Key facts
- Soybeans are trading higher, supported by energy rebound and cash market strength.
- Record-high crush margins are driving soybean demand.
- Year-to-date soybean crush is 8% ahead of last year and 1% above expectations.
- Grains are under pressure with light losses, though corn found support from a flash sale.
- US weather patterns are gaining attention as areas report a need for rain.
- Reports suggest China is buying US soybeans.
Grains are experiencing pressure mid-week, with minor losses, while soybeans are showing strength, driven by a rebound in the energy complex and robust cash market conditions. Record-high crush margins for soybeans are a significant factor supporting demand. Year-to-date, soybean crush volumes are 8% higher than the previous year and 1% above expectations. Reports also suggest China is buying US soybeans. Corn is attempting to move higher, but overall grains are facing pressure due to a lack of fresh bullish news, which is diminishing interest from managed money. Uncertainty surrounding the US-Iran conflict is also contributing to market indecision. Traders are beginning to focus more on US weather patterns, as several regions are reporting a need for rainfall, and the Corn Belt's forecast is not indicating excessive wetness. The US demand market is in a transitional phase, moving from old crop to new crop sales, which is contributing to increased market volatility. Corn did find light support in a flash sale of 136,000 metric tons to an unknown buyer. A 16% spike in US layoffs from April to May added to negative economic outlooks. Oliver Sloup discussed the ongoing downward trend across the grain markets. July Corn futures settled 9 cents lower at 431'4, while December Corn futures also declined, settling 6.75 cents lower at 459'6. July Soybean futures dropped 11.25 cents to 1154'0, while the new crop November contract fell 10.25 cents to 1167'2. July Chicago Wheat futures faced double-digit losses, down 15.5 cents to settle at 587'2. Weather remains a key factor, with the 6-to-10 day outlook forecasting above-normal temperatures and precipitation across the Midwest, potentially providing a catalyst for crop development after initial condition ratings fell below expectations. Traders are also positioning ahead of the upcoming WASDE and acreage reports. As of 6:30 AM CT, July soybeans were up $0.05 at $11.7025, July corn was unchanged at $4.405, and July Chicago wheat was down $0.01 at $6.02.