CORN HIGHLIGHTS:

• Corn futures saw additional selling pressure on Tuesday as better than expected crop ratings and technical selling pushed prices to new lows. September corn futures closed at 398 and under the psychological 400 level. December corn posted a new low and low close on the session.
• USDA crop ratings rose to 74% good-to-excellent, up 1 point from last week and exceeding market expectations for no change. This reinforces sentiment for strong yield potential.
• Some yield models are now projecting 2–5% above-trend yields, which would imply a record U.S. corn crop if realized.
• USDA announced a flash sale of corn overnight. Mexico purchased 112,776 MT of corn for the 2025-26 marketing year. These are routine sales and expected by the market in this window and have failed to support prices.
• Brazil’s second crop harvest reached 28%, up from last week but still well behind the five-year average. Wet weather and logistical delays continue to slow progress despite a record crop on the horizon.

SOYBEAN HIGHLIGHTS:

• Soybeans ended the day lower again with the August contract losing 34-1/4 cents just this week so far. Good weather for the bulk of the Corn Belt so far has added pressure along with additional tariffs on Japan and South Korea. Both situations have spurred funds to sell and adopt a risk-off mentality. Soybean meal was lower while soybean oil followed crude higher.
• Crop ratings held steady at 66% good-to-excellent, 2 points below a year ago. Blooming progress reached 32% (vs. 31% avg), and 8% of the crop is setting pods (vs. 6% avg).
• Exporters reported a sale of 144,000 MT of soybean meal to the Philippines, split between the 2024/25 and 2025/26 marketing years.
• Yesterday’s CFTC report saw funds as sellers of 23,023 contracts of soybeans which left them with a net long position of just 425 contracts, but they likely hold a net short position with the action this week. Funds sold 4,908 contracts of bean oil and 21,858 contracts of meal.

WHEAT HIGHLIGHTS:

• Wheat closed lower again today, continuing yesterday’s downward momentum. Spillover from corn and soybeans, a rising U.S. dollar, and winter wheat harvest pressure are all factors in the lower trade.
• Crop Progress: Winter wheat ratings held steady at 48% good/excellent, with 53% of the crop harvested—slightly behind the 5-year average. Spring wheat ratings fell 3 points to 50% G/E; 61% of the crop is now headed.
• SovEcon has increased their estimate of 25/26 Russian wheat exports by 2.1 mmt to 42.9 mmt. This comes not long after the Russian ag ministry temporarily removed the wheat export duty. For reference the USDA is using an estimate of 45 mmt of Russian wheat exports.
• The USDA Foreign Agricultural Service is estimating Turkey’s 25/26 wheat imports will total 10.3 mmt. This is 2.75 mmt above the last USDA WASDE forecast.

DAIRY HIGHLIGHTS:

• Class III milk futures fell for a second straight session led by the August contract which fell 23 cents to $17.91.
• Spot cheese improved 1.25 cents to move back into the $1.70/lb range at $1.71/lb. Whey was down slightly to $0.6050/lb.
• Class IV milk futures saw additional gains on Tuesday. September and November futures led the way once again with both contracts gaining 15 cents to $19.70 and $20.02 respectively.
• Spot was little moved on the day but did lower to $2.6175/lb. Powder added half a cent to close at $1.2675/lb.

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Author

Amanda Brill