The CME and Total Farm Marketing Offices will be closed Monday, September 7, in Observance of Labor Day

CORN HIGHLIGHTS:

• Corn futures finished lower for the third consecutive session, with pressure from wheat and position squaring ahead of the Labor Day weekend limiting buying interest. December corn lost 4 cents to 536 ¾, while the March contract lost 3 ¾ cents to 552 ¼. For the week, December corn traded ¼ cent higher than last week.
• Corn’s upside momentum has slowed over the past few sessions, likely due to the holiday weekend and weakness in wheat. If the market enters next week without fresh bullish news, the loss of momentum could trigger additional long liquidation.
• USDA will release the September WASDE report on Friday, September 12. The market may stay choppy into that report as traders will be looking for confirmation of tighter supplies. The USDA will also be adjusting the old crop balance sheet with information from the end of the 2025-26 marketing year on August 31.
• Peace-talk headlines could create volatility next week. The U.S. negotiating team is traveling to Ukraine and Russia this weekend to pursue talks surrounding the Black Sea conflict and disrupted wheat and corn exports. Any progress toward a ceasefire could pressure grain prices when markets reopen.
• Mostly dry and above-normal temperatures are expected across the Corn Belt, helping push the crop toward maturity. While favorable for harvest progress, the lack of moisture could become a concern in areas where the crop still needs additional grain fill.

SOYBEAN HIGHLIGHTS:

• Soybeans closed lower Friday as traders took some profits ahead of the three-day holiday weekend, but continued Chinese buying provided underlying support. The market also continues to watch the developing Super El Niño, which historically has brought drier conditions to northern Brazil and above-normal rainfall across the south.
• November soybeans lost 6-1/2 cents to $13.09-3/4 and took out yesterday’s high overnight, but not the high from Wednesday. March soybeans lost 6-1/2 cents to $13.30-1/4, October soybean meal lost $0.40 to $348.20, and October soybean oil lost 0.74 cents to 68.89 cents. Crude oil is up 34 cents to $91.64 a barrel.
• President Xi’s upcoming meeting with President Trump is expected to be largely symbolic, with limited expectations for new trade agreements. The primary objective appears to be maintaining the flow of existing trade agreements.
• This morning, private exporters reported sales of 250,600 metric tons of soybeans received in the reporting period for delivery to unknown destinations during the 2026/2027 marketing year. China made a purchase nearly every day this week.

WHEAT HIGHLIGHTS:

• Wheat closed sharply lower across all three classes. U.S. negotiators are headed to Moscow and Kyiv this weekend to help facilitate peace talks between Russia and Ukraine, which added pressure into the marketplace. Additionally, today’s jobs report was stronger than expected, causing the U.S. dollar to rebound and weigh on wheat. In the December contract, Chicago lost 20-1/4 cents to 734, Kansas City fell 13-1/4 cents to 802-1/4, and MIAX dropped 20-1/2 cents to 745.
• According to the USDA, as of September 1, an estimated 82% of U.S. spring wheat acres are experiencing drought conditions. This is an increase of 2% from the week prior. During the same period winter wheat areas in drought increased 3% to 59%.
• The United Nation’s Foreign Agricultural Organization dropped their estimate of 2026 world grain production by 61.1 mmt to 2.98 billion mt. Although this would be the second largest harvest on record, it would also represent the biggest year on year decline since 2018. Global wheat production in specific is expected to rise by 0.5% to 810.7 mmt. However, this still falls well below the USDA’s estimate of 819.3 mmt on the August WASDE report.
• According to Rusagrotrans, Russia’s September wheat exports are forecasted between 1.6-2.0 mmt, though this could depend greatly on what happens with Black Sea shipping routes. Meanwhile, they estimated August wheat shipments at 2.1 mmt, with the majority of that transported by rail.

DAIRY HIGHLIGHTS:

• Class III futures were weaker today ahead of the long holiday weekend. October futures were down 31 cents to $16.39.
• Spot cheese fell slightly to drop below the $1.50/lb level at $1.49875/lb. Whey was up for another day, improving 0.25 cents to $0.7525/lb.
• Class IV milk continued its lower trend today as butter and powder markets were unchanged. October futures lost 15 cents to close at $19.35.
• Both butter and powder markets were unchanged from Thursday at $1.44/lb and $1.88/lb respectively.

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Author

Amanda Brill