CORN HIGHLIGHTS:

• The corn market broke the 7-session selling streak with a strong close on Thursday. Strong buying in both corn and soybeans dominated the day as the oversold corn market was due for a short covering rally. Follow through from today’s price strength will be key. With today’s gains, December corn futures are now trading slightly higher on the week.
• The row crop markets may have been responding to headline news regarding a potential tax package that has been proposed in Brazil. With this package, the Brazilian government would limit/end the tax credits over a very large number of operations, including grain trading and freight. Removal of these credits would likely increase the cost of Brazil ag commodities, possibly bringing additional demand to the US market. This is a proposed bill, but a news item that may need to be watched.
• Weekly export sales for corn were very supportive on Thursday morning. US exporters sold 46.5 mb (1.181 mmt) of old crop corn and 4.5 mb (113,000 mt) of new crop corn last week. Total corn sales have reached 2.018 billion bushels in 23/24 and are up 34% from a year ago.
• The USDA announced a flash sale of corn this morning. Unknown destinations bought 6.0 mb (152,000 mt) for the 23/24 marketing year as US corn prices stay competitive on the global market.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day significantly higher after 7 consecutively lower closes. July soybeans closed right at the 100-day moving average at 1200 and traded above it briefly. Some of today’s trade may have been due to short covering by the funds who have added approximately 30,000 contracts to their short position over the past five days, but higher soybean oil and meal were supportive.
• Today’s export sales report was soft for soybeans and showed an increase of 7.0 mb in soybean sales for 23/24 and an increase of 2.7 mb for 24/25. This was on the lower range of trade expectations and puts soybean sales down 15% from the previous year. Last week’s shipments of 14.3 mb were above the 12.9 mb needed each week to achieve the USDA’s export estimate of 1.700 billion bushels in 23/24. Primary destinations were to China, Mexico, and Turkey.
• Brazilian soybean exports are expected to reach 12.08 mmt in June which would compare with 13.84 mmt in the same period a year ago. Exports of soybean meal are expected to drop slightly as well. The USDA may cut its production estimate as a result of the flooding in Rio Grande do Sul.
• Some support today may also have come from Brazil where a tax package that was provisionally enacted is expected to raise farm taxes in the country. As a result, many Brazilian farmers are reportedly holding onto both corn and soybeans rather than making cash sales as they wait to see if the tax plan is approved by Congress.

WHEAT HIGHLIGHTS:

• The wheat complex settled mixed after a volatile two-sided trade. Chicago contracts led the decline, pulling Minneapolis lower, while KC managed to hold onto minor gains. Lower Matif wheat futures likely contributed to the negative sentiment. Both July KC and July Minneapolis encountered overhead resistance near their 20-day moving averages before selling off.
• Today the USDA reported export sales for the week ending May 30. The 23/24 marketing year saw more net cancellations than expected, totaling 8.4 mb, which brings cumulative net sales to 685 mb. New sales for 24/25 came in higher than expected at 22.7 mb. Total weekly exports came in at 16.5 mb with primary destinations being Mexico, Philippines, South Korea, Japan, and Taiwan.
• A favorable start to the US spring wheat crop and Canada’s wheat crop added upward resistance to prices, along with lower Australian wheat futures on talk of rain in the dry areas of western Australia.
• Winter wheat planting may begin soon in Brazil but wet conditions and damage to infrastructure may keep progress on the slow side. In Argentina, dry conditions that have been helpful to soybean and corn harvest have not helped with getting the winter wheat crop planted and established.

DAIRY HIGHLIGHTS:

• July Class III futures fell 24 cents today after yesterday’s near limit down move, closing at $19.91. The July-December average finished at $19.81.
• Spot cheese fell a quarter-cent with lower blocks and higher barrels, but it does enter Friday up 2.50 cents on the week. Whey was 1.25 cents higher to a $0.4525/lb close.
• On the Class IV side, futures were under pressure with June through December down 2 to 16 cents.
• Spot butter has been erratic this week and fell 4.50 cents today, while powder lost a half-cent.

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Author

Amanda Brill