CORN HIGHLIGHTS:

• Corn futures stayed under pressure to end the week and prices closed lower for the fourth consecutive day. Additional technical selling, as general overall commodity market selling pressure going into the end of May, weighed on corn futures. July corn finished down 18 ½ cents on the week and dropped 24 ¾ cents off the high for the week.
• The technical picture for corn futures remains weak. Weekly corn charts posted a second bearish reversal in three weeks and are challenging key trendline support under the market. Prices finished the week near the bottom of the trading range which could trigger additional selling pressure to start next week.
• The USDA released weekly export sales on Friday morning with sales data for May 17-23. The USDA reported new sales of 31.9 mb (810,000 mt) for the 23/24 marketing year and 7.4 mb (187,800 mt) for 24/25. Total 23/24 sales are running 31% ahead of last year’s pace.
• Weather remains a focus of the market as precipitation is expected across areas of the Corn Belt over the weekend. The corn crop is likely over 85% planted, but the last 10-15% may be difficult given the wet spring. Even though, the market is shifting its focus to summer weather for the developing crop.
• As the corn market turns the calendar into June, volatility could remain high with three USDA reports, two WASDE and planted acres reports, and two holidays in the next six weeks.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower after higher overnight trade that saw prices fade into the close. July soybeans briefly traded down to the 100-day moving average at 1204 ½ which may act as support. Soybean meal was mixed with just the front month higher and deferred contracts lower, while soybean oil was lower across the board.
• For the week ending May 23, the USDA reported an increase in export sales totaling 12.1 mb of soybeans for 23/24 and an increase of 0.3 mb for 24/25. commitments are now down 15% from a year ago. Last week’s export shipments of 7.7 mb were below the 12.6 mb needed each week to meet the USDA’s estimate of 1.700 bb for 23/24. Primary destinations were to China, Egypt, and Mexico.
• For the week, July soybeans lost 43 cents bringing them down to 1205, and November soybeans lost 35 cents to 1184 ½. July soybean meal lost $21.80 to $364.70, and July soybean oil gained 0.57 cents to 45.52 cents. Pressure came from the advancement of planting in the US and the ongoing South American harvest.
• The Buenos Aires Grain Exchange has released its weekly crop estimates report which shows them pegging production at 50.5 mmt which is lower than the USDA’s guess but much higher than last year’s 21.0 mmt. The crop is reportedly 86% harvested which compares to 77.9% last week.

WHEAT HIGHLIGHTS:

• All three wheat classes settled near unchanged following a day of volatile two-sided trade in 17 – 19 cent ranges across the complex, as traders likely consolidated positions ahead of the weekend. Bear spreading was also noted in both Kansas City and Chicago, where the nearby contracts lost to the deferred.
• For the week ending May 23, the USDA reported net export sales cancellations on 2.2 mb of wheat for 23/24 and new sales totaling 14.0 mb for 24/25. Total sales were on the low end of trade estimates for the old crop but above trade estimates for the new crop. Last week’s export shipments came in at 13.0 mb, below the 20.6 mb needed each week to achieve the USDA’s estimate of 720 mb for 23/24. Primary destinations were the Philippines, Taiwan, and Japan.
• Russia’s Deputy Prime Minister, as reported by Tass, maintains the forecast for the country’s wheat harvest at 85 mmt for this year’s 2024 crop, despite large amounts of frost damage that affected about 2.1 million acres of wheat. The USDA’s forecast is currently 88 mmt.
• According to a report by the European Commission, the group’s forecast for the EU’s 24/25 wheat crop remains steady at 120.2 mmt from April’s estimate. Though production remains steady the region’s ending stocks are expected to increase from 12.2 mmt to 13.5 mmt with exports forecast at 31.1 mmt.
• Argentina has begun its wheat planting for the 24/25 season, with progress estimated at 9.7% complete. Good soil moisture and improved profit margins have encouraged farmers to increase planted area this year by an estimated 5.1% according to the Buenos Aires Grain Exchange.

DAIRY HIGHLIGHTS:

• Spot Cheese was unchanged with no loads traded today. This comes after 8 days in a row of trading lower. Spot whey gained a penny to trade back above $0.40/lb.
• Class III futures saw sizeable action thanks to product futures trading higher. The August through December 2024 Class III futures contracts closed into new contract highs today.
• Spot butter was able to finish out the week strong by gaining 6 cents on the day closing at $3.09/lb. Spot powder gained half a cent to close at $1.1675/lb.
• Class IV futures saw light volume but was still able to see improvements in a few futures contracts. Class IV products helped to support the Class IV market today.

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Author

Amanda Brill