DeLong Commentary

Midday Grain Update

10.58

🔴 CORN: Despite the E15 ruling, corn is trading lower. July corn is down 15 cents at $4.65, while December corn is down 13.25 cents at $4.89.

🔴 BEANS: Soybeans are under pressure, with disappointment around demand expectations and the potential shift in biofuel usage weighing on the market. July beans are down 45.5 cents at $11.83, while November beans are down 31.75 cents at $11.76.

🔴 WHEAT: Wheat is following the rest of the complex lower, with July 2026 down 21.25 cents at $6.55.

Headlines:

E15 Approval

The House passed legislation allowing nationwide year-round E15 sales with bipartisan support, marking a positive development for corn-based ethanol demand.

The bill now moves to the Senate, where it is expected to face additional debate and resistance before becoming law.

While the approval reinforces longer-term demand potential for corn, the market has shown limited immediate reaction, suggesting the impact is more supportive over time rather than a near-term price driver.

Soybeans React to Bessent Comments

Soybeans came under pressure following comments from Treasury Secretary Bessent, who stated that existing trade agreements mean “soybeans are all taken care of,” reducing expectations for additional Chinese purchases.

Markets were looking for signs of new demand out of ongoing U.S.–China discussions, but the lack of fresh buying targets signaled limited near-term upside.

With China already committed to prior purchase agreements and continuing to source heavily from Brazil, the comments reinforced the view that new demand from China may remain limited.

China Agreement

China did move forward with renewed U.S. beef import licenses, signaling cooperation, but no additional soybean or corn buying programs were introduced, however session will continue tonight.

Export Sales Highlight

Private exporters reported sales of 252,000 metric tons of soybeans to unknown destinations, split between the 2025/26 and 2026/27 marketing years.

Weekly export sales data showed mixed demand, with corn sales coming in below expectations. Soybean sales were near the low end of estimates, while wheat sales were within range.

Soybean oil and sorghum both posted net negative sales on the week, reinforcing the uneven demand picture across commodities.

 

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