Corn futures are mostly 3 cents lower at midmorning.
· Corn futures are posting followthrough weakness amid broad-based selling across commodities.
· Most of the Midwest will receive rain at one time or another during the next several days improving soil moisture after last week’s broad-based drying.
· USDA is pushing for eased tax credit requirements regarding crops used as feedstocks in the production of renewable fuels, according to Secretary Tom Vilsack. Current regulations for subsidies to produce sustainable aviation fuel (SAF) require farmers to plant cover crops, no-till farming and use of efficient fertilizers. The biofuels industry is awaiting guidance from the Treasury Department on the 45Z clean fuel credit, which will take effect in January.
· December corn posted a contract low at $3.90. Initial resistance stands at the 10-day moving average of $3.98 3/4.
Soybeans are mostly a dime lower, while soymeal futures are mostly around $3.00 lower. Soyoil is about 40 points lower.
· Soybeans are being pressured by favorable weather and renewed selling in soymeal.
· Most of the Midwest will receive rain at one time or another during the next several days, while temps are expected to remain below average.
· The California Air Resources Board (CARB) proposed significant changes to its Low Carbon Fuel Standard (LCFS), particularly affecting soy-based biofuels. The American Soybean Association expressed concerns about these changes.
· Five new renewable diesel production plants opened last year, boosting U.S. output of the diesel substitute and other emerging biofuels by 44% to 282,000 barrels-per-day (bpd), U.S. Energy Information Administration (EIA) data showed. Two renewable diesel plants opened in both the U.S. Gulf Coast and West Coast, while one facility opened on the East Coast, taking the countrywide total to 22, according to EIA.
· November soybeans posted a contract low at $9.55. Initial resistance stands at $9.75 1/4.
Wheat futures are mostly a penny to 3 cents lower.
· Wheat futures are mildly firmer on support from a weaker U.S. dollar.
· Germany’s wheat production is expected to fall 12.8% to 18.76 MMT as the crop suffered from repeated rain ahead of harvest, the country’s association of farm cooperatives said. The country’s total grain production is expected to fall 8.2% to 39.11 MMT. Germany is typically the European Union’s second largest wheat producer after France, which also suffered major crop losses due to excessive wetness through the growing season.
· Ukraine completed its wheat harvest totaling 21.7 MMT, the country’s ag ministry said. That was up 100,000 MT from last year. A total of about 28.5 MMT of grain had been harvested as of Friday, including 5.5 MMT of barley, the ministry said.
· December SRW wheat continues to find support at $5.43 1/4, while initial resistance stands at $5.55 1/2.
Live cattle and feeders are marking heavy losses at midmorning.
· Cattle futures are under heavy pressure amid technical selling.
· A limited number of cash cattle traded so far this week at weaker prices, though most feedlots continued to hold out in hopes of steady to possibly firmer bids. It’s possible the bulk of this week’s cash activity could take place after the cattle futures market closes.
· Wholesale beef values rose on Thursday, with Choice rising $2.06 to $316.94 while Select increased $1.53 to $302.03. Movement totaled 119 loads for the day.
· October live cattle have dropped below several levels of support, leaving next support at the Aug. 5 low of $176.35. Resistance stands at the 100-day moving average of $181.03.
Hog futures are moderately weaker at midsession.
· October hog futures are lower despite improving cash and wholesale fundamentals.
· The CME lean hog index is up 2 cents to $90.20 as of Aug. 14, ending an eight-day slide that saw the value decline $3.48.
· The pork cutout value rose 56 cents to $99.87, led by gains in primal butts, ribs and bellies. Movement totaled 335.9 loads for the day.
· October lean hogs are trading within Thursday’s upper range, with the 20-day moving average of $75.82 serving as support, while initial resistance stands at $77.31.