Corn futures are mostly 1 to 2 cents higher at midmorning.
· Corn futures are mildly extending Tuesday’s corrective gains, though technical resistance continues to curb buying despite notable outside market support.
· Ethanol production averaged 1.106 million barrels per day (bpd) during the week ended July 12, up 52,000 bpd (4.9%) from the previous week and 3.4% above last year. That was the largest ethanol production since the week ended Dec. 22, 2023, and only 2,000 bpd below the record of 1.108 million bpd during the week ended Dec. 1, 2017. Ethanol stocks dropped 443,000 barrels to 23.16 million barrels.
· Overnight, Taiwan purchased 65,000 MT of corn to be sourced from the U.S.
· December corn futures are testing resistance at the 10-day moving average of $4.11 1/2 while initial support lies at $4.07 1/2.
Soybeans are fractionally lower to 8 cents higher. Soymeal futures are mixed with a slight downside bias, while soyoil is steady to 30 points lower.
· August soybeans are firmer, while the November contract is favoring the downside amid spreading action.
· Minor to moderate flooding was occurring along portions of the Middle Mississippi River this morning with major flooding along central and southern parts of the Iowa and Illinois border and water levels will decline during the next week.
· Excessive rainfall overnight in northern Arkansas will move to the east today while weakening. The area of heavy rain is shifting toward production areas of the northern U.S. Delta, although the rain intensity is expected to subside greatly today, according to World Weather Inc.
· November soybeans continue to be limited by resistance at $10.51, while initial support lies at Tuesday’s low of $10.37 1/4.
Wheat futures are mostly 13 to 17 cents higher.
· Wheat futures are higher in the wake of three days of notable selling, with U.S. dollar weakness lending support.
· Germany’s 2024 wheat crop will fall 6.2% from last year to 20.20 MMT, the country’s association of farm cooperatives said, down from its prior forecast of 20.34 MMT.
· Some relief from the warm and dry bias in the western CIS is expected this weekend and especially next week as the dominating high pressure ridge present in the region breaks down.
· Overnight, Egypt purchased 770,000 MT wheat—720,000 MT Russian and 50,000 MT Bulgarian. No U.S. wheat was offered in the Egyptian tender. Thailand passed on a tender to buy up to 175,200 MT of optional origin feed wheat. Jordan tendered to buy 120,000 MT of optional origin milling wheat.
· December SRW wheat futures are facing resistance at $5.72 3/4, while initial support lies at Tuesday’s low of $5.50 1/4.
Live cattle are mixed, while feeders are moderately lower.
· August live cattle are modestly firmer in continued consolidative trade as technical pressure continues to curb buying, though support is also limiting seller interest.
· Cash cattle trade remains limited and will likely be pushed deep into the week – maybe after Friday’s Cattle on Feed Report.
· Choice boxed beef prices fell $2.23 to $319.26, while Select dropped $3.23 to $301.59, moving the Choice/Select spread to $17.67. Fading wholesale prices are typical for this time of year as demand slows amid rising temps, especially for non-ground beef.
· August live cattle continue to face resistance at the 10-day moving average of $183.36, while initial support remains at the 40-day moving average of $181.86.
Hog futures are mildly favoring the upside at midmorning.
· August hog futures extending Tuesday’s gains to the highest intraday level since early June before fading.
· The CME lean hog index firmed 20 cents to $88.62 as of July 15, marking consecutive days of modest gains.
· The pork cutout firmed $2.58 to $100.87 on Tuesday, fueled by a $9.71 jump in primal ham prices.
· August lean hogs gapped above the 40-day moving average of $91.38, which is serving as initial support, while resistance stands at $92.29