Market News

Corn grinds lower under early harvest pressure

Soybeans were lower on profit taking and technical selling. Traders continue to watch weather and get ready for the USDA’s supply, demand, and production numbers out Friday. Beans are also looking at weather ahead of widespread planting in South America. Ahead of Wednesday’s open, China bought 340,000 tons of U.S. soybeans and unknown destinations picked up 100,000 tons, both for delivery during the 2026/27 marketing year. There’s some chatter there could be a short-term slowdown in purchases by China because of domestic crush margins. The USDA’s weekly sales numbers are out Friday, delayed by Labor Day. Soybean meal futures were mostly modestly higher, while bean oil was mostly modestly lower, with both adjusting spreads. Statistics Canada says canola stocks on July 31^st were 1.899 million tons, a year-to-year increase of 18.9%, partially because of tariffs by China, while noting strong domestic crush usage.

Corn was lower on profit taking and technical selling. 5% of U.S. corn is harvested, just ahead of average, and crop ratings are less of a factor right now as the crop finishes and harvest goes widespread. There’s a wide range of corn yield estimates ahead of Friday’s report following the hot, dry weather during July and parts of August. Early harvest delays are likely in parts of the region with a general shift in the near-term weather pattern. Ahead of the open, Mexico purchased 182,880 tons of 2026/27 of U.S. corn. The U.S. Energy Information Administration’s weekly ethanol numbers are out Thursday. Traders are also looking at planting weather in South America with CONAB’s next look at Brazil’s crops set for the 15^th.

The wheat complex was lower on profit taking and technical selling. The spring wheat harvest is nearing completion as winter wheat planting gets underway. Some spring wheat growing areas have seen rain delays this week, while the big questions for winter wheat planting are the effects of expanding drought in parts of the Plains and high input costs. Black Sea export issues have no sign of ending any time soon, but U.S. prices are not currently competitive. While there could be more talks with Russia and Ukraine mediated by the U.S. soon, fighting resumed pretty quickly after last week’s discussions and ceasefire attempts over the last four and a half years have been largely ineffective. It will also take time to repair port infrastructure damage. That slow shipping out of the Black Sea is impacting about a third of global wheat trade. At least part of that business has gone to Argentina and Australia. Statistics Canada says that wheat stocks on July 31^st were 6.649 million tons, up 56.8% on the year because of record production.