TFM Morning Update 06-02-2025

CORN

Corn is trading higher this morning to kick off the month with support from a higher wheat complex. Corn prices are near their lowest levels of the year due to beneficial rains that have set the crops up well for a potentially hot and dry summer.
Friday’s CFTC report saw funds as buyers of corn. The bought back 2,450 contracts which decreased their net short position to 100,760 contracts as of May 27.
Last week’s export sales report saw corn sales falling from the previous week at 948k tons compared to 1,409k last week. This also compared to 998k a year ago. Top buyers were Mexico, Japan, and Colombia.

Soybeans are trading lower this morning despite gains in corn and wheat after President Trump’s negotiations with China appeared not to go anywhere last week frustrating traders. Soybean meal is lower while soybean oil is following crude oil’s sharp move higher.
Friday’s CFTC report saw funds as buyers of soybeans by 24,043 contracts which left them with a net long position of 36,697 contracts. They sold 3,321 contracts of bean oil and bought back 13,681 contracts of meal.
Estimates for the US April soybean crush ahead of the USDA report see soybean crush at 202 million bushels which would be up 13.8% from 177.6 mb a year ago at this time. Corn used in ethanol is expected to be higher year over year.

All three wheat classes are trading higher to start the month with KC wheat leading the way higher. Poor crop ratings for both spring and winter wheat have been supportive along with a reported increase in feed demand at these lower prices.
Friday’s CFTC report saw funds as buyers of Chicago wheat by 13,681 contracts which left them net short 101,226 contracts. They also bought back 7,667 contracts of KC wheat leaving them short 79,361 contracts.
The southern plains saw another week of wet conditions along with other hard red areas which could have a positive impact on crop ratings. Crop progress will be released this afternoon with new figures.

Amanda Brill