Corn futures are mostly 1 to 2 cents lower at midmorning.
· Corn futures are favoring the upside in consolidative trade as technical resistance continues to limit activer buying interest.
· U.S. central and eastern Midwest rainfall will be minimal through Monday, resulting in net drying conditions, but rain should return across the region thereafter, according to World Weather Inc.
· Southern Brazil will experience some welcome and needed drying over the next 10 days, which will support late safrinha harvest conditions.
· December corn futures are trading within the recent consolidation range, with initial resistance at the previous session high of $4.13, while initial support lies at $4.03.
Soybeans are mostly a penny to 3 cents higher. Nearby soymeal futures are around $1.00 higher, while soyoil is 20 to 40 points higher.
· Soybeans are modestly firmer in narrow trade, in tandem with nearby meal futures and soyoil.
· China is facing an oversupply of soybeans as record purchases boost stockpiles at a time when soymeal demand remains subdued, Reuters reports. Importers have ramped up soybean deliveries, fearing a return to a trade war with the U.S. despite poor crush margins and weak demand from the livestock sector.
· USDA reported a daily soymeal sale of 105,000 MT to unknown destinations during 2024-25.
· November soybeans continue to face resistance at $10.48 3/4, while initial support lies at $10.40 1/4.
Wheat futures are mostly 11 to 15 cents higher.
· Wheat futures are higher for the third straight session after posting new lows earlier this week.
· Russia’s agricultural consultancy IKAR trimmed its 2024 Russian grain export forecast to 55 MMT, down from 55.5 MMT. The consultancy also revised its grain crop estimate to 128 MMT, down from 129.5 MMT.
· France’s ag ministry rated the country’s wheat crop as 52% good or excellent as of July 15, down five points from the previous week and the lowest since 2016 when France had the smallest crop since the 1980’s. Harvest reached 14%, sharply behind the five-year average of 43% for the date.
· December SRW wheat futures failed to find sustained buying above the 10-day moving average of $5.76 1/2. That is backed by the 20-day moving average of $5.87 1/2. Initial support remains at $5.55.
Live cattle are mostly firmer, while feeders are marking slight to moderate losses at midmorning.
· August live cattle are firmer as traders await this afternoon’s Cattle on Feed Report.
· Analysts expect USDA to show the large feedlot (1,000-plus head) inventory up 1.1% from year-ago at 11.327 million head. Placements are expected to be down 2.8%, with marketings down 8.3%.
· Thursday’s decline in cattle futures caused feedlots to sell cash cattle in the northern dressed market around $2.00 below last week after trade at steady prices occurred in the Southern Plains earlier in the week.
· Choice boxed beef prices fell $2.01 on Thursday to $316.15, while Select firmed $1.02 to $299.46, narrowing the Choice/Select spread to $16.69. Movement was strong at 174 loads.
· August live cattle are trading mostly within the 10- and 40-day moving averages of $182.83 and $180.92, with additional resistance/support at the 20-day moving average of $184.06 and $181.25.
Hog futures are posting moderate to strong gains at midmorning.
· August hog futures are posting moderate gains, with cash and wholesale fundamentals spurring some buying.
· The CME lean hog index is up 47 ents to $89.27 as of July 17, extending the recent upturn to four consecutive days.
· The pork cutout value firmed 93 cents to $100.25 on Thursday, while movement improved to 303.2 loads.
· August lean hogs poked above initial resistance at $91.98, while initial support lies at the 40-day moving average of $91.01.