Soybeans Surge as Yield Concerns Mount

Soybean futures are on the rise due to concerns over late yield in certain regions. Near-term weather forecasts indicate hot and dry conditions, which could impact yields if not addressed. The USDA's upcoming supply, demand, and production numbers will provide further insight into market trends.

Export sales for old crop soybeans were down 3.5 million bushels from last week, but new crop sales remained strong at 71.6 million bushels, primarily to China and unknown destinations. The USDA reported a sale of 192,000 tons of U.S. beans to China for 2026/27 delivery, bringing the total announced new crop sales to 1.097 million tons.

Corn prices were mixed, with some adjustment in spreads. Conditions in the Eastern Corn Belt have been less stressful than those in the Western Corn Belt over the past couple of months. However, recent private estimates suggest a year-over-year decline in yield nationally.

The wheat complex saw profit taking and technical selling due to being overbought. The war between Russia and Ukraine continues to impact global wheat trade, with proposed peace talks stalled. Global demand for U.S. wheat is slow due to high prices, with weekly sales below average at 11.5 million bushels.