Market News

Wheat consolidates as corn, soybeans see profit taking

Soybeans were lower on profit taking and technical selling. Old crop export sales were up on the week at 6.9 million bushels and new crop sales were the largest in months at 65 million bushels, with both led by China. The second spots were taken by Egypt for 2025/26 and unknown destinations for 2026/27. Unknown could turn out to be China, or another destination, when it’s time for delivery. The trade continues to monitor potential crop stress in some key U.S. growing areas. There are also concerns about non-soybean oilseeds in Western Europe and the potential for the U.S. to benefit from a slowdown in exports out of the Black Sea region. Soybean meal futures were higher and bean oil was lower on the adjustment of product spreads.

Corn was lower on profit taking and technical selling. Parts of the Corn Belt could see cooler temperatures next week, but some areas will remain dry, potentially into the end of the month. That would more than likely create some stress for the developing crop and limit top end yield potential. Corn is also looking at conditions in Europe, in addition to exports from Russia and Ukraine. Old crop export sales were a marketing year low at 12.4 million bushels with new crop down on the week at 12.3 million bushels. Japan and Colombia took the top slots for old crop, with a significant cancelation by unknown destinations, while Colombia and Mexico were in the lead for new crop. Corn is also watching harvest activity in Argentina and Brazil. The USDA’s updated supply and demand numbers are out August 12^th, while CONAB’s next look at Brazil’s crops is set for August 13^th.

The wheat complex was mixed. Wheat consolidated after the big gains on Wednesday, continuing to watch U.S. and world crop weather issues, in addition to movement in the Black Sea region. Recent actions in Russia’s war on Ukraine have the potential to impact about 30% of the world’s wheat trade, which could open the door for the U.S., or other exporters, to fill some of that vacuum. Technically, contracts look a little overbought after the recent rally and traders are wary about pricing wheat above demand. Weekly U.S. sales were below average at 8.6 million bushels, mainly to Japan and Mexico. On the weather side of things, drought has had a severe impact on 2026 U.S. winter wheat production and could impact planting for 2027, especially hard red winter, and spring wheat in the Northern Plains might see some damage from the current generally hot, dry weather pattern. Globally, wheat is monitoring Argentina, Australia, Canada, and Europe, in addition to Russia and Ukraine.