Corn futures are mostly 6 to 7 cents lower at midmorning.
· Corn futures are taking back corrective gains notched over the previous two sessions.
· USDA reported corn export sales of 437,800 MT for the week ended July 11, down 19% from the previous week and 10% from the four-week average. Old crop sales for the week missed the expected pre-report range of 500,000 to 800,000 MT, while new-crop sales of 585,700 MT exceeded analysts’ pre-report range of estimates. Exports during the week totaled 1.1 MMT.
· The U.S. National Weather Service released its 30- and 90-day outlooks this morning, which indicated warmer-than-usual weather will dominate the next 90 days across much of the contiguous United States, with temps in the upper Midwest and Northern Plains closest to normal. Rainfall will be above normal in the southeastern states, Delta and Tennessee River Basin during August and below normal across the western Corn Belt.
· December corn futures are supported by last week’s low of $4.03, while the 10-day moving average of $4.15 1/2 continues to serve as initial resistance.
Soybeans are mostly 2 to 3 cents higher. Soymeal futures are up to $1.00 higher, while soyoil is 20 to 30 points higher.
· Soybeans are modestly firmer, along with mild strength in soymeal and soyoil.
· USDA reported daily sales 510,000 MT of soybeans and 150,000 MT of soymeal to unknown destinations for 2024-25.
· USDA reported weekly soybean exports sales of 360,100 MT for 2023-24 and 375,000 MT for 2024-25. Both were within analysts’ range of estimates. Old-crop sales for the week rose 73% from the previous week and 13% from the four-week average, while exports totaled 200,800 MT, down 25% from the previous week and 38% from the four-week average.
· November soybeans dropped to a fresh near-term low before bouncing. Initial support is now at $10.30 1/2, while initial resistance remains at $10.48 1/2.
SRW wheat futures are mostly 2 to 3 cents lower, while HRW futures are steady to a penny higher. HRS futures are posting 8 to 10-cent gains.
· SRW wheat futures are favoring the downside despite gains in HRW and HRS futures and notable weekly export data.
· USDA reported wheat export sales of 578,500 MT for the week ended July 11, which were up notably from the previous week and up 1% from the four-week average. Net sales were near the top end of analysts’ range of estimates from 225,000 to 600,000 MT. Exports during the week totaled 630,900 MT, up notably from the previous week and 96% from the four-week average.
· Some relief to the warm and dry bias in the western Black Sea region is expected this weekend and especially next week as the dominating high pressure ridge breaks down.
· Overnight, Japan purchased 115,208 MT of milling wheat via its weekly tender, including 55,318 MT U.S. and 59,890 MT Canadian. Algeria purchased between 700,000 and 750,000 Mt of optional origin milling wheat, most of which is expected to be sourced from the Black Sea region.
· December SRW wheat futures are trading within Wednesday’s upper range, with resistance at $5.72, while support remains at $5.53 3/4.
Live cattle and feeders are sharply lower at midsession.
· August live cattle have erased Wednesday’s gains despite firming cash fundamentals.
· Light cash cattle trade started at steady $188.00 prices in the Southern Plains on Wednesday. Initial cash trade not only came earlier in the week than anticipated, but at stronger prices. Bids remained scarce in the northern market.
· Wholesale beef prices declined on Wednesday, with Choice falling $1.10 to $318.16, while Select dropped $3.15 to $298.44, widening the Choice/Select spread to $19.72. Movement was solid at 163 loads for the day.
· USDA reported net beef sales of 15,400 MT for 2024, up 85% from the previous week and 11% from the four-week average. Exports totaled 15,600 MT.
· August live cattle are trading within Wednesday’s trading range, with initial support at $182.51, while Wednesday’s high of $184.575 stands as initial resistance.
Hog futures are lower at midmorning.
· August hog futures are facing slight pressure amid a pullback from recent gains.
· The CME lean hog index is up 18 cents to $88.80 as of July 16, making the first three-day string of gains since late May/early June.
· The pork cutout value fell $1.55 to $99.32 amid declines in primal butts, hams and ribs. Movement totaled 270.1 loads for the day.
· USDA reported net pork sales of 23,700 MT for 2024, down 11% from the previous week and 35% from the four-week average. Exports totaled 31,900 MT.
· August lean hogs are pivoting around the 40-day moving average of $91.17, with initial support at $90.30, while resistance stands at $91.78 and is backed by $92.45.