GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 7 to 10 cents lower.
Wheat: 3 to 5 cents higher.
GENERAL COMMENTS: Wheat continues to show relative while corn and soybeans saw followthrough selling overnight. Buying efforts increased in corn and beans into the break. The risk-on attitude continues in outside markets, as front-month crude oil futures continue to bounce off recent lows alongside the equity markets. The U.S. dollar index is trading around 200 points higher, though is still trading near this week’s lows.
Two unions representing soybean oil factory workers in Argentina announced a strike over wages on Tuesday, halting activity at soy processing plants. After failing to reach an agreement yesterday, the unions announced plans to continue the strike today and will discuss how long to extend the work stoppage if their wage demands aren’t met.
China imported 9.85 MMT of soybeans in July, down 1.26 MMT (11.3%) from June but up 270,000 MT (2.8%) from last year. Analysts expected soybean arrivals to reach 12 MMT to 13 MMT and challenge the all-time monthly record. Through the first seven months of the year, China imported 58.33 MMT of soybeans, down 1.3% from the same period last year. Given hefty soybean stocks, negative crush margins and weak demand from the livestock sector, China’s soybean imports are expected to slow through year-end.
Reuters reports EPA has confirmed it is investigating the supply chains of at least two renewable fuel producers, focusing on the origins of used cooking oil (UCO) used in renewable fuel production. According to EPA spokesman Jeffrey Landis, audits have been conducted since July 2023, evaluating where UCO was collected. These investigations are ongoing, and specific details or company names have not been disclosed. The probes began after EPA updated its domestic supply chain accounting requirements in July 2023. The increased scrutiny on UCO imports, particularly from countries like China, stems from concerns that these supplies might contain virgin palm oil linked to deforestation. Lawmakers have urged the administration to investigate, as UCO imports used for biodiesel production are eligible for credits under the Renewable Fuel Standard.
CORN: December corn futures saw followthrough selling overnight. Bulls are looking to overcome stiff downtrend resistance at $4.04, which is reinforced by Tuesday’s high at $4.09. Support comes in at the psychological $4.00 mark then the contract low of $3.95.
SOYBEANS: November soybean futures saw continued selling pressure overnight. Bulls are looking to overcome resistance at the 10-day moving average at $10.33 1/4, which capped Monday’s rally. Support stems from $10.16 1/2 then the recent for-the-move low at $10.13.
WHEAT: December SRW futures continue to grind higher. While daily gains have not been large, prices have closed higher five consecutive sessions. Resistance stands at $5.69 1/2 then $5.80, while bulls are trying to hold support at $5.62 3/4, the 10-day moving average, then $5.55 1/2 on a dip.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Live cattle futures and feeders are expected to open with a firmer tone as cash prices remain well above futures, though continued long liquidation could limit gains after the open. Strength in outside markets is likely to encourage buying in cattle futures today as a rebounding stock market showcases optimism in the marketplace for continued strength in the economy, keeping beef demand robust despite record prices in the meatcase. Wholesale beef prices dipped Tuesday, as Choice cutout dropped $2.13 to $315.81 and Select sunk 44 cents to $299.62, though movement surged to 181 loads.
HOGS: Lean hog futures are expected to open with a mostly weaker tone as cash fundamentals weaken. While prices firmed on Tuesday, October futures struggled to overcome initial resistance and closed off session highs. The CME lean hog index is down 26 cents to $93.33 as of Aug. 5, the second straight daily decline. Pork cutout fell $1.97 to $102.31, the lowest level since July 19. Losses in hams and bellies led cutout lower, though movement surged to 385.19 loads, indicating continued strong retailer demand.