Grains and oilseeds are mostly higher on Thursday morning following the overnight session. The U.S. dollar is higher overnight following its recent pause in the rally. Crude oil is sharply higher and posted fresh highs overnight. Stock futures are lower.
CORN
May corn futures traded 2.75 cents lower to close at $4.43 ¾ on Wednesday. Prices had dipped below a near-term support area before fighting to stay in the old trading range.
The current uptrend remains in place despite the sharp reversal from Monday’s highs.
U.S. corn export sales rebounded last week after slumping to low volumes the previous week. Net sales for the current season totaled 2.02 MMT, driven by larger sales to South Korea, Japan, and Colombia.
U.S. ethanol production continued to move at a record this season, but corn crush is slightly lower than a year ago.
SovEcon projects Ukraine’s 2025/26 corn production to be 6 percent lower than the previous season due to reduced planted area. Lower seedings were due to a shift to more profitable oilseeds.
SOYBEANS
Steadier trade for the soybean market on Wednesday after trading just 1 cent lower to $11.69 ½. Losses in soybean meal continued after a sharp decline.
Meanwhile, soybean oil is set for its longest rally in a decade amid rising crude oil prices and biofuel optimism. We continue to see a direct response to escalating conflicts in the Middle East reflected in the market.
The EPA’s Renewable Volume Obligations proposal was sent to the Office of Management and Budget for review. Industry groups hope that the finalized RVOs will be released by the end of the month.
U.S. soybean export sales continued to soften last week, falling to 383,500 MT, compared to 407,100 MT the previous week. China remained the top buyer for the week, while unknown destinations canceled 253,500 MT of soybean sales.
WHEAT
Wheat prices continued to fade yesterday after the May Chicago contract lost 5.75 cents to close at $5.68 ¼. Prices are hovering above the 200-day moving average.
U.S. winter wheat areas experiencing drought conditions increased to 50 percent over the past week, according to the latest Drought Monitor. That compared to just 22 percent a year ago.
Widespread showers are expected to bring much-needed moisture to certain areas this week, though HRW wheat areas could miss out on much of the precipitation.
Statistics Canada said Canadian wheat plantings for the 2026/27 season are expected to decline by 1.1 percent to 26.74 MMT, slightly higher than the pre-report survey estimate. Plantings are expected to remain above the five-year average amid “strong global demand.”
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.