The CME and Total Farm Marketing Offices will be closed Friday, July 4, in Observance of Independence Day

CORN HIGHLIGHTS:

• Corn futures posted strong gains Wednesday, supported by short covering and technical buying as traders squared positions ahead of the long weekend.
• Weekly ethanol production dipped to 1.076 million barrels per day, down slightly from the prior week, but still enough to keep corn usage on pace to meet USDA’s annual target.
• U.S. corn is regaining competitiveness on the global market as a weaker dollar and lower prices improve its value relative to South American offers. Brazil’s slower-than-usual harvest is also offering modest support.
• StoneX raised their production forecast for the Brazil corn crop to 136.1 MMT, up 2.1 MMT from their last forecast.  USDA is still holding a 130 MMT projection.
• Thursday’s USDA weekly export sales report is expected to show corn sales ranging from 400,000–1.0 MMT (old crop) and 500,000–900,000 MT (new crop), following 1.46 MMT in total sales last week.

SOYBEAN HIGHLIGHTS:

• Soybean futures closed sharply higher Wednesday, lifted by strong crush data, short covering ahead of the holiday weekend, and trade optimism following President Trump’s announcement of a U.S.-Vietnam deal. Soybean meal and oil also posted solid gains.
• The USDA released its monthly oilseed report which showed soybean crushings for May at 203.7 million bushels. This was up 6.3% from the same period last year and up from the previous month. Crude oil production was 6.5% higher.
• The new U.S.-Vietnam trade agreement allows U.S. goods to enter Vietnam tariff-free, while Vietnamese goods face a 20% tariff into the U.S. — a potential boost for U.S. ag exports.
• In India, palm oil imports shot higher by 61% to hit an 11-month high for the month of June because of lower domestic inventories. This is bullish for all veg oils.

WHEAT HIGHLIGHTS:

• Wheat posted double digit gains across the board, likely following soybeans higher after rumors that China is looking to buy beans from the U.S. This may have caused some short covering in the grain markets. A weaker U.S. Dollar and earlier USDA cuts to harvested acreage also supported the rally.
•  Forecasts call for a Canadian storm system next week, but rainfall may be patchy, potentially missing key areas in the southern and eastern Prairies. This dryness could lend support to spring wheat prices.
• Argentina exported a record 23.5 MMT of grain in June, rushing to beat a tax hike on corn and soybean exports effective July 1. Wheat exports were not subject to the change, which may pressure prices going forward.
• President Trump announced a trade agreement with Vietnam Wednesday. While details remain limited, broader trade optimism added support to grain markets.

DAIRY HIGHLIGHTS:

• Nearby Class III futures lost double digits on Wednesday as the market worries the recent cheese rally may have fizzled out.
• Spot cheese blocks lost 4.75c on 4 loads traded to $1.6750/lb. Barrels fell 0.50c to $1.72/lb on 3 loads traded. This snaps a 5-day up streak.
• Spot butter fell 2.25c to $2.58/lb. This was the first red day in 4 sessions.
• Spot whey tacked on yet another penny, closing at its highest price since early February.
• June milk is off the board, so now July moves into the front month while August is the second month. June settled at $18.82 (III) and $18.30 (IV).

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Author

Amanda Brill