CORN HIGHLIGHTS:

• Selling pressure returned to the corn market on Friday, capping off a negative week. December corn posted a new low in the current price move, while July corn reversed lower after once again failing to hold above the 450 level. The weak technical close leaves the door open for additional selling pressure to start next week. For the week, July corn ended 6 ¼ cents lower, marking the fifth consecutive weekly loss.
• Renewed discussions of a potential resolution to the Russia-Ukraine conflict weighed on both corn and wheat futures. Speculation around a possible ceasefire raised concerns about increased grain exports and competition from the Black Sea region.
• Some beneficial rainfall fell over the northern parts of the Corn Belt on Thursday. Amounts and coverage in some areas was disappointing, but rainfall is forecasted again into the weekend. That potential rainfall and cooler temperatures pressured the corn market.
• Rumors of a reduced renewable fuel blending mandate added longer-term demand concerns for corn-based ethanol. While the market had been expecting 2026 blending levels near 5.275 billion gallons, reports now suggest a possible reduction to 4.650 billion gallons. Although still above last year’s levels, the number falls short of trade expectations and has pressured futures.
• June corn options expired on Friday, introducing additional volatility. Expiration tends to steer prices toward areas of heavy open interest and can trigger either buying or selling depending on price action relative to strike levels.

SOYBEAN HIGHLIGHTS:

• Soybeans were mixed to end the week with the front months slightly lower and new crop contracts ending higher in bear spreading action. July soybeans found support after yesterday’s sharp sell-off at the 100 and 200-day moving averages, which have converged at $10.47. Both soybean meal and oil ended the day lower.
• Soybean oil has been the downside leader in the soy complex over the past two sessions. Pressure stemmed from comments by EPA Administrator Lee Zeldin, who confirmed that the agency will begin a new rulemaking process over the coming months to revise renewable volume obligations (RVOs). The delay has sparked concern that final biofuel mandates could come in below the expected 4.6 billion gallons, though that remains speculative.
• NOPA soybean crush for the month of April was shown at 190.226 million bushels, which was down 2.2% from March at 194.51 mb but was above trade estimates. Crush was well above last year at this time of 169.43 mb in April.
• For the week, July soybeans lost 1-3/4 cents at $10.50 while November soybeans gained 5 cents to $10.35-1/2. July soybean meal lost $2.20 to $291.90 and July soybean oil actually gained 0.36 cents to finish the week at 48.93 cents.

WHEAT HIGHLIGHTS:

• Wheat futures closed lower across all three classes today, pressured by a stronger U.S. dollar and weaker Paris milling wheat (Matif) futures. Sentiment was also influenced by reports of potential progress in Russia-Ukraine peace talks. Ukrainian President Zelensky told President Trump he was prepared to take swift steps toward peace, as negotiations continue in Turkey. A resolution could eventually boost wheat production and exports from the Black Sea region, applying additional pressure to global prices.
• Yesterday the wheat crop tour in Kansas concluded, with the Wheat Quality Council finding a final average yield of 53 bpa, which compares to the USDA’s estimate of 50 bpa, and is the highest since 2021. However, they also estimated total production at 338.5 mb versus the USDA at 345 mb. This would seem to suggest that they are expecting a lower amount of harvested acreage.
• According to the USDA, as of May 13, an estimated 23% of U.S. winter wheat acres are experiencing drought conditions, which is up 1% from the previous week and down 2% from the same time last year. Spring wheat area in drought also increased by 1% from a week ago to 38%. This is far above last year’s 14% drought reading. But with rains in the northern Plains, spring wheat drought conditions may ease next in next week’s estimate.
• FranceAgriMer has estimated 73% of the French soft wheat crop is in good or very good condition as of May 12. This is down slightly from a week ago, but according to the USDA, areas of northern Europe are too dry – more rain will be needed for development of winter crops.

DAIRY HIGHLIGHTS:

• Despite a strong showing in cheese prices today, Class III futures were pressured by profit taking heading into the weekend. Class III futures closed 
• Spot cheese gained 4.625 cents on the day to close at its highest level since January 6th at $1.9050/lb. Whey added half a cent to close at $0.55/lb.
• The Class IV market was quiet today with just the July and August contract improving slightly while all other 2025 contracts were unchanged.
• Spot butter tacked on a penny to close at $2.3425/lb on 10 loads traded. Powder lost just 0.25 cents to go home at $1.2250/lb.

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Author

John Heinberg