Corn Slightly Higher on the Week

• December CBOT corn futures added ¾ of a cent this week to close at 677-1/2.
• December of 2023 CBOT corn futures were unchanged this week closing at 616-3/4.
• September 1 corn stocks came in at 1.377 billion bushels, 135 million bushels less that what traders were expecting. The USDA also revised the 2021 US corn crop down 41 million bushels.
• Barges on the Mississippi River have had to reduce loads by 40% due to low water levels as of late, this in turn has sent barge freights sharply higher which should weaken river basis levels in the coming weeks.
• US corn harvest should progress nicely in the coming week with warmer and drier than normal conditions expected for much of the Midwest.
• Despite the bullish USDA grain stocks numbers corn futures were nearly unchanged for a third consecutive week, a surging US dollar along with weak ethanol and export data continue to provide headwinds.

Soybeans Slide on USDA Report

• November CBOT soybean futures shed 61 cents this week to close at 1364-3/4.
• July of 2023 CBOT soybean futures shed 43-3/4 cents this week to close at 1393.
• As global macroeconomic concerns continue to mount, and the US dollar continues to rally soybean futures broke to the downside from their recent sideways trading range.
• Argentina’s soybean acreage is expected to rise this year as dryness has reduced wheat plantings. 16.7 million hectares are expected to be planted this year according to the Buenos Aires Grain Exchange.
• September 1 US soybean stocks came in 32 million bushels higher than traders expected in today’s report, an increase to the 2021 soybean crop of 30 million bushels brought September 1 stocks up to 274 million bushels.
• With active harvest, big movement of soybeans to processors, and a bearish short-term export outlook, the market looks vulnerable to a further setback.

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Class III Struggles at $22.00 Again

The October Class III contract came under selling pressure at the $22.00 mark once more, closing down 19 cents on the day but still up 85 cents on the week. The Class IV trade was mixed today but the October contract was up 6 cents on the day/week to close at $24.36, 81 cents above the November contract as the calendar shifts to a new month and quarter on Monday. The spot trade was quiet today on low volume and movement. Next week will give the market a Dairy Products Production report on Tuesday as well as a Global Dairy Trade Auction, followed by August Dairy Exports on Wednesday.