CORN HIGHLIGHTS:

• Corn market finished higher to end the week as general buying strength in the grain market lifted corn futures prices. September corn gained 3 ½ cents to 444 ¾, while December corn added3 ½ cents to 467 ½.  For the week, September corn gained 5 ¼ cents and December 6 ½ cents higher. This was the third consecutive week of weekly gains in corn futures.
• Strength in wheat, fueled by escalating Russia-Ukraine tensions, spilled over into the corn market through short covering and renewed buying interest. Headlines from the Black Sea region will remain a key driver to start next week.
• European corn crops continue to struggle in the face over a very hot and dry weather pattern.  Germany reduced expectations for corn production. French corn crop ratings have plummeted. The French corn crop was rated 90% G/E in mid-May to a rating of 41% G/E this week.
• South America corn harvest has been progressing. The record Argentina corn crop was near 75% complete, and the Brazil crop nearing 39% harvest. Fresh bushels in the global supply pipeline have limited corn export sales in the past few weeks.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher as a result of sharply higher soybean oil and crude oil. August soybeans gained 9-1/2 cents to $12.04-1/2 which took back all of yesterday’s losses. November soybeans gained 8 cents to $12.03, August soybean meal lost $2.70 to $320.20, and August soybean oil gained 2.38 cents to 74.81 cents as crude oil is up $3.19 to $82.14 a barrel.
• New U.S. 25% duties on Brazilian ethanol helped push crude oil above $82 per barrel, providing additional support to soybean oil. Strong biofuel demand and robust crush margins continue to underpin the soybean complex.
• NOAA’s latest 30-day forecast calls for near-normal temperatures and slightly above-average rainfall across much of the Corn Belt. Increasing rain chances could limit additional upside if favorable conditions continue.
• NOAA’s latest 30-day forecast calls for near-normal temperatures and slightly above-average rainfall across much of the Corn Belt. Increasing rain chances could limit additional upside if favorable conditions continue. For the week, August soybeans gained 12-3/4 cents which follows last week’s gains of 55-1/2 cents. November soybeans gained 12-1/4 cents and posted its highest close since January 2023 for the contract. August soybean meal lost $0.20 for the week while August soybean oil gained 4.35 cents.

WHEAT HIGHLIGHTS:

• The wheat market was led higher today by double-digit gains in the KC class, as Black Sea tensions continue to escalate. Additionally, global concerns about smaller crops are providing underlying support. In the September contract, Chicago gained 8 cents to 682-3/4, Kansas City rallied 15-3/4 cents to 732-1/4, and MIAX climbed 6-1/2 cents to 691-3/4.
• According to the Buenos Aires Grain Exchange, Argentina’s wheat planting is now 92% complete. Additionally, the crop was rated 70% good to excellent, far exceeding the 51% rating at this time a year ago.
• FranceAgriMer has reported the French soft wheat harvest to have reached 92%, which is well above last year’s 66% pace. Furthermore, they added that the crop was rated at 65% good or very good, which is unchanged from the week before.
• According to the International Grains Council, global 26/27 grain production is forecasted at 2.422 billion mt. This would be 2.7% lower than the record 2.490 billion mt harvest last year. While wheat does play a part in this update, this drop is said to be largely caused by lower European corn production after experiencing a heat wave this season.
• The Grain Industry Association of Western Australia is expecting their state’s wheat production to fall 30% compared with last year, due anticipated hot and dry conditions in the next few months. They estimate the crop at 9.5 mmt, versus 13.3 mmt in 2025. Overall, grain production is also expected to decline in Western Australia, which is the nation’s top state for grain exports.

DAIRY HIGHLIGHTS:

• Class III futures were up once again led by a higher cheese trade. August added another 20 cents to close at $17.82.
• Spot cheese moved 1.875 cents higher to close out the week at $1.62/lb. Whey was unchanged at $0.6950/lb.
• Class IV was relatively steady with just the August and September contracts seeing trading action. August futures improved 3 cents to $17.57.
• Spot butter improved 0.25 cents to finish out the week at $1.59/lb. Powder continues to fall, losing 025 cents to go home at $1.47/lb.

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Author

John Heinberg