Zaner Early Wire

Technical selling and weak oil prices send July Corn sharply lower

July corn futures came under heavy technical pressure Wednesday, falling nearly 10 cents to settle at 465.75. 

December corn futures also finished lower, down roughly 8.5 cents, as the entire complex faced broad selling. A sharp drop in crude oil tied to advancing US-Iran negotiations weighed on risk assets and grains. Traders also reacted to China’s clarification that recent U.S. agricultural purchase targets remain a “guiding” figure rather than a firm commitment.

Lack of China purchase details and weaker energy prices lead to selling

The supposed trade deal between U.S. & China (China promising to buy $17B worth of agricultural products from the U.S.), while sounding good initially, is still lacking details or confirmation from China. This, coupled with a lower crude oil market, sent bulls to the sidelines on Wednesday across the entire soy complex. It's likely that we won't hear anything "official" from China: we'll just have to watch and see if any sales materialize. As long as the possibility exist for larger purchases, the complex may not be able to take back all the recent gains. While some areas in the Northwest Corn belt could use some rain, other areas are receiving way too much, hurting planting and replanting efforts in some areas.

Lower as skepticism over potential Chinese purchases conflicts with smaller U.S. supply.

July Chicago wheat posted an 18 1/2 cent range on Wednesday, carving out a low of 655 1/2 and closing at 660 1/2, down 6 3/4 for the day. Slight hangover in the agricultural markets after Sunday Funday. Reality appears to be setting back in, or at least a more sober estimate of the fundamentals? Either way, price action is lower as the market searches for confirmation if the Chinese will actually buy U.S. wheat. Additionally, the rally in all 3 wheat categories has many feeling U.S. prices are not competitive globally. Another recent round of imports from Poland seems to support this contention: good headlines, but how many end users in U.S. can source wheat from overseas. Export sales for Thursday have old crop at 0-200,000 mt. 2026/2027 at 100,000-350,000 mt. 

Cattle futures sag as on-feed numbers expected to rise from year ago

On Wednesday, August live cattle futures fell by $1.95 to $254.30 per hundredweight, while August feeder cattle "took the lead" again, increasing by $2.12 to $365.77. Cargill initiated a lockout at the Fort Morgan beef packing plant in Colorado following a contract rejection, which contributed to the downward trend earlier in the day. Choice box beef prices rose by $3.61 on Wednesday.

Despite the uncertainty, feeder cattle were able to close higher. In recent weeks and months, it has become evident that whether dealing with cattle, hogs, or corn, it is crucial to understand your costs, determine your risk tolerance, and manage it effectively. All agricultural markets are highly volatile, and anything can happen at any moment.

U.S. equity index futures staged a strong rebound on Wednesday, May 20, shaking off recent pullbacks. The June E-mini S&P 500 futures rose nearly 1%, while June E-mini Nasdaq-100 futures gained about 1.57%.

This rally was fueled by a sharp drop in crude oil prices and retreating Treasury yields, which eased inflation and rate concerns. Tech and discretionary stocks led the charge, with investors positioning ahead of Nvidia’s after-hours earnings.

WTI July 2026 crude futures (CLN26) were highly volatile, trading down to a low of 96.94 before settling at 98.26, a drop of roughly 5.9 points, or over 5.6%. The selloff was driven by optimism that the U.S. and Iran were in the “final stages” of talks, raising hopes for reduced tensions and eventual relief in the Strait of Hormuz. A softer global oil demand outlook in the latest EIA Short-Term Energy Outlook added to the pressure.