Market News
Soybeans, corn up on yield questions, export sales
Soybeans were higher on short covering and technical buying, finishing the week with strong gains. Beans had an up and down end to the week while watching late development weather. A major private crop tour is pointing towards lower-than-last-year pod counts and yields in some key growing areas, potentially tightening the balance sheet significantly. Ahead of the open, unknown destinations bought 720,000 tons of U.S. beans and China picked up 712,000 tons, both for 2026/27 delivery. That sale to unknown could turn out to be China when its time for delivery. Beans are also looking at conditions in South America ahead of 2027 crop planting. Soybean meal futures were up and bean oil was down on product spread adjustments.
Corn was higher on short covering and technical buying, ending the week solidly higher. Corn is anticipating at least some cut in yield by the USDA following a recent major private crop tour. Harvest is just getting underway in some areas and the USDA’s final numbers won’t be out until January, but it does look like weather issues during July and the first part of August in parts of the region had at least some impact on production. The trade is also watching harvest activity in South America. The Buenos Aires Grain Exchange says 81.3% of Argentina’s corn crop has been harvested, behind average due to weather issues. The USDA will update supply, demand, and production numbers September 11th, while CONAB’s next look at Brazil’s crop is set for September 15th. Those South American crops will create some competition, but U.S. export trade could continue to be underpinned by the smaller crop in Europe and the lack of movement out of the Black Sea. Unknown destinations purchased 205,000 tons of new crop U.S. corn Friday morning.
The wheat complex was lower on profit taking and technical selling, with the three U.S. pits closing out the week firm to sharply higher. Despite the Black Sea export issues caused by Russia’s war on Ukraine, there’s been no real improvement in global demand for U.S. wheat. Still, that’s also a long-term concern as infrastructure damage will take time to repair, there’s no end in sight to the conflict, and August export business for both Russia and Ukraine is expected to be dramatically lower than last year. Stateside, the trade’s monitoring the spring wheat harvest, along with conditions ahead of winter wheat planting for 2027. Globally, the market is watching Argentina, Australia, Canada, and Europe, in addition to exports and crops in the Black Sea region.
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