CORN HIGHLIGHTS:

• Corn gains remained limited on Friday, consolidating near the top end of the week’s range despite strong buying in soybeans and wheat. September corn futures gained 1 ¾ cents to 512, and December futures added 3 cents to 536 ½. For the week, December corn futures gained 28 cents, and continuous charts posted its highest weekly close since July 2023.
• September corn reaches first notice day Monday, marking a seasonal window when the market can face additional pressure as basis contracts and old-crop bushels move into the cash market. In addition, traders hold long September futures need to exit those positions on Friday or risk the chance of delivery on Monday.
• August has been exceptionally strong for December corn futures. Fueled by weather, speculation on decreased production and strength in the wheat market, December futures are trading 72 ½ cents higher for the month of August with one trading day to go.
• 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 of 6.32 MMT (249 mb) below last year’s totals. If the USDA lowers corn production on the September WASDE report, an adjustment lower in export demand could be a possibility.
• Fed Reserve Chair Kevin Warsh discussed a tone of being stronger against inflation at the Jackson Hole symposium on Friday. Continued dollar strength could become a headwind for agricultural markets, particularly if it begins to weigh on U.S. export competitiveness.

SOYBEAN HIGHLIGHTS:

• The train kept rolling Friday, with wheat closing sharply higher across the board despite a strong rally in the U.S. dollar. Continued fund and speculative buying appears to be driving the rally as the Russia-Ukraine war escalates. In the September contract, Chicago rallied 24-1/4 cents to 767, Kansas City climbed 24-1/4 to 827-3/4, and MIAX gained 12-1/2 cents to 745-1/4.
• U.S. spring wheat drought conditions are worsening rapidly. USDA estimates that 80% of spring wheat acres were experiencing drought as of August 25, up 17 percentage points from the prior week and compared with just 13% last year. Winter wheat areas in drought also increased 2 points to 56%, an unfavorable setup heading into fall planting.
• According to the Buenos Aires Grain Exchange, Argentina’s wheat crop for the 26/27 season is now 100% planted, as of August 27. The sown area estimate was unchanged at 6.5 million hectares, which is down 0.2 million from last year’s planted area.
• The Ukrainian agriculture minister is expecting a smaller wheat planted area this fall. They stated that this is unlikely to affect the domestic market. However, it would likely reduce exports, which are already experiencing issues due to the war and closure of Black Sea shipping routes.

WHEAT HIGHLIGHTS:

• The train kept rolling Friday, with wheat closing sharply higher across the board despite a strong rally in the U.S. dollar. Continued fund and speculative buying appears to be driving the rally as the Russia-Ukraine war escalates. In the September contract, Chicago rallied 24-1/4 cents to 767, Kansas City climbed 24-1/4 to 827-3/4, and MIAX gained 12-1/2 cents to 745-1/4.
• U.S. spring wheat drought conditions are worsening rapidly. USDA estimates that 80% of spring wheat acres were experiencing drought as of August 25, up 17 percentage points from the prior week and compared with just 13% last year. Winter wheat areas in drought also increased 2 points to 56%, an unfavorable setup heading into fall planting.
• According to the Buenos Aires Grain Exchange, Argentina’s wheat crop for the 26/27 season is now 100% planted, as of August 27. The sown area estimate was unchanged at 6.5 million hectares, which is down 0.2 million from last year’s planted area.
• The Ukrainian agriculture minister is expecting a smaller wheat planted area this fall. They stated that this is unlikely to affect the domestic market. However, it would likely reduce exports, which are already experiencing issues due to the war and closure of Black Sea shipping routes.

DAIRY HIGHLIGHTS:

• Class III futures finished out the week in the green thanks to a stronger whey trade. September futures posted a gain of 8 cents to close at $16.41.
• Spot cheese closed 1.125 cents lower to $1.52375/lb while whey tacked on 0.75 cents to close out the week at $0.7375/lb.
• Class IV futures continue to find momentum as powder rises. September futures added 14 cents to finish at $19.34.
• Spot butter improved just 0.25 cents to close at $1.4625/lb, while powder added 1.50 cents to go home at $1.8650/lb.

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Author

Brandon Doherty