Corn: 5 to 6 cents higher.
Soybeans: 13 to 18 cents higher.
Wheat: 1 cent lower to 3 cents higher.
GENERAL COMMENTS:
Soybean futures rose to the highest levels in over a week overnight as recent Chinese purchases fueled buying. Corn futures were also higher as traders awaited USDA’s August crop report tomorrow, while wheat futures were mixed. Malaysian palm oil futures surged over 7%, while Nymex crude oil futures fell over 1%.
USDA reported a daily soybean sale of 132,000 MT to China for 2021-22. That’s the fifth consecutive day of soybean sales to China and/or unknown destinations.
Much of the Midwest is in the grips of extreme heat this week. Hot, humid conditions are expected to produce strong to severe thunderstorms the next several days in southern and eastern areas of the Corn Belt, with the Great Lakes area most at risk today, the National Weather Service reported. Rains are likely for western and northern Minnesota, eastern South Dakota, and southeastern North Dakota Aug. 18-22.
Refinitiv Commodities Research (CRF) slashed its 2021-22 Canadian wheat crop estimate by 4% to 29.1 million metric tons (MMT), citing continued heat across much of Western Canada and continued dryness. “Unfavorable hot and dry conditions continued across much of the Southern Prairies over the past two weeks, depleting soil moisture reserves even further,” CRF reported.
Smithfield Foods’s plant in Tar Heel, North Carolina, and Rava Forwarding in Laredo, Texas, were both cleared to resume shipments to Mexico as of Aug. 6. The plants have been barred from shipping meat products since June 16 for the Smithfield facility and June 18 for the Rava facility.
A group of Thailand importers issued an international tender to buy up to 139,500 MT of animal feed wheat. South Korea’s Major Feedmill Group issued an international tender to buy up to 210,000 MT of animal feed corn.
CORN: December corn futures overnight rose as high as $5.60 1/4, the highest since $5.65 1/4 on Aug. 3, ahead of USDA’s Crop Production Report on Thursday that’s expected to show estimated U.S corn production down about 1.1% from USDA’s July projection of 15.165 billion bushels. Estimated average yields are expected to be 177.6 bu. per acre, based on a Reuters poll, down from USDA’s July estimate of 179.5 bu. per acre.
SOYBEANS: November soybeans overnight reached $13.54 3/4, the highest since $13.59 on Aug. 2, extending strength triggered by several Chinese purchases over the past week. USDA is expected to estimate the U.S. soybean harvest at 4.375 billion bu., based on the average analyst estimate, down from its 4.405-billion-bu. projection in July.
WHEAT: HRW and SRW futures were lower during much of overnight trade before working well off session lows as trade was suspended. The market continues to find support from expectations for stronger exports and smaller global supplies. Wheat futures traded in Paris reached contract highs, reflecting adverse weather hampering France’s harvest.
CATTLE: Steady-firmer
HOGS: Steady-weaker
CATTLE: Live cattle futures may be supported by the wholesale beef market, which continues its three-week rally. Choice boxed beef values jumped another $5.52 yesterday to $305.32, the highest since June 24 and the 14th consecutive daily gain, according to USDA data. Boxed beef prices are up 15% since hitting a 3 1/2-month low July 20. Live slaughter-ready steers in five top feedlot areas averaged $124.60, compared to last week’s average of $123.83.
HOGS: Lean hog futures are expected to face followthrough pressure from recent sharp losses, spurred by expectations for higher pork supplies this fall. Carcass cutout values fell $1.84 yesterday to $124.40, the lowest since July 24 and led by a drop of nearly $12 in ham prices. Movement was strong for the second day in a row, at 341 loads. National direct carcasses yesterday averaged $99.20, up 14 cents from Tuesday. Nearby August lean hog futures remain at a discount to the CME lean hog index ahead of Friday’s contract expiration.