CORN

• Corn futures are trading modestly higher Thursday morning, drawing spillover support from strength in the wheat market. September corn is up 2-1/4 cents at $4.51-1/4, while December corn is 2-1/2 cents higher at $4.74-1/4.
• Weekly ethanol production increased to 330 million gallons, up 8 million gallons from the previous week. Corn use for ethanol was estimated at 110 million bushels, roughly in line with, or slightly ahead of, the pace needed to meet USDA’s marketing-year forecast.
• USDA will release its weekly Export Sales report later this morning. Corn export sales have been disappointing in recent weeks as higher U.S. prices, strong competition from South America, and a stronger U.S. dollar have weighed on demand.

SOYBEANS

• Soybean futures are trading modestly higher Thursday morning as the market attempts to recover from Wednesday’s sharp decline. August soybeans are up 1-1/4 cents at $11.79-1/4, while November soybeans are 3-3/4 cents higher at $11.96-1/2.
• Brazil’s oilseed group Abiove raised its 2026 outlook for both soybean exports and domestic crushing. The group now projects record soybean exports of 115.4 million metric tons, up 1.1% from its June estimate, while soybean crush is expected to reach 63.3 million metric tons, slightly above the previous forecast of 63.0 million metric tons.
• Forecast rainfall expected later this week is viewed as timely for the U.S. soybean crop as it enters the critical pod-setting stage, when adequate moisture is essential for maximizing yield potential. The improved weather outlook has weighed on soybean prices after recent heat concerns had provided support to the market.

WHEAT

• The wheat complex is trading sharply higher Thursday morning as renewed tensions between Russia and Ukraine raise concerns over Black Sea grain exports. Looking at the September contracts, Chicago wheat is up 22-1/2 cents at $6.83-1/4, Kansas City wheat is 2-1/4 cents higher at $7.50-3/4, and Minneapolis spring wheat is up 18 cents at $7.23.
• Escalating tensions in the Black Sea continue to disrupt grain trade as both Russia and Ukraine target ports, grain infrastructure, and commercial vessels. The attacks have increased logistical costs and slowed grain movement through the region.
• Russia has reportedly considered placing military personnel and weapons aboard commercial vessels to deter further attacks and ensure safe passage, while three major Black Sea grain terminals have also restricted grain intake, adding to concerns over export flows.

Author

Matthew Lucas