Wheat Futures Fall as Weather Outlook Improves — Daily Grain Highlights

Wheat futures fell 1.7% to $6.35 a bushel as improved weather conditions brought rainfall to dry areas. Corn and soybeans also saw declines. Traders are assessing U.S. crop conditions, which appear favorable. Meanwhile, geopolitical tensions in the Middle East and agricultural trade agreements with China are influencing market dynamics. Export inspections for corn and soybeans increased from the previous week, indicating stronger demand.

By Kirk Maltais

--Wheat for July delivery fell 1.7% to $6.35 a bushel on the Chicago Board of Trade Tuesday, as dry areas receive much-needed rainfall over the long weekend.

--Corn for July delivery fell 1.1% to $4.58 a bushel.

--Soybeans for July delivery fell 0.9% to $11.85 1/2 a bushel.

HIGHLIGHTS

Entering the Summer: With Memorial Day passed, grain traders are assessing the status of U.S. crops amid the start of the summer. "The months of April and May were no doubt very good for early germination and from the roadside crops appear to be getting off to a good start, today's condition report should indicate that nearly all crops are in the ground and [good/excellent condition] should be in line with the 5 year average," said Gary Sandlund of Futures International in a note.

No Deal: A cease-fire deal between the U.S. and Iran failed to materialize over the long weekend, with headlines out of the region still a mover for futures. "The U.S./Iran conflict is fluid," said AgMarket.net in a note. "The U.S. carried out self-defense strikes in southern Iran as Iran tried to place mines in the Strait of Hormuz." Continued fighting and an extended closure of the Strait of Hormuz makes inflation concerns that much more acute.

INSIGHT

Fresh Meat: New headlines are needed to spark larger moves in grain futures, said Brady Huck of EmpowerAg. "The grain market still awaits a bullish catalyst," he said. "With funds holding sizeable long positions in the grains, it seems the path of least resistance right now is a slow exodus of long positions by the funds until a bullish story." How crude oil reacts to the back-and-forth in peace negotiations in the Middle East may be one factor that grain traders monitor.

Wide Range: On top of developments in the Middle East, markets are also watching the status of agricultural trade agreements with China. While the White House did announce a new wave of buying agreed to by China, which state news sources there did confirm to some degree, the question of "when" remains for Chinese purchasing. China did lift HPAI-related export controls on poultry coming from 17 U.S. states, which is a good sign for continued cooperation between the two nations, said Jim Wiesemeyer of Ag Bull Trading in a note.

Higher Inspections: Export inspections of U.S. corn and soybeans are up from the prior week, according to USDA data. In its latest Grain Export Inspections report published Tuesday, the USDA said that corn export inspections for the week ended May 21 totaled 1.58 million metric tons, while soybean inspections totaled 571,620 tons. Both are up from inspections reported last week, as well as inspections seen at this time last year.

AHEAD

--Hormel Foods will release its second-quarter 2026 earnings report at 6:30 a.m. ET Thursday

--The EIA will release its Weekly Petroleum Status Update report at noon ET Thursday.

--The USDA will release its weekly export sales report at 8:30 a.m. ET Friday.

--The USDA will release its monthly Agricultural Prices report at 3 p.m. ET Friday.

--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.

Write to Kirk Maltais at kirk.maltais@wsj.com

(END) Dow Jones Newswires

May 26, 2026 15:06 ET (19:06 GMT)