CORN

• Corn futures are starting the week lower with little new news to drive the market. July corn is down 4 cents currently, trading at 413. December futures are down 3 cents at 441.
• Corn demand continues to show strength, with export commitments running 26% ahead of last year’s pace. Feed demand also remains supportive, as the latest cattle-on-feed report showed inventories at 11.7 million head, up 2% from a year ago, reinforcing expectations for solid corn consumption in the livestock sector.
• Forecasts continue to call for mild temperatures and frequent rainfall opportunities across much of the Corn Belt over the next two weeks. With the crop approaching the critical pollination period, the current weather pattern is expected to support crop development and help maintain strong condition ratings.

SOYBEANS

• Soybeans are slightly higher to start the week; July soybean are down a ½ cent at 1122 while November futures are up 2 cents at 1145.
• U.S. soybean offers have become more competitive in the global market as Brazilian export premiums have strengthened in recent weeks. Reports of Chinese interest in U.S. soybeans last week were viewed as an encouraging sign as China works toward fulfilling its reported 25 MMT purchase commitment, providing some optimism for new-crop demand.
• Following widespread heavy rains across portions of the Midwest last week, traders expect USDA’s weekly Crop Progress report to show soybean condition ratings declining 1–2 percentage points. While adequate moisture remains beneficial overall, excessive rainfall in some areas may have caused localized flooding, ponding, and crop stress.

WHEAT

• Wheat futures are lower to start the week; July CBOT wheat is down 3 at 602 while July KCBOT wheat is down 4 at 640. July spring wheat is down 9 currently at 613.
• Hot and dry conditions across much of Western Europe continue to support Paris milling wheat futures and are helping lift global wheat markets to start the week. While some forecast models are showing improved moisture chances in the two-week outlook, traders remain concerned that prolonged stress during key development stages could trim yield potential.
• The U.S. Dollar Index has rallied over the past month as expectations grow that interest rates could remain higher for longer. A stronger dollar makes U.S. grain exports more expensive for overseas buyers, adding another competitive challenge for U.S. wheat, corn, and soybean exports in an already crowded global marketplace.

Author

Keegan Madigan