CORN HIGHLIGHTS:

• Corn futures saw some additional buying support on Tuesday as short covering and technical buying push the market higher. September corn added 5 2/2 cents to 443 ¾, and December corn gained 6 ½ cents to 464 ¼.
• Weather forecasts continue to project above-normal temperatures into the middle of the month as a heat ridge looks to develop over the western half of the Corn Belt. Precipitation is expected to be lighter than normal, but with recent moisture in the air, rounds of pop-up storms will be seen.
• Managed hedge funds have lightened their recent short position. According to the latest Commitment of Traders report, as of June 30, funds were net short 47,000 contracts of corn, an improvement of 22,691 contracts over last week.
• Corn conditions remained unchanged week-over-week at 67% Good/Excellent. This value is down 7% from last year, but up 3% over the 5-year average.
• On Friday, the USDA will release the July WASDE/Crop Production report. This report will give the market a look at the new balance sheet after the acre adjustments and corn supply from the June 30 Planted Acres and Grain Stocks report.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day higher following yesterday’s momentum, a hot and dry 8-14 day forecast, and rumors of Chinese purchases. August soybeans gained 9-3/4 cents to $11.93-3/4, while November gained 5-1/2 cents to $11.97-3/4. August soybean meal was up $3.30 to $316.20, while August soybean oil was up 0.38 cents to 68.59 cents.
• Rumors that China has made purchases or is looking to purchase U.S. soybeans have supported prices over the past 2 days, but there has been no confirmation from the USDA yet that purchases have been made. Columbia, however, purchased 105,000 metric tons of soybean cake and meal for delivery in the 25/26 marketing year.
• Yesterday’s Crop Progress report saw soybean ratings drop one point from last week to 64% good to excellent, which compared to 66% a year ago. 34% of the crop is blooming, which compared to the 5-year average of 28% and 9% is setting pods, which compares to the average of 5% at this time.
• Yesterday’s CFTC report was released late due to the holiday and showed funds as buyers of corn as of June 30. They bought back 22,691 contracts, which reduced their net short position to 47,000 contracts. They sold 11,357 contracts of bean oil which reduced their net long position to 92,232 contracts and sold 6,760 contracts of bean meal which left them long 1,841 contracts.

WHEAT HIGHLIGHTS:

• Wheat finished the session with gains across the board, albeit in a more modest fashion compared with yesterday’s price surge. Spillover support from corn and soybean futures was helpful today, however, harvest pressure may limit upside potential for wheat. In the September contract, Chicago gained 4-1/2 cents to 618-1/2, Kansas City was up 3 cents at 652-3/4, and MIAX climbed 3-1/2 cents to 633.
• In yesterday afternoon’s crop progress report, the USDA indicated that winter wheat conditions were steady with the previous week at 26% good to excellent. This is likely the last rating of the year, and among the lowest on record. An estimated 59% of that crop has been harvested, compared with 51% last year and 51% on average. As for spring wheat, conditions slipped 2% to 57% good to excellent and 54% of the crop is headed, in line with the average but below the 58% figure from a year ago.
• On a bearish note, U.S. wheat export offers are said to be at a significant premium to other world origins. Reportedly, U.S. HRW wheat at the Gulf is $1.30/bu more expensive than its counterparts from Russia and the EU. In related news, Russian export values have continued to fall due to expectations for a good harvest in the Black Sea area.
• Ukraine’s 25/26 grain exports, totaling 37.2 mmt were down 8.4% from the 40.6 mmt shipped in the 24/25 season. Wheat, specifically, accounted for 14.1 mmt of the total, down from 15.7 mmt the year prior.
• The Brazilian wheat sowing campaign is said to be nearing its end. According to CONAB, through June 26 an estimated 87.3% of the intended area has already been planted.

DAIRY HIGHLIGHTS:

• Today’s Global Dairy Trade auction event saw its largest percentage drop of year at 4.90%. The GDT trade weighted index now sits at 1,121 points.
• Despite a weaker GDT auction, spot cheese was able to jump 4.875 cents to close at $1.5150/lb. Whey lost 0.25 cents to close at $0.6725/lb.
• Class III saw some decent price action after the rise in cheese today. August futures climbed 29 cents to close at $16.39.
• Class IV prices couldn’t gain any momentum on the day as powder backed off. August futures fell 40 cents to close at $17.50.
• Spot butter was unchanged from yesterday at $1.65/lb while powder lost 2.50 cents to go home at $1.4750/lb.

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Author

Amanda Brill