Grain Markets Eye WASDE Report Amid Weather Optimism

Grain markets closed mostly lower on Wednesday, August 5, as investors weighed improving weather forecasts against expectations for the upcoming USDA World Agricultural Supply and Demand Estimates (WASDE) report. The report could redefine yield expectations, influence commodity prices, and shape marketing decisions for producers heading into harvest.

Corn futures extended recent losses despite a significant export announcement: private exporters reported the sale of 4.7 million bushels to Mexico, with 25% scheduled for delivery in the 2026-27 marketing year and the remaining 75% destined for 2027-28. Meanwhile, U.S. ethanol production averaged 1.107 million barrels per day during the week ending July 31, signaling continued strength in domestic corn demand.

Soybean futures followed corn lower as traders questioned whether prices could return to the $12 per bushel benchmark before harvest. Market participants now look toward the August WASDE report for possible surprises that could tighten supplies or adjust yield forecasts.