Corn futures reversed sharply higher after setting new contract lows overnight, with prices climbing 7.5 to 8.5 cents on short covering and technical buying. The move gained additional fuel from forecasts for a short-lived heat dome across the central U.S. that could stress early pollination if it lingers, while also helping to dry out parts of the Eastern Corn Belt. December corn settled up 8.5 cents at $4.43 per bushel.

Weekly corn export sales totaled 58.2 million bushels, split between 29.3 million bushels of old crop and 29 million bushels of new crop, landing within analyst expectations overall. Old crop sales ran below the recent four-week average, while new crop commitments reached a four-year high of 212 million bushels, up 50% year-over-year. Mexico and Japan led purchases for both marketing years, with year-to-date old crop commitments now up 25% from last year versus the USDA’s 16% forecast.

Analysts expect a modest decline in corn planted acres to 94.75–95.1 million ahead of next Tuesday’s USDA reports, down from March intentions of 95.3 million. June 1 stocks are estimated near 5.425 billion bushels, up sharply from last year. These updates will help clarify the domestic supply picture as the market enters the critical pollination window.

Argentina’s corn harvest has advanced to 52% of the expected record crop, according to the Buenos Aires Grain Exchange, providing some relief to global supplies while traders continue monitoring South American progress. Brazil’s next CONAB report is due in mid-July. This international harvest flow contrasts with U.S. focus on domestic weather and crop development conditions.

Ethanol production slipped to 320 million gallons last week, falling below expectations and the pace needed to meet USDA corn usage estimates for the tenth straight week. This softer demand signal was offset by today’s broader price strength. In supportive policy news, the Trump administration urged the Senate to advance legislation allowing year-round E-15 sales, which could bolster longer-term ethanol and corn demand.

Managed money funds have continued expanding their net short position in corn futures over the past week, selling the equivalent of more than 152 million bushels amid generally bearish weather views. The spread between Chinese Dalian futures and U.S. Gulf corn has widened to just over $150 per metric ton, the widest in nearly two years. Today’s reversal may prompt some short covering in this category.

Soybean futures surged sharply higher in two-sided trade, gaining 19 to 22 cents across the complex on short covering, technical buying, and a turnaround in the U.S. dollar. The rally was reinforced by indications that China is seeking offers for U.S. beans for September/October delivery, alongside a more threatening weather forecast that added premium. November soybeans closed up 22 cents at $11.57 per bushel, with both July and November contracts holding above their June lows despite new weekly lows.

New crop soybean export sales reached 33.1 million bushels, led by unknown destinations and China, while old crop sales totaled 16.7 million bushels topped by unknown destinations and Algeria. Last week’s sales to China exceeded initial reports, sparking trader optimism about further demand improvements from Beijing. Overall sales were up on the week and viewed as constructive for prices.

Traders expressed increased optimism about potential additional Chinese purchases of U.S. soybeans following the stronger-than-expected recent sales figures. This demand signal helped drive broad-based gains across the soybean complex, including meal and oil. Bean prices remain highly sensitive to any further developments on Chinese buying interest.

Soybean meal and oil futures moved higher on technical momentum and improved crush margins, with bean oil receiving extra support from the rally in crude oil. Spot crush margins jumped 6 cents to $3.29.50 per bushel, while bean oil PV rebounded to 53.5%. Product spreads were mixed, but the overall complex showed clear strength.

U.S. FOB offers at the Gulf have moved back to a slight premium over Brazilian offers for July/August, while remaining slightly below for September forward. This shift reflects recent price action and could influence near-term export flows. The break-even price for bean oil used by a California renewable diesel manufacturer has fallen to 87 cents per pound following declines in diesel prices.

Nearby soybean spreads traded to new lows ahead of first notice day for the July contract, even as the broader market recovered strongly. July oil held support above its 100-day moving average before rebounding. These spread dynamics highlight ongoing commercial positioning pressures in the front month.

Near-term crop weather continues to look generally bearish for soybeans, with an upcoming heat dome expected to have more impact on corn than on soybeans. However, the potential for heat stress was sufficient to add buying interest today alongside the demand optimism. Argentina’s soybean crop is now 98% harvested, per the Buenos Aires Grain Exchange.

Wheat futures finished mixed but mostly modestly higher, with CBOT September wheat up 5.5 cents to $6.01.50, Kansas City up 5 cents to $6.30.50, and Minneapolis down 1.75 cents to $6.15. The complex found support from a softer U.S. dollar and positive export sales, despite some intraday tests of new contract lows. July Chicago wheat settled up 5.25 cents at $5.91.

New crop U.S. wheat export sales reached 18.5 million bushels, above the prior week and mainly to Mexico and Japan. Year-to-date commitments stand at 202 million bushels, down 17% from last year versus the USDA forecast of a 15% decline. By class, sales included 5 million bushels HRW, 4.3 million each HRS and white, 4 million SRW, and 1 million durum.

Parts of the Plains are expected to see rain that will delay winter wheat harvest activity but help recharge soil moisture ahead of planting. Heavy rains across the southern Midwest will continue to slow SRW development and harvest. These weather patterns are exerting a mixed influence on the domestic wheat outlook.

The trade is closely monitoring conditions and fieldwork across major global wheat producers including Argentina, Australia, Canada, Europe, Russia, and Ukraine. The Buenos Aires Grain Exchange reports that 66% of Argentina’s new wheat crop is now planted. This global supply picture remains a key focus amid ample world stocks.

Wheat prices benefited from the lower U.S. dollar, which improved the competitiveness of U.S. exports in the international market. This currency move helped offset some pressure from ample global supplies that had weighed on prices earlier. The market appears positioned for potential volatility around upcoming international weather developments.

Inside trade developed in Minneapolis July wheat after it established a new contract low the previous day, showing some resilience in the spring wheat market. Overall, the wheat complex remains sensitive to both domestic harvest progress and broader global supply and demand shifts.