CORN HIGHLIGHTS:

• A sharp rally in wheat futures lifted corn prices Wednesday, with December corn posting its highest close since June 1. September corn gained 9 cents to 447 ½, and December also added 9 cents to 469 ½.
• An escalation in the war between Russia and the Ukraine over the past few days has impacted shipping lines for both Russia and Ukraine wheat to the global market. The strength in the wheat market has triggered short covering in the corn market, supporting prices.
• Weekly ethanol production slumped to a 10-week low of 306 million gallons last week. This was below market expectations and down 4% from a year ago. A total of 102 mb of corn was used last week in ethanol production, slightly below the pace needed to reach the USDA target for the marketing year.
• The USDA will release the Weekly Export Sales Report on Thursday morning. The corn market has not seen a published corn sale since June 23 as competition for South America supplies has slowed US export sales. Last week’s export sales for corn were below expectation with a combined total of 968,000 MT for both old and new crop sales.
• Forecasts call for warm, dry conditions through the end of the week, followed by cooler temperatures and improving rainfall chances later this month. Traders will be watching closely to see if those wetter forecasts verify.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher but seem to be meeting some resistance around the $12.05 mark for August futures. August soybeans gained 9-1/2 cents to 1202-1/4 while November gained 10-3/4 cents to 1201-3/4. August soybean meal gained $1.50 to $318.90 and August soybean oil gained 0.52 cents to 72.92 cents as crude oil moved higher by 45 cents.
• The NOPA crush report was released today and showed 214.34 million bushels crushed in June which exceeded trade expectations. This was up 2.7% from the 208.79 mb crushed in May and up 15.7% from June 2025. Strong crush demand has been a driving factor for high soybean prices.
• Recent gains have been fueled by a hot and dry 1–2 week forecast, but cooler temperatures are expected to arrive this weekend. Going forward, traders will be closely watching rainfall forecasts as soybeans enter a critical stage of development.
• Yesterday, CONAB released its July estimates for Brazilian soybean production. Production estimates increased to 180.57 mmt which was up from 180.23 mmt in June and 171.5 mmt at this time last year. Ending stocks were reduced to 8.79 mmt as a result of higher exports.

WHEAT HIGHLIGHTS:

• It was a banner day in the wheat market, with double-digit gains in all three classes. A technical breakout to the upside was likely triggered by increased tensions in the Black Sea region. It is being reported that more than 100 Russian ships have been attacked by Ukrainian drones over the past week, leading to the shutdown of key trade routes. In the September contract, Chicago gained 32-1/2 cents to 677-1/2, Kansas City rallied 42 cents to 720, and MIAX climbed 25-1/4 cents to 683-1/4.
• A gap higher and gain of 15 Euros/mt in September Paris milling wheat futures also helped the US wheat market today. Additionally, the US Dollar index saw another big drop this session, which was supportive too; a lower Dollar makes US wheat more attractive to importing countries.
• SovEcon and IKAR have both reduced their Russian wheat export estimate for the month of July, largely due to shipping restrictions. Both analysts are at 2 mmt or just below, with IKAR having seen at 20% cut from their previous estimate, and SovEcon a 13% cut. This comes just before the August-October timeframe when their exports typically peak at about 4-6 mmt per month.
• The French Farm Ministry is forecasting their nation’s 2026 soft wheat production at 32 mmt, which would be a reduction of 4% from last year and 2% under the five-year average. This is despite acreage having increased by 3%. This emphasizes the significant drop in productivity, with an estimated 7% decline in yields.
• According to the European Commission, EU soft wheat exports fell 62% year over year in the first week of the export season (which began on July 1). An estimated 214,904 mt were shipped during this period. Total exports of all grain also declined by 64% year over year.

DAIRY HIGHLIGHTS:

• Class III milk futures finished the session mixed, with the September contract gaining 8 cents to settle at $17.44.
• Class IV milk futures saw limited trading activity, with the September contract slipping 9 cents to settle at $17.91.
• Spot cheese declined 0.50 cents to settle at $1.5975/lb, while spot whey was unchanged at $0.70/lb.
• Spot butter fell 5.50 cents to close at $1.5850/lb, while spot powder declined 2.75 cents to settle at $1.5000/lb.

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Author

Amanda Brill