Corn futures are mostly 6 cents higher at midmorning.
· Corn futures are extending Monday’s corrective gains despite negative outside markets.
· USDA reported a daily corn sale of 200,000 MT to unknown destinations for 2024-25.
· USDA rated 67% of the corn crop as “good” to “excellent” and 10% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (CCI; o to 500-point scale, with 500 representing perfect), the corn crop was unchanged at 373.5.
· Crop consultant Dr. Michael Cordonnier raised his U.S. corn yield forecast by 1.5 bu. per acre as weather has been favorable for pollination and there aren’t any threatening conditions in the near-term forecast. That increased his corn production estimate to 14.97 billion bushels.
· December corn futures are trading above the 20-day moving average of $4.17, with resistance now at $4.22 1/4. Meanwhile, initial support lies at the 10-day moving average of $4.10 1/2.
Soybeans are mostly 8 to 15 cents higher. Soymeal futures are mostly $1.00 to $2.00 higher. Soyoil is mostly 20 to 40 points higher.
· Soybeans are being supported by short-covering, along with meal and soyoil.
· USDA rated the soybean crop as 68% “good” to “excellent” and 8% “poor” to “very poor.” On our CCI, the soybean crop increased 2.0 points to 366.9.
· Dr. Cordonnier left his U.S. soybean yield unchanged at 52 bu. per acre and indicated a neutral to higher bias going forward. He continues to forecast production at 4.39 billion bushels. He did note soybean acreage remains uncertain and is using 750,000 less harvested acres than USDA due to ponding/flooding in the northwestern Corn Belt and hail damage primarily in Nebraska.
· November soybeans are facing resistance at the 20-day moving average of $10.81 1/2, while initial support lies at $10.60 1/2.
Wheat futures are mostly 2 to 4 cents higher at midsession.
· Wheat futures are modestly favoring the upside on support from corn and soybeans.
· The Wheat Quality Council’s annual HRS tour through North Dakota, along with far western Minnesota and far northern South Dakota kicked off this morning. We’ll highlight scout reports through the week. Final yield results will be released Thursday afternoon, along with a North Dakota production guesstimate from Tour scouts.
· Canada’s top crop-growing regions recorded hot temps and limited rain over the past week, prompting crop stress, with concerns growing as warmer conditions are forecast for the week ahead, as reported in provincial reports collected by Fastmarkets.
· Russian agricultural consultancy SovEcon revised up its forecast for Russia’s 2024 grain crop to 130.5 MMT from a previous estimate of 127.4 MMT. SovEcon forecasts the 2024 wheat crop at 84.2 MMT, up slightly from a prior projection of 84.1 MMT.
· December SRW wheat futures are trading above the 10-day moving average of $5.70 1/2, with resistance at $5.78 3/4. Support is at $5.66 1/2
Live cattle and feeders are modestly firmer at midmorning.
· August live cattle are trading modestly higher in consolidative trade.
· Last week’s average cash cattle price dropped 57 cents to $193.67, the lowest since mid-June.
· Wholesale beef prices slid on Monday, with Choice falling 39 cents to $313.44, the lowest price since the end of May, and Select down 47 cents to $298.33. Movement totaled 149 loads for the day.
· August live cattle are trading within Monday’s upper range, limited by resistance at the previous session high of $184.625, while initial support lies at the 10-day moving average of $182.98.
Hog futures are sharply higher at midsession.
· August hog futures are posting strong gains amid support from firming cash and wholesale fundamentals.
· The CME lean hog index is up another 9 cents to $89.80 as of July 19, marking the sixth straight daily gain and the longest string of gains since mid-April.
· The pork cutout value rose another $2.01 on Monday to $104.17, the highest quote since last August, led by gains in primal hams and bellies. Movement totaled 263.4 loads.
· August lean hogs gapped higher at the open and are challenging resistance at $93.81, while initial support lies at today’s low of $92.70.