Corn futures are mostly 3 to 4 cents higher at midmorning.
· Corn futures posting corrective gains for the fourth straight session, with strength stemming from a weaker U.S. dollar and solid weekly new-crop export sales.
· USDA reported net old-crop sales of 331,400 MT for the week ended July 18, down 24% from the previous week and 29% from the four-week average. Net sales for 2024-25 totaled 745,200 MT and exceeded the pre-report range of 100,000 to 600,000 MT. Exports during the week reached 1.21 MMT, up 10% from the previous week.
· Westernmost portions of U.S. corn and soybean production areas will experience net drying over the coming week to ten days, with some warming temps as well. World Weather Inc. notes most crops will benefit from the change initially, but it will not take long for dryness and heat stress to become a greater concern.
· December corn futures continue to face resistance around $4.23, while the 20- and 10-day moving averages, currently trading at $4.14 3/4 and $4.12 1/4 serve up initial support.
Soybeans are mostly 8 to 16 cents higher, with heavier gains in new-crop contracts. Soymeal futures are mostly $8.00 to $9.00 higher. Soyoil is mostly 10 to 30 cents lower.
· Soybeans are being led higher by solid gains in soymeal and extended buying in corn futures.
· USDA reported daily sales of 264,000 MT of soybeans to unknown destinations during 2024-25.
· USDA reported old-crop soybean sales of 88,600 MT during the week ended July 18, down 61% from the previous week and 63% from the four-week average and missing the pre-report range of 100,000 to 400,000 MT. Net sales for 2024-25 totaled 829,700 MT, in the upper end of the expected range of 500,000 to 900,000 MT. Exports of 368,500 MT rose 84% from the previous week.
· China is highly concerned about the European Union’s protectionist actions in the biodiesel industry, the commerce ministry said. The comments come after the EU announced last Friday it will impose anti-dumping duties of 12.8%.
· November soybeans are trading mostly between the 20- and 10-day moving averages of $10.77 1/2 and $10.55 1/2, though additional resistance/support serve at $10.86 1/2 and $10.51 1/2.
Winter wheat futures are mostly a nickel to 9 cents lower, while HRS futures are mostly 2 cents lower.
· Wheat futures are favoring the downside in narrow, consolidative trade as tepid export sales data negated support from a weaker dollar.
· Scouts on the second day of the Wheat Quality Council’s annual HRS tour found strong yield potential in north-central and northwestern North Dakota. Samples collected averaged 53.7 bu. per acre, up from 45.7 bu. on similar routes last year and the five-year average (excluding 2020 because the tour was canceled due to Covid) of 40.0 bu. per acre.
· USDA reported weekly wheat sales of 309,300 MT during the week ended July 18, down 47% from the previous week and 46% from the four-week average. Net sales were just within the pre-report range of 300,000 to 625,000 MT. Exports for the week totaled 271,500 MT, down 57% from the previous week.
· In a court filing late on Wednesday, the Australian Securities and Investments Commission (ASIC) said an employee of COFCO International Australia placed an order to sell Eastern Australia Wheat Futures contracts below market value just before the close of trading on the Australian Securities Exchange (ASX) 34 times in 2022 to influence the settlement price of the contract. Another local COFCO unit, COFCO Resources, stood to benefit because it held a short position in the same futures contracts, the federal civil court filing said.
· December SRW wheat futures are pivoting around the 10-day moving average of $5.65 1/4, with support serving at $5.62 and $5.53, while the 20-day moving average of $5.82 1/4 continues to curb buying efforts.
Live cattle and feeders are marking strong gains in nearby contracts, while deferred contracts are modestly firmer.
· August live cattle are extending higher for the fifth consecutive session amid persistent technical strength, though the early July high is limiting momentum.
· USDA will detail frozen meat stocks at the end of June this afternoon in its Cold Storage Report. The five-year average is a 5.4-million-lb. decline in beef stocks.
· Wholesale beef prices edged lower on Wednesday, with Choice dropping 53 cents to $312.68, while Select tumbled $2.70 to $293.96, widening the Choice/Select spread to $18.72. Movement remained solid at 188 loads.
· August live cattle are testing resistance at $187.38, though additional resistance stands at $187.85 and is backed by the July 5 high of $188.25. Meanwhile, initial support lies at $186.68.
Hog futures are posting moderate to strong losses at midsession.
· August hog futures are correctively lower following a string of gains, though persisting cash and wholesale fundamentals combined with technical support should curb selling efforts.
· USDA will release its Cold Storage Report for the end of June this afternoon. The five-year average is an 18.0-million-lb. drop in pork stocks during the month.
· The CME lean hog index is up another 69 cents to $90.77 as of July 23, marking the eighth straight daily gain and the largest increase since April 11.
· The pork cutout value rose $1.26 to $104.76, notching the highest reading since Aug. 24 of last year, despite declines in primal butts and ribs. Movement totaled 311.9 loads for the day.
· August lean hogs continue to face resistance at $94.44, while initial support lies at $93.04 and is backed by support at $92.31 as well as the 10-, 40- and 20-day moving averages, currently trading at $91.57, $90.62 and $89.98.