GRAIN CALLS
Corn: 5 to 7 cents lower.
Soybeans: 18 to 21 cents lower.
Wheat: Winter wheat 15 to 17 cents lower; HRS 10 to 12 cents lower.
GENERAL COMMENTS: Corn, soybeans and wheat each saw sustained selling pressure overnight. Corn futures negated Friday’s gain while soybeans and wheat forged fresh lows. Outside markets are mixed as front-month crude oil futures and the U.S. dollar index are both trading modestly higher. The S&P 500 is poised to open near Friday’s record high.
There will be one more day of heat today before cooler temperatures move into the Corn Belt for the remainder of the week, along with scattered rains. The Southern Plains, Delta and Southeast will likely see scattered rains as well.
Analysts expect the National Oilseed Processors Association (NOPA) to report its members crushed 177.9 million bu. of soybeans during June. That would be down 3.1% from May but up 7.8% from year-ago and a record for the month. Soyoil stocks are expected to total 1.724 billion lbs., which would be down 3.2% from May and 1.2% from year-ago.
Congress on recess this week due to the Republican National Convention July 15-19. But the key focus for the week occurred Saturday afternoon when an assassination attack was made on former President Donald Trump during a rally in Pennsylvania. Trump reportedly revised his convention speech to emphasize unity. The economic focus will be today’s speech by Fed Chair Jerome Powell to the Economic Club of Washington and the Fed’s Beige Book on Wednesday highlighting economic conditions in the 12 districts. The key agricultural report will be USDA’s Cattle on Feed Report Friday afternoon.
CORN: December corn futures traded lower overnight. Initial support lies at $4.07 1/4 with further selling eyeing support at $4.03. Bulls are seeking to overcome resistance at $4.16 3/4, the 10-day moving average, with further buying seeking to overcome $4.24 resistance.
SOYBEANS: November soybean futures saw continued selling overnight. Support lies at the overnight low of $10.44 then the psychological $10.25 mark. Prices are oversold which could lead to corrective buying, targeting resistance at $10.50 then $10.58 1/2, with further buying eyeing resistance at $10.67 3/4.
WHEAT: December SRW futures saw sharp selling pressure overnight. Prices marked a fresh contract low. Resistance steams from the prior low of $5.75 then the 10-day moving average at $5.88 3/4. Bulls are seeking to hold support at the psychological $5.56 3/4 mark then the psychological $5.50 mark.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Live cattle and feeders are expected to open with a mostly firmer tone as futures continue to maintain choppy uptrends on the daily bar chart. The spread between cash and futures is over $10.00, which is likely to limit the downside in futures in the near term. Wholesale beef was mixed on Friday as Choice cutout firmed 41 cents to $322.06 and Select sunk $1.07 to $302.31. The recent weakness in beef cutout has placed estimated packer cutting margins in the red, which could limit packer willingness to continue to purchase cattle at near-record prices. This week’s Cattle on Feed Report is likely to push trade late into the week.
HOGS: Lean hogs are expected to open with a mostly weaker tone as futures are likely to resume the downtrend from the May high. After two days of solid buying, sellers reemerged in the latter half of Friday’s session, which could bleed into today’s session. The CME lean hog index is down 27 cents to $88.38 as of July 11, extending the seasonal pullback to the lowest level since April 9. Pork cutout firmed $2.61 to $98.84 Friday, driven by a $10.20 jump in hams, though all cuts except ribs posted gains on the day.