Corn futures are mostly 3 to 5 cents lower at midmorning.
· Corn futures rebounded slightly from overnight weakness though they remain modestly lower.
· Restricted rainfall is expected across the Midwest, says World Weather Inc. Scattered showers will keep the Corn Belt from being totally dry, but widespread rainfall is not expected. Current soil moisture is expected to carry the crop through the dry spell without much crop stress.
· USDA reported export inspections of 894,295 MT (35.2 million bu.), down 312,404 MT from the previous week.
· December corn futures continue to trend lower. The contract low of $3.85 1/2 from earlier today marks support, while resistance lies at $3.90.
Soybeans are trading around a penny higher, while soymeal futures are modestly weaker. Soyoil is about 60 to 75 points higher.
· Soybeans recovered from overnight weakness amid support from soyoil.
· Above-normal temperatures and a dry forecast have encouraged corrective buying. Forecasts call for seasonal to above-normal temperatures across the Plains, Corn Belt, Delta and Southeast for most of the week, says World Weather Inc.
· USDA reported export inspections of 411,165 MT (15.1 million bu.), up 5,537 MT from the previous week.
· November soybeans are testing initial resistance at $9.75, which is backed by $9.84 3/4. Support resides at $9.60 1/2.
SRW wheat futures are mostly 5 to 6 cents lower, HRW is 1 to 2 cents lower and HRS futures are mostly a nickel lower.
· Wheat futures marked a fresh contract low overnight but saw moderate corrective buying this morning, following corn off overnight lows.
· USDA reported export inspections of 537,179 MT (19.7 million bu.), up 164,472 MT from the previous week.
· The Canadian rail strike being called off following a Canada Industrial Relations Board decision has negated much of the strikes impact on the wheat market. This ruling follows a shutdown of the Canadian rail system due to lockouts over issues like worker scheduling and compensation. CIRB’s order requires the resumption of operations by Aug. 26 and extends the terms of the previous labor agreement until new contracts are finalized through arbitration, which is scheduled to begin on Aug. 29.
· December SRW wheat saw a fresh contract low, marking initial support at $5.22. Resistance serves at $5.35 1/2.
Live cattle and feeders posting strong gains at midmorning.
· Cattle futures are surging this morning, negating much of last week’s loss.
· USDA’s Cold Storage Report Friday afternoon showed robust demand for beef, as stocks dropped 799,000 lbs. from June, whereas the five-year average is a 10.8-million-lbs. increase.
· Wholesale beef prices have stabilized, with Choice firming $1.35 to $317.34 while Select fell $1.57 to $300.46 on Friday.
· October live cattle futures are testing downtrend resistance at $178.00, while initial support lies at $176.00.
Hog futures are near unchanged at midsession.
· October hog futures marked a fresh two-and-a-half month high this morning though struggled to maintain gains.
· Traders have been encouraged by rebounding pork demand, noted by USDA’s Cold Storage Report, which showed pork stocks dropping 24.2 million lbs. in July, far greater than the five-year average 7.2-million-lb. decline for the month.
· Pork cutout surged for the second consecutive day, with whole cutout rising $2.62 as all cuts except ribs posted gains on Friday.
· Weakness in the CME lean hog index has limited strength, as the index fell another 61 cents to $88.22 as of Aug. 22.
· October lean hogs were capped by resistance at $80.50, while $79.50 serves as initial support.