GRAIN CALLS
Corn: 3 to 5 cents lower.
Soybeans: 6 to 8 cents lower.
Wheat: Winter wheat 3 to 5 cents lower; HRS steady to 2 cents lower.
GENERAL COMMENTS: Corn and soybeans saw selling pressure most of the overnight session while wheat saw relative strength, though faded into the break. Outside markets are mixed this morning as front-month crude oil futures continue to pull back from Monday’s high and the U.S. dollar index is trading over 250 points lower.
USDA is pushing for eased tax credit requirements regarding crops used as feedstocks in the production of renewable fuels, according to Secretary Tom Vilsack. Current regulations for subsidies for the production of sustainable aviation fuel (SAF) require farmers to plant cover crops, no-till farming and use of efficient fertilizers. The biofuels industry is awaiting guidance from the Treasury Department on the 45Z clean fuel credit, which will take effect in January. USDA is working on a proposal with the aim of giving farmers flexibility to “choose from a menu of activities and actions” under the new rules, Vilsack said during an ethanol conference in Nebraska. Another goal is to make sure that crops potentially benefiting from the new subsidies are not restricted to corn and soybeans, he said. Vilsack also warned against a push to prevent U.S. biofuels made with foreign ingredients from reaping the benefits of the 45Z tax credit, saying it could hurt American trade.
Five new renewable diesel production plants opened last year, boosting U.S. output of the diesel substitute and other emerging biofuels by 44% to 282,000 barrels-per-day (bpd), U.S. Energy Information Administration (EIA) data showed. Two renewable diesel plants opened in both the U.S. Gulf Coast and West Coast, while one facility opened on the East Coast, taking the countrywide total to 22, according to EIA. Three biofuel plants shuttered over the past year, one each on the East Coast, West Coast and in the Midwest, the EIA data showed. One plant ethanol shuttered on the East Coast but a larger facility opened on the Gulf Coast, boosting output capacity by 2% to 1.18 million bpd from the 187 plants in operation at the start of this year.
Ukraine completed its wheat harvest totaling 21.7 MMT, the country’s ag ministry said. That was up 100,000 MT from last year. A total of about 28.5 MMT of grain had been harvested as of Friday, including 5.5 MMT of barley, the ministry said. The ministry raised its total grain production forecast by 3.6 MMT to 56 MMT, while the country’s oilseed crop is expected to be an additional 11 MMT.
Canadian Labor Minister Steven MacKinnon rejected a request by Canadian National Railway to initiate binding arbitration in a labor dispute with the Teamsters union. In a letter to CN Rail’s lawyers, MacKinnon said it was the shared responsibility of the company and the union to negotiate in good faith. Talks between CN Railway and Canadian Pacific Kansas City – Canada’s two largest rail companies – and the Teamsters remain deadlocked. The companies say they will start locking out workers on Aug. 22 if they cannot reach a labor deal, while the union says it is ready to call a strike for that date.
CORN: December corn futures saw followthrough selling overnight. Support stems from the contract low of $3.90 1/4 with additional backing from $3.82. Bulls are seeking to overcome resistance at $3.95 before tackling the 10-day moving average at $3.99.
SOYBEANS: November soybean futures traded lower overnight. Bulls are seeking to hold support at the contract low at $9.55 1/4 which is reinforced by the psychological $9.50 mark. Resistance stems from $9.68 1/2 then the 10-day moving average at $9.88 1/2.
WHEAT: December SRW futures traded on either side of unchanged overnight. Significant support remains at $5.48 and is reinforced by the contract low of $5.39 1/2. Resistance stems from $5.55 with reinforcement from the 20-day moving average at $5.62.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Higher.
CATTLE: Live cattle futures and feeders are expected to open with a mostly firmer tone, though some followthrough selling from Thursday’s weakness could limit gains after the open. A limited number of cash cattle traded so far this week at weaker prices, though feedlots continue to hold out in hopes of steady to possibly firmer bids. Cash trade could be pushed until after the close today, providing little guidance to the futures market. Wholesale beef prices rebounded on Thursday, as Choice cutout firmed $2.06 to $316.94 and Select rose $1.53 to $302.03, though movement slowed modestly to 119 loads.
HOGS: Lean hog futures are expected to open higher on continued technical buying and improving cash fundamentals. October futures have shown robust strength the last couple of days as the slide in the CME lean hog index stalled. The index is up 2 cents to $90.20 as of Aug. 14, ending an eight-day slide during which the index declined $3.48. While the uptick in the index could prove short-lived, recent strength has begun to change the bearish attitude surround the hog and pork market. Pork cutout firmed 56 cents to $99.87 as all cuts except picnics firmed on Thursday and movement remained strong at 335.9 loads.