CORN HIGHLIGHTS:

• Another quiet trading day in the corn market as futures finished mixed for the day as the market looks for fresh news. December corn had a 4-cent trading range on the day as prices consolidated for the second straight session.
• The front end of the corn market has been supported by a counter-seasonal uptick in demand as corn export inspections have run ahead of averages the past few weeks. This week’s export shipments at 1.116 mmt were double last year’s total for the week as the market works through old crop supplies before harvest brings fresh supplies into the pipeline.
• The USDA will release weekly exports sales on tomorrow morning. Expectations are for old crop sales to range from 100,000 – 300,000 mt and new crop sales from 500,000 –1.025 mmt. The current marketing year ends on August 31, so the market’s focus will be on new crop corn sales.
• The Pro Farmer crop tour published yield results for Indiana and Nebraska yesterday. Indiana has a yield potential of 187.54 bpa and Nebraska was 173.25 bpa. Both numbers were above last year’s tour levels. The tour moved into Western Iowa and Western Illinois today.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher as prices consolidated and the November contract closed 26 ½ cents off its low from Friday. Futures saw support today from more announced export sales and higher trade in both soybean meal and oil. So far this week, November is trading 25 cents higher and has seen additional support from a short-term hot and dry forecast.
• This morning, the USDA reported private export sales totaling 132,000 metric tons of soybeans for delivery to China during the 24/25 marketing year and 121,000 metric tons of soybeans for delivery to unknown destinations during the 24/25 marketing year. This follows sales of 371,392 mt from yesterday.
• The warmer and drier forecast over the next 10 days has caused NOAA to issue a drought warning for the southern Plains which raises 10% of total US soybean production. While this may cause crop ratings to fall slightly, the crop is still set up for large yields, and production should not be impacted too much.
• The Pro Farmer crop tour was in Indiana and Nebraska yesterday. In Indiana, soybean pod counts are averaging 1,379 pods per 3×3 foot square which compares to 1,310 pods last year and the 3-year average of 1,238.6. In Nebraska, pod counts averaged 1,172 according to 376 samples and is up from 1,160 pods last year and the 3-year average of 1,150.

WHEAT HIGHLIGHTS:

• All three US wheat classes closed lower on the day, led by Chicago futures. Weakness came despite another move downward in the US Dollar, possibly due to weakening global wheat values. After a few days of consolidation, Paris milling wheat futures broke to the downside, with the front month September contract trading to the lowest level since early March.
• Ukrainian grain exports for the 24/25 season have reached 6 mmt as of August 21, up from 3.6 mmt during the same period last year. Of that total, 2.8 mmt was said to be wheat, followed by 2.2 mmt of corn and 1 mmt of barley.
• Argentina has quarantined a grain cargo ship on the Parana River due to a suspected case of monkeypox in a crew member. Although the vessel was preparing to load soy, this incident raises broader concerns about the logistics of grain shipments. Last week, the World Health Organization declared monkeypox a global public health emergency.
• Weather in Australia has been mostly favorable in the western and southern regions, with scattered showers over the weekend boosting soil moisture levels. More rain is expected this week in these areas, while the northern regions may remain drier. Overall, warm temperatures this week should support wheat crop development.

DAIRY HIGHLIGHTS:

• The Class III second month futures contract September gained 11 cents and closed at $22.61, while October gained 17 cents to close at $22.85.
• Spot cheese held strong, gaining another 6.25 cents to close at $2.18875/lb. and spot whey gained 1 cent to close at $0.5675/lb.
• Class IV futures made some gains in later month contracts with November gaining 12 cents to close at $22.55 and December gaining 20 cents to close at $21.53.
• Spot butter lost 1 cent to close at $3.16/lb. Spot powder set a new high for the year gaining 0.25 cents to close at $1.2850/lb.

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Author

Amanda Brill