Corn producers: Finish 2023-crop sales... Today marks the end of the 2023-24 marketing year for corn. We advise hedgers and cash-only marketers to sell the final 20% of old-crop in the cash market to get to 100% sold as we don’t carry inventory from one year to the next.
Corn futures are 1 to 2 cents higher at midsession.
· Corn futures pulled back on this morning’s open but have since resumed higher.
· Rain fell across much of the Midwest overnight and brought cooler temperatures as the front passed. Cooler temperatures and ample soil moisture should allow for ample grain fill.
· EPA has extended the emergency fuel waivers through Sept. 15 for Illinois, Indiana, Michigan and Wisconsin. These states can make the changeover to winter gasoline without having to shift back to summer fuel due to shortages caused by the outage of Exxon Mobil’s refinery in Joliet, Illinois.
· December corn futures are working higher for the second consecutive day and are seeking to overcome resistance at the psychological $4.00 mark. Support stems from the 10-day moving average at $3.95.
Soybeans are trading mostly steady to 2 cents higher, and soymeal futures are narrowly mixed. Soyoil is mostly 30 to 50 points lower.
· Soybeans struggled to maintain early morning gains, facing selling pressure at the start of daytime trade.
· USDA reported daily soybean sales of 132,000 MT to China and 100,000 MT soymeal to Colombia, each during the 2024-25 marketing year.
· The U.S. Trade Representative’s office stated they will be making a decision over tariffs on Chinese goods covering green energy, metals, minerals, port cranes, medical supplies and semiconductors in the coming days.
· The American Soybean Association (ASA) submitted critical comments to the California Air Resources Board (CARB) regarding proposed changes to the Low Carbon Fuel Standard (LCFS). ASA expressed deep concern over measures such as capping soybean and canola oil use in biofuels and imposing burdensome sustainability requirements, arguing that these changes lack scientific justification and could harm soy-based biofuel production.
· November soybeans came well off intraday highs though support at $9.92 3/4 stalled selling efforts. Bulls are seeking to close prices above psychological $10.00 resistance.
SRW wheat futures are mostly 2 to 4 cents higher, HRW is around unchanged and HRS futures are mostly 3 to 4 cents higher.
· SRW wheat futures have continued to show relative strength, even as corn and soybeans futures came off intraday highs.
· U.S. wheat export sales have started to tick up, reflecting a tightening world balance sheet. While a tighter world balance sheet is historically bullish wheat, the effects of tighter world carryout have not yet greatly affected wheat prices.
· The European Commission lowered its soft wheat production estimate by 4.7 MMT to 116.1 MMT and cut all wheat exports 6 MMT to 26.0 MMT, which would be the lowest since 2018-19.
· December SRW wheat is trading higher for the fourth consecutive session, targeting resistance at $5.53. Support is at $5.44.
Live cattle and feeder futures are firmer at midsession.
· Cattle futures opened higher though have struggled to build gains.
· Cash cattle trade got underway at mostly $1.00 to $2.00 lower prices on Wednesday and Thursday.
· Wholesale beef prices ended Thursday mixed, with Choice cutout firming $1.37 to $308.66 and Select falling $1.44 to $296.19.
· October live cattle futures continue to face resistance at $179.00, the 20-day moving average. Bulls are seeking to hold support at $177.50.
Hog futures are modestly higher at midsession.
· October hog futures marked a fresh for-the-move high as prices continue to trend higher despite seasonally weak cash fundamentals.
· The CME lean hog index is down another 41 cents to $87.04 as of Aug. 28. Continued futures strength is narrowing the discount held in futures, implying relative cash market strength in September.
· Pork cutout ended Thursday 61 cents higher at $95.89, with limited price movement between cuts. Retail buying has been tepid as movement slipped to 249.6 loads.
· October lean hogs are trading at the highest mark in nearly three months, targeting resistance at $83.50. Initial support stems from the psychological $82.00 mark.