CORN HIGHLIGHTS:

• Corn futures fought off early-session weakness to close slightly higher on the day. Strong demand for old-crop supplies helped support the market despite weakness in the wheat complex to start the week. December corn gained 1 ¼ cents to 537 ¾, while March corn added 1 cent to 552 ¼.
• The USDA released its weekly Export Inspections report Monday morning. For the week ending August 27, corn export inspections reached 1.496 MMT (58.9 mb), above market expectations. With the 2025/26 marketing year ending August 31, total corn inspections are running 25% above last year, reflecting strong demand to close out the marketing year.
• As of August 27, total corn inspections for the marketing year have reached 3.299 BB. The USDA is forecasting corn exported for 2025-26 to reach 3.400 BB. With the strong totals, the USDA may need to increase old crop export demand on the September 11 WASDE report.
• The EPA is scheduled to make a ruling on small refinery exemptions for quotas for 2025. A reduction in refinery exemptions may signal a reduction in the blending quotas established earlier in the year. Reduced quotas could limit biofuel demand, impacting ethanol used.
• Friday’s Commitment of Traders report showed managed hedge funds net long 376,500 corn contracts. This position is a record net long for this time of the year, and challenging the record net long established in 2021.

SOYBEAN HIGHLIGHTS:

• Soybeans were mixed to end the day in bear spreading action with priced unchanged in the front month but posting gains in the deferred contracts. Funds were likely taking some end of the month profits today, and lower wheat prices weighed on the entire grain complex. Both things may have capped further gains today as bullish sentiment continues.
• November soybeans were unchanged at $12.88 and March gained ½ cent to $13.03-1/4. Both contracts made new contract highs overnight. There were zero deliveries against September soybeans. October soybean meal lost $3.90 to $338.60 and October soybean oil gained 0.01 cents to 70.83 cents, and there were 800 deliveries against the September contract. Crude oil is up $2.54 to $85.92.
• Today’s export inspections report came in below expectations as no cargoes were listed for shipment to China. Soybean inspections totaled 9.2 million bushels for the week ending August 27 which put total inspections for 25/26 at 1.497 bb, which is down 18% from last year.
• Friday’s CFTC report saw funds as buyers of soybeans as of August 25. They bought 46,592 contracts which increased their net long position to 198,254 contracts. They sold 9,795 contracts of bean oil leaving them long 88,442 contracts and bought 14,012 contracts of bean meal leaving them long 97,036 contracts.

WHEAT HIGHLIGHTS:

• The wheat market suffered losses today, albeit well off of session lows. Early reports that Turkey may help with reviving safe Black Sea shipping led to an initial sharp drop in wheat futures, both in the US market and on the MATIF exchange. This news also likely triggered profit taking after wheat had reached new highs last Friday. In the September contract, Chicago closed 10-1/2 cents lower at 756-1/2, Kansas City was down 7-1/2 cents at 820-1/4, and MIAX lost 6 cents to 739-1/4.
• Weekly wheat export inspections amounted to 15.8 mb, which brings total 26/27 inspections to 176 mb, down 28% from last year. Inspections are currently running below the USDA’s estimated pace; total exports are forecasted at 775 mb, down 15% from last year.
• Energy prices rebounded with spot crude oil futures up about $2.50/barrel this afternoon. This is tied to new attacks between the US and Iran, and likely helped limit losses in the wheat market today.
• According to APK-Inform, Ukraine’s weekly exports of wheat, corn, and barley totaled 240,900 mt for the week ended August 26. That represents an increase of 28%, with wheat accounting for 173,300 mt of that total. APK-Inform did not offer a reason for the increase in exports, though Ukraine has been shifting shipments to Danube ports after the recent increase in attacks.

DAIRY HIGHLIGHTS:

• Class III futures were mixed on Monday as the spot trade for products was quiet. September futures lost 6 cents to close at $16.35.
• Both cheese and whey were unchanged from Friday at $1.52375/lb and $0.7375/lb respectively.
• Class IV milk futures were also mixed with no large changes in either direction. September futures closed 6 cents higher to $19.40.
• Spot butter remains weaker losing 1.25 cents to finish at $1.45/lb. Powder extends its rally, improving half a penny to $1.87/lb.

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Author

John Heinberg