Corn futures are mostly 1 to 2 cents higher at midmorning.
· Corn futures are posting a second day of mild corrective gains following the recent selloff.
· USDA reported daily corn sales of 100,000 MT to Colombia for 2023-24.
· USDA rated 67% of the corn crop as “good” to “excellent” and 9% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop dropped 2.1 points to 372.3, but that was still 32.7 points higher than last year on the date.
· Crop consultant Dr. Michael Cordonnier is using USDA’s planted acreage figure but cut harvested acreage 910,000 acres to 82.538 million (90.2%) of planted area and maintained his yield estimate of 179 bu. per acre. That lowered his corn production forecast to 14.77 billion bushels.
· World Weather reports temps will be milder across the central and eastern states for the coming week and a little closer to normal next week.
· December corn is being capped by resistance at $4.28, while initial support lies at $4.19 1/2.
Soybeans are mostly 5 to 7 cents higher. Soymeal futures are $3.00 lower to $1.00 higher Soyoil is around 110 points higher.
· Soybeans are higher on followthrough corrective buying.
· USDA rated the soybean crop as 67% “good” to “excellent” and 8% “poor” to “very poor.” On our CCI, the soybean crop held at 363.00 and 34.5 points above year-ago.
· Dr. Cordonnier is using USDA’s planted acreage figure but cut harvested area 750,000 acres to 84.511 million acres (99.0% of planted area) and kept his yield estimate at 52 bu. per acre. That reduced his soybean production forecast to 4.39 billion bu.
· Shell will pause construction work at one of Europe’s largest biofuels plants due to weak market conditions, the latest low-carbon project to suffer a setback. Shell started development of the 820,000-ton-per-year plant in the Netherlands in September 2021, which was originally planned to start production in 2025. The project is now expected to online toward the end of the decade.
· November soybeans have pushed above the 10-, 20- and 40-day moving averages of $11.03 1/2, $11.05 1/4 and $11.06 3/4. Next resistance is last Friday’s spike high at $11.25. Initial support lies at Monday’s low of $11.03 and is backed by psychological support at $11.00.
Winter wheat futures are mostly 7 to 10 cents lower while HRS futures are around 3 to 4 cents lower.
· Wheat futures are pausing after a move from recent lows amid an improving spring wheat crop and rapidly advancing winter wheat harvest.
· USDA rated 72% of the spring wheat crop as “good” to “excellent” and 4% “poor” to “very poor.” On our CCI, spring wheat improved 8.6 points to 382.2. That was 48.8 points higher than last year on this date.
· Winter wheat harvest advanced to 54% complete, well ahead of the five-year average of 39%.
· December SRW futures are trading within Monday’s range, with support at the 10-day moving average of $6.00 1/4, while initial resistance stands at the previous session high of $6.14 1/4.
Live cattle are posting slight to moderate gains, while feeders are sharply higher.
· August live cattle are favoring the upside in narrow trade, with solid cash and wholesale fundamentals supporting futures.
· Cash cattle averaged a record $195.81 last week, the third consecutive week with an all-time high.
· Wholesale beef prices rose on Monday, with Choice gaining $2.86 o $329.18, while Select rose $1.91 to $306.41, widening the Choice/Select spread to $22.77. Movement was 98 loads.
· August live cattle are hovering around the 10-day moving average of $184.47. Support is at $183.55, while initial resistance remains at $185.08.
Hogs are mixed at midsession.
· Nearby hog futures are consolidating amid pressure from weakening cash and wholesale fundamentals.
· The CME lean hog index is down another 30 cents to $89.17 as of June 28, extending the recent slide lower.
· The pork cutout value fell $2.48 Monday to $95.41, led lower by primal bellies, though all cuts marked a decline. Movement totaled 278.1 loads for the day.
· July lean hogs are facing resistance at $89.67, which is backed by the 10-day moving average of $90.32. Initial support lies at the June 26 low of $88.65.