Corn futures are unchanged to a penny higher at midmorning.
- Corn futures are modestly firmer despite broad risk-off trade across the global marketplace.
- Rains will favor northern areas of the Corn Belt over the next week to 10 days. While southern and some eastern areas of the region will be dry, temps will trend cooler than normal.
- USDA reported corn export inspections of 1.2 MMT (47.8 million bu.) for the week ended Aug. 1, up 143,102 MT from the previous week and above the pre-report range of expectations from 700,000 MT to 1.2 MMT.
- A record heatwave in July across most of Ukraine may reduce corn production by about 6 MMT from last year’s level, producer group Ukrainian Agrarian Council (UAC) warned. UAC gave no official production estimate, but the warning of potential production loss would be about in line with last week’s forecast from the Ukrainian grain traders Union, UGA, which expected production of 23.4 MMT, compared with 29.6 MMT in 2023.
- Brazil’s safrinha corn harvest reached 95% as of last Thursday, according to AgRural. Harvest should wrap up shortly given ongoing dry weather, according to World Weather Inc.
- December corn continues to find support around $3.95, while initial resistance stands at 10- and 20-day moving averages, each trading around $4.09.
Soybeans are mostly a penny to 2 cents higher, while soymeal futures are mostly $2.00 to $4.50 higher. Soyoil is around 50 to 60 points lower.
- Soybeans are choppy, with strength in corn futures offsetting some weakness from soy derivatives.
- Numerous rain chances and cooler temps will be seen across the northern and eastern Corn Belt over the next 10 days. Southern areas of the Corn Belt, the southwestern Plains and Delta will see net drying, though cooler temps later this week may limit crop stress. Hurricane Debby made landfall this morning and will bring heavy rains to portions of the Southeast early this week.
- USDA reported soybean export inspections of 261,203 MT (9.6 million bu.) for the week ended Aug. 1, down 147,379 MT from the previous week and near the lower end of the pre-report expectations from 200,000 to 475,000 MT.
- November soybeans continue to be limited by the 10-day moving average of $10.42 1/2, while initial support lies at $10.17 1/4 and is backed by last week’s low of $10.13.
Wheat futures are mostly a penny to 4 cents lower.
- Wheat futures have rebounded from earlier lows on support from corn, though geopolitical and recessionary concerns loom.
- USDA reported wheat export inspections of 440,888 MT (16.2 million bu.), down 13,904 MT from the previous week but near the upper end of the pre-report range of 300,000 to 475,000 MT.
- A sharp drop in the U.S. dollar is helping offset some of the geopolitical concerns.
- December SRW wheat futures are hovering mostly above the 10-day moving average of $5.58 1/2 after trading as low as $5.44 1/2, with support at $5.49. Initial resistance stands at $5.66 1/2.
Live cattle and feeders are sharply lower at midsession.
- Cattle futures continue to face heavy selling as fund managers extend long liquidation amid the heightened macroeconomic concerns.
- Cattle futures faced heavy pressure from long liquidation late last week amid the building economic concerns. Cash fundamentals are often ignored when macroeconomic concerns build.
- Wholesale beef prices were mixed on Friday, with Choice rising 98 cents to $313.77 and Select slipping 29 cents to $297.17.
- October live cattle gapped below the 100- and 200-day moving averages of $181.55 and $180.93, with support at the session low of $176.35; the lowest intraday level since May 13.
Hog futures are moderately lower at midsession.
- August hog futures have rebounded from earlier lows amid intra-day corrective buying.
- The CME lean hog index is up another 11 cents to $93.64 as of Aug. 1, extending the string of gains to 15 consecutive days.
- The pork cutout value dropped $1.55 on Friday to $104.31 amid losses in all cuts. Movement totaled 233.6 loads for the day.
- October lean hogs gapped below the 40-day moving average of $74.96. Support is at $73.50.