Corn and soybean futures slid overnight, pressured by a combination of accelerating harvest activity and renewed concerns about international demand. According to the USDA, 18% of U.S. corn had been harvested as of Sunday, up from 11% the week prior, yet slightly trailing the five-year average of 19%. Leading the corn harvest are North Carolina (82%), Texas (79%), and Tennessee (69%), while Iowa and Illinois, the top-producing states, reported 15% and 21% completion, respectively. Crop conditions remain steady, with 66% of corn rated in good or excellent condition.

On the soybean front, 19% of the crop was harvested by Sunday, nearly double the 9% recorded a week earlier, though still 1 percentage point below the seasonal average. Louisiana (78%) leads the pace, followed by Illinois (21%) and Iowa (17%). The overall condition of soybeans improved slightly, with 62% now rated good to excellent, up from 61% the previous week.

Despite these solid agronomic indicators, markets remain nervous due to faltering export signals. Corn futures fell 1.75 cents to $4.1975 per bushel on the Chicago Board of Trade, while November soybeans dropped 3.5 cents to $10.07 per bushel. Soymeal declined 90 cents to $274.50/short ton, while soybean oil inched up to 49.76 cents per pound. Wheat also dipped, with December futures down 0.75 cents to $5.1875 and Kansas City wheat off 1 cent to $5.0725.

The downward pressure is closely tied to China's limited recent buying activity. Notably, the country hasn't purchased U.S. soybeans since May. A recent Reuters report further dampened sentiment, highlighting a stark fall in U.S. beef exports to China - dropping from $118 million in July 2024 to just $8.1 million this July. In contrast, Chinese imports of Australian beef surged to $221 million, reflecting a strategic shift away from U.S. suppliers.

USDA export inspections showed mixed results. Wheat inspections fell week-over-week to 738,604 metric tons but remained significantly above the 551,817 tons reported during the same week last year. Meanwhile, corn inspections rose to 1.53 million metric tons, well above last year's 1.15 million, and soybeans edged up to 593,956 metric tons, compared with 565,630 a week earlier.

Weather risks are adding another layer of uncertainty. Southern South Dakota and northern Nebraska face increased fire danger due to gusty winds (25-35 mph) and low relative humidity - dipping below 30% in parts of western South Dakota. Such conditions pose localized threats to crops and farm operations, especially in areas with dry grass or unharvested fields.

For U.S. producers, the coming weeks are critical. The interplay of harvest pressure, sluggish demand, and weather volatility will shape short-term pricing and marketing strategies. With the 2025 farm bill discussions and export competitiveness in focus, the industry is entering a pivotal phase where commodity prices, input costs, and policy decisions will be under intense scrutiny.