Corn futures are mostly a nickel higher at midmorning.
· Corn futures firmed on this morning’s open and have trended higher throughout most of today’s session.
· USDA reported daily corn sales of 127,760 MT to Mexico for the 2024-25 marketing year.
· USDA rated 65% of the corn crop as “good” to “excellent” and 13% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop dropped 4.4 points to 368.1 the lowest rating of the growing season.
· Crop consultant Dr. Michael Cordonnier left his U.S. corn yield forecast at 183.5 bu. per acre, though he has a neutral to slightly lower bias as weather turned hotter and drier, noting if that pattern persists it could trim yields.
· December corn futures reversed yesterday’s losses and are seeking to close prices above resistance at $3.94 1/2. Support stands at $3.90.
Soybeans are trading 4 to 5 cents higher, and soymeal futures are mostly around $3.00 higher. Soyoil is narrowly mixed.
· Soybeans are higher on support from hot, dry weather as the crop matures.
· Forecasts call for hot temps to persist for the bulk of the work week before cooling during the weekend. Rains are expected to develop during the weekend and next week.
· USDA rated the soybean crop at 67% “good” to “excellent” and 9% “poor” to “very poor.” On the CCI, soybeans dropped 4.4 points 363.0, the lowest rating of the growing season.
· Cordonnier left his soybean yield at 53.5 bu. per acre, with production estimated at 4.61 billion bushels. He maintains a neutral bias going forward.
· Argentina is likely to plant more soybeans following last year’s disastrous leaf hopper plague, which caused a corn stunt disease outbreak impacting 2 million hectares of corn. A large portion of those hectares are likely to be switched to soybeans, says Cristian Russo, head of agricultural estimates at the Rosario Grains Exchange.
· November soybeans stalled against 20-day moving average resistance at $9.94 1/2. Bulls are seeking to maintain support at $9.80 1/4.
SRW wheat futures are mostly 9 to 11 cents higher, HRW is 8 to 9 cents higher and HRS futures are mostly 7 to 8 cents higher.
· SRW wheat futures rebounded from fresh contract lows earlier today amid corrective buying across the grain and soy markets.
· USDA rated 69% of the spring wheat crop as “good” to “excellent” and 10% “poor” to “very poor.” On the CCI, spring wheat crop fell 7.3 points to 372.9.
· Spring wheat harvest advanced past the half-way point, reaching 51% as of Sunday.
· December SRW wheat is struggling to overcome initial resistance at $5.40. Renewed selling would find support at $5.25 and then the contract low at $5.20 3/4.
Live cattle are sharply higher. Feeders are firmer in all but the expiring August contract.
· Cattle futures are building upon yesterday’s strength and trading near session highs.
· Last week’s cash cattle average fell $3.60 from the previous week to $185.54, the fourth consecutive weekly decline and the lowest average since the last week of April.
· Wholesale beef prices ended Monday lower, as Choice cutout sunk $1.44 to $315.90 and Select dropped 27 cents to $300.19.
· October live cattle futures are trading above downward trendline resistance from the July highs, marking support at $177.50. Further strength would find resistance at $179.30, the 20-day moving average.
Hog futures are slightly to sharply higher at midsession.
· October hog futures surged to fresh 2.5-month highs this morning as traders narrow discounts to the cash index.
· The CME lean hog index is down another 36 cents to $87.86 as of Aug. 23, extending the pullback from the seasonal peak on Aug. 1.
· Pork cutout has pulled back from recent gains, with cutout dropping $4.07 to $94.98, led lower by steep declines in hams and bellies.
· October lean hogs are targeting stiff resistance at $82.50, while support lies at $80.55.