CBOT:
Corn ended the day mixed after following strength in the energy markets for most of the session before losing momentum near the close. The May26 contract gained 1.75 cents to close at $4.625. Jul26 futures added 1.25 cents, while Sep26 futures closed 3/4 of a cent higher at $4.77. Dec26 futures ended the day 1/2 of a cent lower at $4.885.
Soybeans continued to rally, supported by strength in energy markets and news that Brazil implemented stricter sanitary inspections on soybean exports to China (read more below). The May26 contract gained 11.75 cents to close at $12.2725. Jul26 futures closed 11.0 cents higher at $12.40, while Nov26 futures finished the day 1.75 cents higher at $11.65.
Market Headlines:
Cargill pauses soybean export operations from Brazil to China amid stricter inspections:
Brazil’s Agriculture Ministry implemented stricter sanitary inspections on soybean exports to China, including enhanced checks for pests and weeds. The change followed a request from Chinese authorities. Cargill’s Latin America head, Paulo Sousa, said the revised inspection requirements have made it difficult for traders to comply with export protocols. As a result, Cargill has paused export operations to China and stopped purchasing soybeans from Brazilian farmers because the company cannot currently ship to China.
Sousa added that negotiations are ongoing, but no resolution has been reached so far.
Conflict in Iran escalates as Iranian forces target merchant vessels in the Gulf:
Iranian officials warned that crude oil prices could reach $200 per barrel as fighting intensifies and transit through the Strait of Hormuz remains effectively halted. Nearly one-fifth of the world’s oil supply moves through the strait, and the disruption to shipping has raised global supply concerns. Iranian forces also attacked at least three merchant vessels in a single day, bringing the total number of vessels struck since late February to fourteen.
In response to rising oil prices and falling equity markets, the International Energy Agency (IEA) proposed releasing up to 400 million barrels of oil from strategic reserves. Iran dismissed the proposal as inadequate, signaling that it intends to continue exerting economic pressure through disruptions and threats to maritime traffic.
Weekly Export Sales:
US corn export sales totaled 59.18 million bushels, within market expectations of 31.49–86.61 million bushels, but down from the previous week’s 79.63 million bushels. Export sales for corn continue to run at a strong pace with the last 4-weeks averaging 56.2 million bushels per week compared to last year’s same period averaging 40.4 million bushels per week. Total commitments now stand at 2.619 billion bushels, 32% above last year’s 1.989 billion bushels. The largest increases were reported for Japan, Mexico, South Korea, Colombia, and Taiwan.
US soybean export sales totaled 16.78 million bushels, within market expectations of 9.19–29.40 million bushels and above the prior week’s 14.09 million bushels. Over the last four weeks, soybean sales have averaged 17.6 million bushels per week, bringing total commitments to 1.341 billion bushels. That figure is 19% below last year’s total commitments of 1.649 billion bushels at the same point in the marketing year. The largest increases were reported for Indonesia, Mexico, Egypt, China, and Vietnam.
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