Corn futures are 3 to 4 cents lower at midmorning.
· Corn futures are extending Tuesday’s price declines.
· U.S. drying will continue into Monday from the Delta into Illinois, southern Indiana and Kentucky as well as a part of eastern Missouri, while rain will periodically fall from the Central Plains into the Northern Plains and upper Midwest. Meanwhile, cooler-than-usual temps will impact the north-central Plains, upper Midwest and Canada’s Prairies this week.
· Ethanol production averaged 1.067 million barrels per day (bpd) during the week ended Aug. 2, down 42,000 bpd (3.8%) from the previous week but up 4.3% from last year. Ethanol stocks declined 206,000 barrels to 23.767 million barrels.
· December corn futures testing initial support at $4.01 3/4, which is backed by the psychological $4.00 level and last week’s low of $3.95. The 10- and 20-day moving averages, each trading around $4.10, remain resistance.
Soybeans are mostly a nickel to 6 cents lower, while soymeal futures are mostly around $7.00 lower. Soyoil is more than 100 points higher.
· Soybeans are being led lower by followthrough weakness in soymeal, while soyoil strength is keeping losses from becoming greater.
· China imported 9.85 MMT of soybeans in July, down 1.26 MMT (11.3%) from June but up 270,000 MT (2.8%) from last year. Analysts expected soybean arrivals to reach 12 MMT to 13 MMT and challenge the all-time monthly record. Through the first seven months of the year, China imported 58.33 MMT of soybeans, down 1.3% from the same period last year.
· Two unions representing soybean oil factory workers in Argentina announced a strike over wages on Tuesday, halting activity at soy processing plants. After failing to reach an agreement yesterday, the unions announced plans to continue the strike today and will discuss how long to extend the work stoppage if their wage demands aren’t met.
· Indonesia’s outgoing government of President Joko Widodo has ordered the palm oil industry to prepare for B50 biodiesel and conduct “static tests,” Reuters reported, citing director general of renewable energy at the energy ministry. That will be followed by vehicle road tests, in a process that typically takes a year.
· November soybeans are consolidating between last week’s low of $10.13 and the 10-day moving average of $10.33 1/2.
Wheat futures are mostly 1 to 4 cents lower, with HRW leading losses.
· After trading higher overnight, wheat futures are pulling back from recent gains, though technical support is limiting the downside.
· Egypt’s state grains buyer, the General Authority for Supply Commodities, announced a record tender for 3.8 MMT of wheat to cover imports between October 2024 and April 2025 as prices are near four-year lows. Egypt’s Finance Minister Ahmed Kouchouk said the global price drop presents an opportunity to more aggressively procure supplies.
· December SRW wheat futures are facing initial resistance at $5.73 1/2, while initial support lies at the 10-day moving average of $5.58 1/2.
Live cattle and feeders are slightly firmer.
· Cattle futures are trying to rebound from recent losses, though solid technical resistance is curbing momentum along with cautionary sentiments.
· While there’s been some stability in wholesale beef trade, the outlook for cattle futures is clouded by the recent long liquidation plunge.
· Wholesale beef prices dropped on Tuesday, with Choice falling $2.13 to $315.81, while Select declined 44 cents to $29.62. Movement surged to 181 loads, as strong retailer demand suggests consumers haven’t balked at record prices at the meatcase yet.
· October live cattle gains are being limited by the 200-day moving average of $180.84, which is backed by the 100-day moving average of $181.42. Initial support lies at $178.225.
Hog futures are slightly to moderately weaker at midsession.
· August hog futures are lower amid consolidative trade and weakness in cash and wholesale fundamentals.
· The CME lean hog index is down 26 cents to $93.33 as of Aug. 5, marking the second straight daily decline after the extended rally.
· The pork cutout value fell $1.97 on Tuesday to $102.31 amid declines in all cuts aside from primal loins and ribs. Movement totaled 385.2 loads for the day.
· October lean hogs continue to face resistance at the 10-day moving average of $76.30, while initial support lies at the 20- and 40-day moving averages, currently trading at $74.89 and $74.86.