Thursday June 26th, 2025

• Corn is up slightly this morning, still trading near new contract lows posted yesterday.
  • In the past 4 trading sessions new crop corn futures have lost nearly 25 cents.
  • The Bearish tone this week is driven by non-threatening Central US weather pattern and increasing South American corn export aggression and Brazil’s record sized Safrinha crop.
• Soybeans are flat this morning, hope that US/India and US/China trade pacts are fading.  New crop US soybean export sales are not ideal.
• Wheat is slightly lower this morning, harvest continuing in the US with good yields reported.
• Bearish grain traders have covered a modest portion of their position ahead of the USDA report.
• China booked its first ever purchase of Argentine soymeal yesterday – 30K tons.  The Chinese feed mills normally purchase meal domestically, Argentina’s soymeal prices remain very competitive.
• The Export Sales report will be released later this morning.  The report is expected to show ongoing active US corn export demand while US wheat and Soybeans stay seasonally slow.
• Brazil has approved an increase in its biofuel mandates.  As of August 1st, ethanol blended gasoline will rise from 27% to 30% and Biodiesel blended with diesel will increase from 14% to 15%.
• US ethanol production declined last week but still remains robust, see chart below.
• US dollar still under pressure, as geopolitical tensions subside.