Note: USDA’s weekly export inspections data is delayed due to technical difficulties.
Corn futures are mostly unchanged to a penny lower at midmorning.
· Corn futures are modestly weaker despite notable weakness in soybeans and negative outside markets.
· Forecasts call for periodic rains across the Corn Belt with northern and eastern areas expected to be the wettest as moisture moves over the heat dome to the west.
· Taiwan tendered to buy 65,000 MT of corn from the U.S., Brazil, Argentina or South Africa over the weekend.
· AgRural estimated Brazil’s safrinha corn crop harvest at 91% complete as of last Thursday, notably ahead of last year’s pace of 55% for the same period.
· December corn futures gapped lower at the open but continue to find support at $4.05 1/2. Resistance stands at the 10- and 20-day moving averages of $4.11 3/4 and $4.12 3/4.
Soybeans are mostly 17 to 29 cents lower, while soymeal futures are unchanged to nearly $5.00 lower. Soyoil is 50 to 120 points lower.
· Soybeans are extending Friday’s weakness to the lowest level since January 2021 as forecasts indicate most production areas will receive rain this week.
· Most areas of the Midwest are expected to receive rain this week, while there is no excessive heat in the forecast, as a ridge of high pressure will stay to the west. Northern and eastern areas will be wettest as rains moves over the western heat dome. The Southern Plains will be hot, though some rains are likely. The Delta will be dry over the next 10 days, while the Southeast will see frequent rains.
· November soybeans gapped lower at the open and have extended to a fresh near-term low, with next support at $10.00. Initial resistance stands at the 10-day moving average of $10.51 3/4.
Winter wheat futures are mostly 5 to 8 cents higher, while HRS futures are mostly 3 cents higher.
· Wheat futures are favoring the upside despite selling across the grain and soy complexes and negative outside markets.
· A high-pressure ridge will return to western Russia, Belarus, the Baltic States and western Ukraine during the second half of next week and into the following weekend inducing warmer temps and removing the opportunity for rain, according to World Weather Inc.
· Russian wheat export prices were largely unchanged last week, and analysts say that prices have reached a bottom as farmers are reluctant to sell due to a sharp fall in profitability.
· December SRW wheat futures edged to a fresh low of $5.39 1/2, which now serves as initial support, while initial resistance stands at the 10-day moving average of $5.62 1/2.
Live cattle are moderately weaker, while feeders are sharply lower.
· August live cattle are pulling back after notching solid gains last week.
· Cash cattle trade through the first four days of last week indicated a likely increase in the average cash cattle price.
· Wholesale beef prices rose on Friday, with Choice gaining $1.31 to $313.77, while Select increased $2.35 to $297.46. Movement declined, however, to 101 loads for the day.
· August live cattle are finding support at $188.11, while resistance stands at last week’s high of $189.325.
Hog futures are posting sharp losses at midsession.
· August hog futures gapped lower at the open and are posting strong losses amid corrective selling following recent strength.
· China slaughtered 160.35 million head of hogs in the first half of the year, down 0.7% from the same period last year. China’s sow herd stood at 40.38 million head at the end of June, down 6.0% from last year.
· The CME lean hog index is up another 46 cents to $91.85 as of July 25, extending the string of gains to 10 days. During that span, the cash index has risen $3.47 and is just 44 cents below the mid-May peak.
· The pork cutout value slipped 78 cents on Friday to $105.17, led lower by primal ribs and butts. Movement totaled 262.8 loads for the day.
· August lean hogs gapped lower at the open and are testing support at the 40- and 20-day moving averages of $90.37 and $90.46. Meanwhile, initial resistance stands at $93.20.