The CME and Total Farm Marketing Offices will be closed Monday, May 26, in Observance of Memorial Day

CORN HIGHLIGHTS:

• Corn futures ended the week on a softer note, weighed down by renewed trade tensions with the European Union and end-of-week profit-taking. Despite Friday’s pullback, July corn still closed 16 cents higher on the week—its first weekly gain after five straight weeks of losses.
• The corn market had to fight off early session selling pressure on Friday as President Trump made comments about the disappointing pace of trade negotiations with the European Union. The administration is planning a 50% tariff on the EU starting on June 1. The headline pressured the entire market complex to start the day.
• June corn options expired Friday, contributing to intraday volatility. Markets often gravitate toward areas of heavy open interest during expiration, and this month’s concentration around the $4.55–$4.60 strikes added technical pressure.
• Looking ahead, early June weather is set to take center stage. The National Weather Service’s 8–14-day outlook shows a hot and dry pattern across much of the Corn Belt. If this trend continues, concerns over early-season dryness could support prices heading into the summer.

SOYBEAN HIGHLIGHTS:

• Soybean futures closed lower Friday, pressured alongside the broader grain complex after former President Trump’s renewed tariff threats against the EU rattled markets. Despite the pullback, soybeans still notched weekly gains. Soybean meal ended the day lower, while soybean oil finished higher amid continued volatility.
• The Buenos Aires Grain Exchange released its weekly crop report which did not have an updated production number, it was kept at 50 mmt despite the recent flooding, but the bean crop is now said to be 74.3% harvested.
• For the week, July soybeans gained 10-1/4 cents while November soybeans gained 15 cents. July soybean meal gained $4.30 on the week to end at $296.20, and July soybean oil gained 0.42 cents at 49.35 cents. Trade in soybean oil has been volatile due to rumors floating back and forth about potential biodiesel blending obligations.
• Managed Money remains net short in soybeans, with hedge funds holding a 38,000-contract short as of last week’s CFTC report. While this week’s strength likely trimmed that position, a shift to net long will likely require a larger bullish catalyst. Global supply burdens and persistent demand concerns continue to cap upside potential into the summer.

WHEAT HIGHLIGHTS:

• Wheat futures had another mixed close, posting small losses in Chicago and Kansas City, but modest gains in Minneapolis. Relative to corn and soybeans, the wheat close appears strong. With little other fresh news to drive the market, talk that President Trump may enact 50% tariffs on the EU beginning June 1 weighed on both equity and grain markets today.
• According to the Buenos Aires Grain Exchange, wheat planting in Argentina is only 3.4% complete. This compares with 13% at this time last year, and a five-year average pace of 7%. Recent heavy rains and flooding have been the cause of slow soybean and corn harvests, in addition to the slow wheat sowing pace.
• The Rosario Grain Exchange is estimating Argentina’s wheat crop could exceed 21 mmt. If realized, this would be the second largest crop on record. For reference, the USDA is estimating the Argentine crop at 20 mmt, while the Buenos Aires Grain Exchange is projecting a 20.5 mmt crop.
• In the U.S., drought conditions continue to ease. Just 21% of winter wheat acres are experiencing drought, down 2% from last week, while spring wheat drought coverage dropped sharply from 38% to 29%.
• On a bearish note, the International Grains Council has increased their estimate of global 25/26 grain stockpiles by 5 mmt from last month, to 585 mmt. This is in part due to an increased wheat stockpile estimate, going from 260 mmt in April to 262 mmt this month.
• Since their export season began on July 1, Ukrainian grain exports have now reached 37.6 mmt according to their agriculture ministry. For the same time period, this is a reduction of about 17% year over year. Of the total, wheat exports account for 14.6 mmt, which is down 14% year over year.

DAIRY HIGHLIGHTS:

• Class III futures traded higher up until the spot trade for dairy products was released. June futures traded as high as $19.99 before closing 65 cents off that high at $19.34.
• Spot cheese was the culprit leading to weaker Class III prices today. Spot cheese fell 4.75 cents to close at $1.86125/lb. Whey was unchanged at $0.5425/lb.
• Class IV futures saw double-digit gains in June through December contracts. The October contract led the way higher, gaining 40 cents to close at $19.72.
• Spot butter has quietly started to move higher after gaining 5.75 cents to close at $2.42/lb. This is Butter’s highest level since February. Powder improved 2.25 cents to $1.2525/lb.

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Author

Brandon Doherty