By Kirk Maltais

  • Corn for December delivery rose 1.5% at $4.36 1/2 a bushel on the Chicago Board of Trade Tuesday, rising after the USDA published its yearly Acreage and quarterly Grain Stocks reports.
  • Wheat for September delivery rose 1.3% to $5.87 1/2 a bushel.
  • Soybeans for November delivery rose 0.4% to $11.43 1/2 a bushel.

HIGHLIGHTS

Corn Confirmation: The USDA's report showed smaller stocks of corn than expected by analysts surveyed by The Wall Street Journal, while planted acres were slightly higher than expected. "Corn started lower on the day, until the USDA waved their magic wand," said analysts with Marex in a note. They add that trading is expected to revert back to future weather outlooks.

Source of Support: Wheat got the most attention after the release of the USDA reports. "Wheat is where the report bites," said Jake Hanley of Teucrium Trading in a note. He believes the data suggests that supply and demand for U.S. wheat is tighter than soybeans and corn, which seem more relaxed. "Small acres on a struggling crop is the friendliest setup in the report, in our view," said Hanley.

Curb Your Enthusiasm: Gains in grains following the USDA's yearly Acreage and quarterly Grain Stocks reports were pared back in trading this afternoon. "The market had an initial friendly reaction, but favorable growing weather has limited speculative buying post-report," said the Hightower Report in a note following release of the reports. Expectations for strong yields from acres planted in the spring weighed on all three row crops.

INSIGHT

Safety Net: Ahead of the USDA reports, corn was seen as not having a lot of room to move lower Tuesday. That's because the CBOT has trended lower in recent weeks, with risk premium from the war with Iran being sold and weather generally supportive for U.S. crops. "The downside risk from here is not believed to be that large regardless of what the report says as funds have already built a large net short and farmer selling interest is limited," said Doug Bergman of RCM Alternatives in a note.

Looking for Strong Yields: For both corn and soybeans, a plurality of states are poised to deliver "above trend line" yields--or yields stronger than the typical improvement yields see on a yearly basis, said Michael Cordonnier of Soybean & Corn Advisors. Much of the Corn Belt had adequate rainfall in June, but is expected to start July on a drier note.

AHEAD

  • General Mills will release its fourth-quarter and full-year 2026 earnings report at 7 a.m. ET Wednesday.
  • The EIA will release its Weekly Petroleum Status Update report at 10:30 a.m. ET Wednesday.
  • The USDA will release its monthly Grain Crushings report at 3 p.m. ET Wednesday.

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