Corn producers: Increase 2023-crop sales... Corn futures are eroding technically and showing no signs of finding a bottom. With August being a historically bearish month and time winding down to finish old-crop sales, we advise hedgers and cash-only marketers to sell another 10% of 2023-crop in the cash market to get to 70% sold.
Corn futures are a penny to 2 cents lower at midmorning.
· Corn futures are extending losses for a third straight session amid technical selling.
· USDA reported net corn sales of 167,900 MT for 2023-24 and 710,900 MT for 2024-25 for the week ended July 25. Old-crop sales were a marketing-year low, down 49% from the previous week and 60% from the four-week average, and shy of pre-report expectations of 275,000 to 600,000 MT. Net new-crop sales were near the upper end of the pre-report range of 400,000 to 800,000 MT.
· Analysts expect USDA to report corn-for-ethanol use at 450 million bu. during June, which would be down 3.7 million bu. (0.8%) from May but up 7.9 million bu. (1.8%) from last year.
· December corn futures dropped to a new contract low at $3.95. Next support is at the $3.90 level. The psychological $4.00 mark is near-term resistance.
Soybeans are mostly 7 to 9 cents lower, while soymeal futures are mostly 50 cents to $1.00 higher. Soyoil is around 110 cents lower.
· Soybeans are lower, with heavy selling in soyoil futures providing pressure.
· USDA reported daily soybean sales of 132,000 MT to China for 2024-25.
· USDA reported net old-crop soybean sales of 376,400 MT during the week ended July 25, up notably from the previous week and four-week average, and exceeding pre-report expectations of 75,000 to 300,000 MT. Net new-crop sales of 632,100 MT were within analysts’ pre-report range expectations from 300,000 to 900,000 MT.
· Analysts expect USDA to report soybean crush totaled 184.4 million bu. during June, which would be down 6.9 million bu. (3.6%) from May but up 10.2 million bu. (5.8%) from last year.
· November soybeans have extended to a fresh near-term low. Support at $10.14 1/2 is backed by $10.06 3/4. Initial resistance is at $10.30 1/2.
SRW wheat futures are 1 to 2 cents lower, while HRW is mixed and HRS is a penny higher.
· Wheat futures are trading sideways in consolidative trade.
· USDA reported net weekly wheat sales of 286,600 MT for the week ended July 25, down 7% from the previous week and 41% from the four-week average. Sales were near the low end of the pre-report range of expectations from 250,000 to 550,000 MT. Exports during the week totaled 454,200 MT, up 67% from the previous week and 21% from the four-week average.
· Dry areas from eastern Ukraine to Russia’s Southern Region are expected to get some rain during mid-week next week before drier and warmer weather resumes in the region.
· December SRW wheat futures are consolidating between initial support at $5.42 1/2 and the 10-day moving average of $5.59 1/4.
Live cattle and feeders are sharply lower at midsession.
· August live cattle are facing heavy pressure amid corrective selling from last week’s high.
· Choice boxed beef prices firmed 29 cents on Wednesday, while Select dropped $1.22. Spot movement totaled 145 loads, signaling there’s still solid retailer demand even though its into a timeframe when beef demand slows.
· USDA reported net beef sales of 17,700 for 2024, up 32% from the previous week and 35% from the four-week average.
· October live cattle have extended below the 10- and 20-day moving averages of $186.36 and $185.35, with additional support at the 40-day moving average of $184.39 being challenged. Initial resistance stands at $187.325.
Hog futures are slightly higher at midsession.
· August hog futures are mostly unchanged, with support stemming from strengthening cash fundamentals.
· The CME lean hog index is up another 49 cents to $93.08 as of July 30, marking the 13th straight daily gain. During that span, the cash index has firmed $4.70.
· The pork cutout value slid another 72 cents on Wednesday to $104.88, led by a decline in primal hams, ribs and picnics. Movement totaled 261.7 loads for the day.
· USDA reported net pork sales of 31,500 MT, up 5% from the previous week but down 10% from the four-week average.
· August lean hogs are testing resistance at the 10-day moving average of $92.62, while additional resistance stands at $93.18. Meanwhile, initial support lies at $91.90.