reach only 8 mmt. This would compare with 16.2 mmt shipped last year and the five-year average of 18.2 mmt. It would also be the lowest amount shipped since 2010.
• Algeria is reported to have purchased about 500,000 mt of milling wheat in their tender. The price paid is near $320/mt on a CNF basis. Romania and Bulgaria are believed to be the main suppliers, though some wheat could also come from northern Europe and possibly Russia.

DAIRY HIGHLIGHTS:

• Class III milk ended the day mostly lower, while some of the remaining 2026 contracts saw a little boost.
• Spot cheese had gains today ending up 0.50 cents to close at $1.44250/lb. Spot whey remained unchanged at $0.7625/lb.
• Class IV milk saw some gains today, with October up 26 cents at $19.54.
• Spot butter remained unchanged at $1.3550/lb. Spot powder gained another 1.50 cents to close at $2.050/lb.

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Author

Brandon Doherty