Market News

Soybeans, corn eke out modestly higher finishes

Soybeans were modestly higher on short covering and technical buying. It was an up and down day, with traders looking at favorable development weather, but contracts eventually found some support and crude oil was higher. While old crop export sales were a marketing year low, new crop sales were solid and China bought another 122,000 tons of 2026/27 U.S. soybeans ahead of the open. 2025/26 sales last week were 1.2 million bushels, mainly to Indonesia and the Netherlands, with a cancelation by unknown destinations, and 2026/27 sales were 33.2 million bushels, led by unknown destinations and China. China is also reportedly still buying beans from Brazil, but U.S. prices continue to look competitive. Soybean meal and oil futures were up, also bouncing off the recent lows.

Corn was modestly higher on short covering and technical buying. Corn is monitoring near-term development conditions ahead of next week’s USDA production update. The final determination of the crop won’t be known for months, but early expectations ahead of August 12^th seem to be pointing towards a steady to higher production guess. The trade is also watching second crop harvest in Brazil, with CONAB’s update out on the 13^th. The USDA’s Foreign Ag Service office in Brazil estimates 2026/27 corn production at 13.9 million tons, compared to the anticipated 2025/26 total of 139.5 million tons due to lower yields, with exports of 43 million next marketing year, compared to 42 million tons marketing year. Old crop export sales were a marketing year low at 4.6 million bushels, but new crop was up on the week at 40.4 million bushels. South Korea and Colombia topped the list for old crop, but there was a big cancelation by unknown destinations, and unknown and Mexico were the primary new crop buyers. The USDA FAS office in Ukraine sees 2026/27 corn production at 32.99 million tons, compared to the most recent official guess of 30 million and the 2025/26 total of 30.68 million. Exports for the upcoming marketing year have been slashed due to the nearly complete lack of movement in the Black Sea because of war.

The wheat complex was lower on fund and technical selling. Exports out of the Black Sea continue to be stalled by war, but U.S. wheat is not competitively priced enough to stimulate demand from outside of the usual customers. Last week’s sales total of 10.9 million bushels was a little bit larger than average, headlined by the Philippines and Mexico. The U.S. winter and spring wheat harvests are ongoing, with traders also monitoring crops in Argentina, Australia, Canada, Europe, Russia, and Ukraine. The USDA attaché in Kyiv projects Ukraine’s 2026/27 wheat crop at 25.3 million tons, compared to 24.727 million in 2025/26. Exports during the current marketing year are expected to be 10.8 million tons, compared to 14.104 million last marketing year because of the movement issues in the Black Sea. The Buenos Aires Grain Exchange says 99% of Argentina’s wheat crop is planted.