Corn futures are mostly 1 to 2 cents lower at midmorning.
· Corn futures are extending lower for a third straight session amid general selling across the grain and soy markets.
· USDA reported net old-crop corn sales of 485,400 MT for the week ended Aug. 1, while new-crop sales totaled 249,100 MT. Sales for the 2023-24 marketing year surpassed analysts pre-report expectations of 100,000 to 400,000 MT while 2024-25 sales were notably short of the expected range of 475,000 MT to 1.0 MMT.
· Nearly all of the Midwest will receive at least some rain Tuesday through Friday of next week and that should help prevent excessive dryness from evolving, according to World Weather Inc.
· December corn futures dropped below the psychological $4.00 mark, with support at $3.98 1/4. The 10-day moving average around $4.04 serves as initial resistance.
Soybeans are mostly a nickel to 7 cents lower, while soymeal futures are mostly around $1.00 to $2.50 lower. Soyoil is modestly firmer in most contracts.
· Soybeans continue to face pressure with spillover selling stemming from soymeal futures.
· Net old-crop soybean sales during the week ended Aug. 1 totaled 325,400 MT, while new-crop sales were reported at 985,200 MT. Net sales for both years exceeded analysts’ range of expectations from 100,000 to 300,000 MT and 400,000 to 900,000 MT, respectively.
· A strike launched by Argentine oilseed industry unions on Tuesday remains in place for a third straight day, halting shipments from ports that have soy processing facilities. Only two ports among Argentina’s main ag shipping hubs, all located north of the city of Rosario on the Parana River, do not host soybean crushing plants.
· November soybeans have forged a fresh near-term low, with next support at $10.05 1/4 while the 10-day moving average of $10.27 continues to serve as initial resistance.
SRW wheat futures are steady to fractionally lower, HRW is 2 to 5 cents lower and HRS is mostly around a penny lower.
· Wheat futures are lower amid general weakness in the grain and soy markets and U.S. dollar strength, though technical support is curbing heavier selling efforts.
· USDA reported net wheat sales of 274,000 MT for the week ended Aug. 1, down 4% from the previous week and 23% from the four-week average. Net sales were near the low end of the pre-report range of expectations from 250,000 to 500,000 MT.
· Strategie Grains slashed its EU wheat production forecast by 5.8 MMT to 116.5 MMT, down 10.7 MMT (8.4%) from last year. The firm also cut its 2024-25 EU wheat export forecast by 4.1 MMT to 26.9 MMT, down 6.7 MMT (19.9%) from last year, reflecting the production cuts, sluggish demand and lack of competitiveness with other origins like the Black Sea region.
· Expected cold temps next week could cause frosts and damage crops in areas of Argentina, the Buenos Aires Grain Exchange warned, with the wheat crop most at risk. The western part of the country’s grain growing region could be affected most, it added.
· Initial support for December SRW wheat is at the 10-day moving average of $5.57 1/4, while initial resistance is at $5.69 1/2.
Live cattle and feeders are weaker at midmorning.
· Cattle futures are favoring the downside in consolidative trade as traders remain hesitant amid recent recessionary concerns.
· Wholesale beef continued to slip on Wednesday, with Choice falling $1.96 to $313.85 while Select fell 79 cents to $279.83. Movement held strong at 128 loads for the day.
· USDA reported net beef export sales of 10,000 MT for 2024, down 43% from the previous week and 27% below the four-week average.
· October live cattle continue to trade within Monday’s broad range, with initial support at $178.175, while initial resistance stands at $180.475 and is backed by the 200-day moving average of $180.81.
Hog futures are moderately to sharply lower midsession.
· August hog futures are moderately lower amid weakening cash fundamentals and fading wholesale strength. Deferred futures are facing heavy selling pressure.
· The CME lean hog index is down 23 cents to $93.10 as of Aug. 6, the third straight daily decline.
· The pork cutout dropped $1.99 on Wednesday to $100.32, led by a $7.62 drop in primal bellies, though all cuts except hams declined.
· USDA reported net pork export sales of 34,600 MT for 2024, up 10% from the previous week and 24% above the four-week average.
· China imported 540,000 MT of meat during July, up 25,000 MT (4.9%) from June but down 125,000 MT (18.8%) from last year. Through the first seven months of 2024, China imported 3.835 MMT of meat, down 14.5% from the same period last year.
· October lean hogs gapped lower at the open, spurring a downside breakout form the recent consolidation range. Next support is at a 61.8% retracement of the July rally near $72.12. Initial resistance stands at the session high of $73.875.