CORN HIGHLIGHTS:

• Corn futures posted strong gains on Wednesday as the wheat market saw aggressive buying strength, and supply concerns helped lift the corn market. September corn gained 13 ½ cents to 514, and December corn gained 13 cents to 536 ½.
• Wheat saw aggressive buying, with front-month SRW contracts trading limit-up during the session. Russia-Ukraine cease-fire talks broke down, while Russia threatened to increase attacks on Ukrainian grain infrastructure. SRW futures will have expanded 70-cent limits Thursday.
• Warm and wind weather across the northern plains could limit grain fill and speed maturity of a stressed corn crop in those regions.
• Weekly ethanol production increased to 1.112 million barrels per day, exceeding market expectations. Strong margins continue to support robust ethanol production and corn demand.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day sharply higher along with the rest of the grain complex as strong export sales and concerns over final yields cause funds to continue adding to their already sizeable net long position. Soybean meal was the leader today while soybean oil was brought slightly lower due to a decline in crude oil.
• September soybeans gained 26-1/4 cents to 1254-1/4 while November gained 28-1/4 cents to 1266. November soybeans took out the July high to make a new contract high. September soybean meal gained $8.40 to $328.70 but has not made a new contract high, and September soybean oil lost 0.30 cents to 67.22 cents. October crude oil is down 35 cents to $82.01.
• This morning, private exporters reported sales of 333,000 metric tons of soybeans for delivery to China during the 2026/2027 marketing year. China has been a consistent buyer of US soybeans and is likely over 35% complete with purchases to meet their commitment of buying 25 mmt this marketing year.
• There are concerns in South America that Brazil may not have enough soybeans to cover purchases needed by China. China has reportedly turned to Argentina for a portion of their South American needs, but a supply issue in Brazil could cause China to exceed their U.S. purchase commitment.

WHEAT HIGHLIGHTS:

• Wheat closed sharply higher, with front-month SRW contracts reaching the 45-cent daily limit and triggering expanded limits for tomorrow. Additional Black Sea war premium fueled the rally as Russia reportedly considers further missile attacks on Kyiv after peace negotiations reached a stalemate. In the September contract, Chicago rallied 45 cents to 730-1/2, Kansas City climbed 37-1/2 cents to 792, and MIAX gained 27-1/2 cents to 721-1/2.
• Reportedly, repairing the damaged grain infrastructure at the Russian port of Novorossiysk could take between 1-4 months. This could further reduce the amount of wheat coming out of the Black Sea. In related news, Russia is also said to be considering lifting their grain export tax due to logistics issues.
• Dry conditions in parts of Ukraine are reducing soil moisture ahead of winter wheat planting, creating additional concerns for crop establishment.
• Managed funds are estimated to have purchased about 3,000 contracts of Chicago wheat yesterday. Today’s break into new contract highs likely triggered significant additional technical and fund buying, despite the market having already become overbought.

DAIRY HIGHLIGHTS:

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Author

John Heinberg