Corn futures are mostly a penny to 2 cents lower at midmorning.
- Corn futures are facing pressure for the eighth straight session in the wake of USDA’s acreage and stocks data last Friday.
- A good mix of rain and sunshine is expected in Midwest crop areas during the next 10 days, though heavy rainfall is expected in the western Corn Belt, notes World Weather Inc.
- USDA reported export inspections of 819,577 MT (32.3 million bu.) during the week ended June 27, down 333,373 MT from the previous week but within the pre-report range of 580,000 MT to 1.3 MMT.
- AgRural reported Brazilian farmers had harvested 49% of their second corn crop as of last Thursday, up from 34% the previous week and 16% a year earlier.
- Mexico’s incoming government will discard a core goal of outgoing President Andres Manuel Lopez Obrador to reduce imports of yellow corn and achieve self-sufficiency in production of the grain, according to the incoming agriculture minister. However, Reuters reported, Mexico will focus on maintaining self-sufficiency in white corn.
- Analysts expect corn-for-ethanol use to have increased to 445.9 million bu., up 7.0% from April and 1.6% above last year. USDA will release the data at 2:00 p.m. CT.
- December corn futures are trading within Friday’s lower range, with selling efforts limited by support at the previous session low of $4.12, which is backed by support at $4.08 1/4. Meanwhile, initial resistance stands at $4.24 1/2.
Soybeans are mostly 1 to 8 cents higher. Soymeal futures are $3.00 lower to $1.00 higher Soyoil is around 130 points higher.
- Soybeans are modestly firmer, after reaching a fresh near-term low in early trade, as soyoil strength spurs light short-covering.
- China is likely to import a record volume of soybeans in July, triggered by lower prices and potential for a trade war with the U.S. Chinese buyers have booked around 12 MMT to 13 MMT of soybeans for July arrival, two Singapore-based traders and two analysts in China told Reuters, with the bulk of the purchases from Brazil. China’s all-time high for soybean imports was 12.02 MMT in May 2023.
- Analysts expect USDA to show soybean crush rebounded to 194.0 million bu. in May, which would be up 9.2% from April and 2.5% above year-ago.
- USDA reported export inspections of 303,023 MT (11.1 million bu.) during the week ended June 27, down 46,861 MT from the previous week and in the middle of the pre-report range of 200,000 and 400,000 MT.
- November soybeans are facing resistance at $11.09 1/2, while initial support lies at $10.94 1/4.
Wheat futures are mostly 9 to 16 cents higher at midmorning.
- Wheat futures are notching corrective gains in the wake of recent heavy selling.
- USDA reported export inspections of 309,775 MT (11.4 million bu.) during the week ended June 27, down 33,897 MT from the previous week and just within the pre-report range of 300,000 to 500,000 MT.
- Drying has resumed in Russia’s Southern Region, central and eastern Ukraine and areas north into Russia’s Central Region and middle Volga River Basin for the next 10 days, according to World Weather. Temps will be warmer than usual inducing quick drying and crop stress.
- December SRW futures have moved above the 10-day moving average at $6.03, with next resistance at $6.17. Initial support lies at $5.87 3/4.
Live cattle are moderately to sharply weaker, while feeders are under heavy pressure.
- August live cattle are posting followthrough weakness as technical selling casts a shadow over recent cash strength.
- Markets are open Friday, though packers and feedlots may try to wrap up cash cattle negotiations ahead of Thursday’s holiday. Of course, feedlots will be seeking higher prices for cash cattle, while it’s unlikely packers will want to keep paying up for supplies.
- Wholesale beef prices firmed Friday, with Choice rising $2.99 to $326.32 and Select up $1.80 to $304.50, widening the Choice/Select $21.82. Movement totaled 94 loads for the day.
- August live cattle gapped lower at the open and have extended below the 10-day moving average, currently trading at $184.24, with support at $183.69 and $182.31.
Hogs are mixed with nearby contracts firmer at midsession.
- Nearby hog futures are favoring the upside to begin the week, though technical resistance is limiting buyer interest.
- The CME lean hog index is down 29 cents to $89.47, extending the recent price slide.
- The pork cutout value rose $2.99 to $97.89. Movement totaled 231.0 loads for the day.
- July lean hogs continue to face resistance at $90.69, which is backed by the 10-day moving average of $91.03. Meanwhile, initial support lies at $89.52.