CORN HIGHLIGHTS:

• Despite some buying support in the soybean market, selling pressure remains in the corn market as September First Notice Day is on Friday this week, and producers are likely pricing September basis contracts. Most of those contracts will likely need to be priced or rolled out by the middle of the week.
• With the selling pressure, December corn printed a new contract low during the session, pushing through support levels established since early August. The weakened technical picture will keep the possibility of additional follow-through selling going into tomorrow’s session.
• Weekly corn export inspections were at the bottom end of trade expectations. Last week, US exporters shipped 35.2 mb (894,295mt). This brings YTD inspections to 2.009 billion bushels, up 39% from last year with the USDA targeting a 35% increase.
• The forecast for drier weather could have an impact on logistics in moving corn to the Gulf of Mexico ports. The corn market is concerned that Mississippi River levels in the Memphis area are dropping and could be at a stage where draft restrictions will be needed on barge traffic by Early September.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher to start the week but initially opened lower towards the bottom of their trading range. Soybeans have been consolidating for the past two weeks with the low end of the range in November at 955 and the high end at 985. Both soybean meal and oil ended the day higher with bean oil getting support from higher crude and palm oil.
• The Pro Farmer crop tour found solid soybean yield potential, that could put the crop in record territory. Estimates for the tour’s final soybean yield is 54.9 bpa, which if realized would be up from the USDA’s estimate of 53.2 bpa. Production was also estimated at 4.74 billion bushels, up from the USDA’s current projection of 4.589 billion.
• Today’s soybean export inspections came in at 15 million bushels, which was in line with analyst expectations and put year to date inspections at 1.624 billion, which is down 15% from last year. China picked up an estimated 3 million bushels of soybeans.
• Friday’s CFTC report showed funds as sellers of soybeans. They sold an additional 8,311 contracts which put them net short 182,758 contracts, near their record short position from mid-July of 185,750 contracts.

WHEAT HIGHLIGHTS:

• Wheat ended the session with mixed results: Chicago and Minneapolis saw losses, while Kansas City posted gains. Bull spreading was observed in Kansas City contracts, likely due to fund profit-taking after this class hit new contract lows during the session. Additionally, spot month Chicago futures fell below five dollars for the first time in four years.
• US wheat export inspections totaled 20 million bushels, hitting the upper end of expectations. Year-to-date inspections now stand at 189 mb, which is a 28% increase from last year and exceeds the USDA’s projected 15% increase for the year.
• Russia’s wheat export values ended last week at $216 per metric ton, according to IKAR, marking a two-dollar decline from the previous week. Additionally, SovEcon reported that Russia exported 1.16 mmt of grain last week, with wheat accounting for 980,000 mt of that total.
• The European Union’s Monitoring Agricultural Resources unit has lowered its estimate for EU soft wheat yields to 6.68 mt per hectare, down from 5.87 mt per hectare last month. This adjustment is largely due to concerns over both the quantity and quality of crops in France and Germany. Despite the French wheat harvest now being 100% complete and the poor crop conditions, Paris milling wheat futures hit another new contract low today.

DAIRY HIGHLIGHTS:

• Class III milk futures on Monday saw three contracts see limit moves higher. September, October, and November futures were all 75 cents higher with the October contract reaching $23.05.
• Spot cheese had an impressive day with blocks gaining 10.25 cents while barrels rose 15 cents. Spot cheese now sits at $2.1950/lb. Whey was unchanged at $0.5650/lb.
• Class IV milk was relatively uneventful on light volume trading but still saw the November contract trade into a new contract high of $22.60.
• Spot butter improved 4.50 cents to $3.1750/lb while powder tacked on 1.50 cents to close at $1.2975/lb.

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Author

Amanda Brill