Corn futures are modestly favoring the downside at midsession.
- Corn futures recovered from overnight losses though they are struggling to garner much upside momentum.
- USDA reported daily corn sales of 100,000 MT to Colombia and 165,735 MT to Mexico for the 2024-25 marketing year.
- China asked domestic traders to curb foreign grain purchases, expanding the order a few months ago from corn to barley and sorghum, people familiar with the situation told Bloomberg.
- Nearly all the Corn Belt is forecast to receive at least some rain by Saturday, helping negate some of the recent moisture loss due to excessive heat.
- December corn futures have struggled to overcome 10-day moving average resistance at $3.94. Support at $3.90 has limited the downside so far today.
Soybeans are trading 8 to 9 cents lower, and soymeal futures are mostly around $3.00 $4.00 lower. Soyoil is modestly higher.
- Soybeans are lower on heavier-than-expected rains across portions of the Midwest on Tuesday, with additional scattered rains falling on areas of the eastern Corn Belt this morning.
- Hot temps are expected to persist into Thursday before cooling into the weekend to more seasonal temperatures next week.
- USDA reported daily soybean sales of 264,000 MT to China for 2024-25.
- November soybeans dropped below support at $9.80 1/4. Resistance is at the 20-day moving average, currently at $9.93 1/4.
SRW wheat futures are mostly 5 to 7 cents higher, HRW is 7 to 9 cents higher and HRS futures are mostly 6 to 8 cents higher.
- SRW wheat futures are building on Tuesday’s corrective gains.
- Stats Canada estimated Canadian all wheat production at 34.4 MMT, up 4.3% from last year but lower than the 35.1 MMT analysts polled by Reuters expected.
- Germany’s wheat production is expected to fall 12.7% to 18.80 MMT due to poor weather, especially persistent late-season rains, the agriculture ministry said. The EU is already looking at reduced exports due to France’s disaster crop.
- December SRW wheat challenged resistance at $5.41 1/4, the 10-day moving average. Support is at $5.35 1/2.
Live cattle and feeder futures are choppy at midmorning.
- Cattle futures recovered from a lower opening this morning though have struggled to push above Tuesday’s highs.
- Cash cattle negotiations have been slow start as expected. Forward purchases and contracted supplies have enabled packers to hold off on initiating bids.
- Wholesale beef priced ended Tuesday mixed with Choice cutout sinking $3.93 to $311.97 and Select firming 6 cents to $300.25, while movement was solid at 167 loads.
- October live cattle futures have struggled against psychological resistance at $180.00, but the 10-day moving average at $178.20 continues to serve as solid support.
Hog futures are mostly higher at midsession.
- October hog futures are trading in a relatively tight range in choppy trade.
- Pork cutout recovered from some of Monday’s steep drop, rising $1.07 to $96.05, as all cuts except ribs posted gains on the day.
- The CME lean hog index is down another 4 cents to $87.82 as of Aug. 26, though that is the smallest daily decline since a one-day uptick on Aug. 14.
- October lean hogs are struggling to overcome Tuesday’s high of $82.075, though losses have largely been limited by support at $78.80.