CORN HIGHLIGHTS:

• The corn market paused its recent push higher on Thursday, with futures closing moderately lower despite continued strength in both the soybean and wheat markets. September corn lost 3 ¾ cents to 510 ¼, while December futures fell 3 cents to 533 ½.
• September corn hits first notice day on Monday next week. This is a typical window of weakness in the corn market as basis contracts and old crop bushel push into the cash market pressuring prices.
• Weekly Corn export sales were uneventful on Thursday morning’s Weekly export sale report. For the week ending August 20, old crop corn sales were a market year low at 31,000 MT (1.2 mb), and new crop sales were 1,066 MT (42.0 mb). Both were within market expectations. The 2025-26 marketing year ends on August 31.
• New crop corn export sales have reached a total of 12.457 MMT (526.7 mb) for the 2026-27 marketing year. This is down 33% from last year at a deficit 6.32 MMT (249 mb) below last year’s totals.
• The White House has pushed for regulations to allow smaller refinery exemptions to pass, in an attempt to lower fuel costs. If the impact of additional exemptions could short-term impact the need for blending biofuels, which could impact corn and soybean demand.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher, supported by solid export sales and continued purchases from China. Higher crude oil prices also provided support to the market and soybean oil. Funds have remained consistent buyers of soybeans, adding approximately 31,000 contracts to their net-long position over the past five sessions and moving closer to a record-long position.
• September soybeans gained 2-1/4 cents to $12.56-1/2 while November gained 2 cents to $12.68 and made a new contract high. September soybean meal gained $1.50 to $330.20 and September soybean oil gained 0.78 cents to 68.00. All long September soy contracts should be exited by end of day tomorrow to avoid delivery.
• Today’s export sales were within trade estimates for soybeans with the USDA reporting an increase of 2.7 million bushels for 25/26 and an increase of 91.1 million bushels for 26/27. Top buyers were China, unknown destinations, and Egypt. Last week’s export shipments of 16.6 mb were below the 19.3 mb needed each week to meet USDA estimates.
• 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 with double-digit gains across all three classes. However, the strength was more limited compared to yesterday’s rally, despite winter wheat futures trading with expanded 70-cent limits. Managed funds were estimated to have purchased 18,000 contracts of SRW wheat during yesterday’s surge, with additional buying likely today. In the September contract, Chicago gained 12-1/4 cents to 742-3/4, Kansas City Was up 11-1/2 cents at 803-1/2, and MIAX rallied 11-1/4 cents to 732-3/4.
• The USDA reported an increase of 14.8 mb of wheat export sales for 26/27. Shipments last week reached 15.7 mb, which exceeded the 15.0 mb pace needed per week to reach their 775 mb export goal. Wheat export commitments for 26/27 now stand at 304 mb, down 32% from last year.
• Egypt, the world’s largest wheat importer, is reported to have recently purchased 2 cargoes of French wheat. Typically, they import 80% of their wheat from Russia and Ukraine, so this signifies the extent of the problems with logistics in the Black Sea. In related news, it is said that Sudan has purchased French wheat for the first time in 18 years.
• Argus is estimating the French soft wheat crop production at 30.8 mmt, a decline of 7.6% year over year. Meanwhile, they forecast total EU wheat production at 161.5 mmt, representing a decline of 8.7% year over year. Additionally, they think French wheat exports will be limited to 6 mmt or less in the 26/27 season.
• According to a government estimate, South Africa will harvest the smallest wheat crop this year, since 2019. Production is expected to decline 7.5% compared to last year, at 1.76 mmt. The Iran war is said to have caused issues with pricing of fuel and fertilizer this season. Additionally, some areas have experienced flooding that caused planting difficulties.

DAIRY HIGHLIGHTS:

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Author

Amanda Brill