Corn futures are mostly 2 cents higher at midmorning.
· Corn futures are modestly firmer amid general short-covering across the grain and soy complexes.
· Ukraine’s corn production may fall to 20 MMT to 21 MMT from around 30 MMT in 2023 if drought continues, producer group Ukrainian Agrarian Council told Reuters. Most of Ukraine experienced a heatwave in July, which producers expect will decrease the yield of late crops by around 30%.
· Ethanol production averaged 1.072 million barrels per day (bpd) during the week ended Aug. 9, up 5,000 bpd (0.5%) from the previous week and 0.3% above last year. Ethanol stocks declined 413,000 barrels to 23.354 million barrels.
· December corn futures are trading within Tuesday’s range, with support at $3.94 and backed by Monday’s low of $3.90 1/4. Initial resistance stands at the 10-day moving average of $4.00 1/2.
Soybeans are mostly 7 cents higher, while soymeal futures are mostly $2.00 to $3.00 higher Soyoil is narrowly mixed.
· Corrective gains are being seen in soybean and soymeal futures after a week-long selloff.
· World Weather Inc. notes a timely period of wetter weather continuing into Friday will restore some of the soil moisture and improve conditions for crop development in the drier areas of the Midwest. Rain will be most important in areas from southeastern South Dakota into northwestern Iowa as well as from central to eastern Ohio.
· Losses in the crude oil market are limiting buyer interest in soyoil.
· November soybeans marked a new contract low at $9.55 1/4 before rebounding. Initial resistance stands at $9.80 1/2.
Winter wheat futures are mostly a penny to 5 cents higher, with SRW contract leading gains. HRS futures are steady to a penny higher.
· Wheat futures are favoring the upside but continue to trade mostly sideways amid looming technical resistance.
· This year’s rain-soaked French soft wheat crop that will be the smallest since the 1980s is also showing mixed milling quality, with satisfactory protein levels close to last year but erratic test weights, the country’s ag ministry said.
· Egypt’s push for delayed payment terms backfired in its bid to secure 3.8 MMT of wheat, as it only purchased 380,000 MT earlier this week. GASC, Egypt’s state wheat buyer required 270-day letters of credit, which led to higher-than-expected offers and limited the purchase volume. Reuters reported Tuesday GASC is in private talks with exporters to buy 30 cargoes (up to 1.8 MMT) of wheat.
· December SRW wheat continues to find support at $5.46 1/2, while initial resistance stands at the 10- and 20-day moving averages, both currently trading around $5.60 1/2.
Live cattle are moderately higher, while feeders are posting stronger gains at midmorning.
· Cattle futures are higher amid an improving technical posture and limited selling interest due to heavy discounts to the cash market.
· Cash cattle trade has been light so far this week at lower prices.
· Wholesale beef prices firmed for a third straight day, with Choice rising $1.10 to $316.93 and Select increasing 44 cents to $300.61 on Tuesday. Despite the stronger prices, movement increased to 138 loads, signaling active retailer buying.
· October live cattle have extended above initial resistance at $181.55, with additional resistance standing at $182.32. The 10-day moving average of $180.48 is serving as initial support.
Hog futures are sharply higher in most contracts at midsession.
· August hog futures are solidly firmer despite fading cash fundamentals. The contract expires at noon today and will be settled against the cash index on Friday.
· The CME lean hog index is down another 58 cents to $90.34 as of Aug. 12, the seventh straight daily decline. During that span, the index has fallen $3.30 after posting a seasonal peak on Aug. 1.
· The pork cutout value rose 6 cents on Tuesday to $100.33. Movement was solid at 334.0 loads.
· October lean hogs have moved above the 40- and 10-day moving averages of $74.475 and $75.030, with resistance now at the 20-day moving average of $75.575. Initial support lies at $72.890.