Note: Grain and livestock markets will trade normal hours today. All markets and government offices are closed on Thursday, July 4, for the Independence Day holiday. Grain and livestock markets resume trading at 8:30 a.m. CT on Friday, July 5. We will only send out two reports Friday – “First Thing Today” around 8:00 a.m. CT and “After the Bell” briefly highlighting the day’s price action after the closes. Happy Fourth of July from your Pro Farmer staff.
Corn futures are mostly 2 cents lower at midmorning.
· Corn is favoring the downside in narrow trade, though soybean strength and a weaker U.S. dollar are limiting the downside.
· World Weather Inc. says a good mix of rain and sunshine is expected outside of the northern Corn Belt during the next 10 days. Temps will be milder than usual across the central and eastern states for the coming week and a little closer to normal next week.
· Ethanol production averaged 1.064 million barrels per day (bpd) during the week ended June 28, up 2% from the previous week and 0.4% above year-ago. Ethanol stocks rose 171,000 barrels to 23.594 million barrels.
· December corn is testing support at $4.18 1/4, with additional support at $4.15 1/2. Initial resistance stands at $4.25 1/4.
Soybeans are mostly 7 to 11 cents higher. Soymeal futures are modestly weaker to $2.00 higher Soyoil is 70 to 80 points higher.
· Soybeans are higher on corrective buying for a third straight day as soyoil strength continues to support the market.
· USDA reported daily soybean sales of 110,100 MT to unknown destinations. Of the total, 55,100 MT was for 2023-24 and 55,000 MT for 2024-25.
· Heavy rain and some continued flooding will impact areas from South Dakota to Wisconsin and northern Iowa over the next few days, according to World Weather.
· November soybeans have extended above the 10-day moving average of $11.14 1/4, with next resistance at the 20-day moving average of $11.32 1/2. Meanwhile, initial support lies at Tuesday’s low of $11.08 3/4.
SRW wheat futures are narrowly mixed, HRW is around 2 cents lower and HRS futures are around 4 to 6 cents lower.
· Wheat futures are mostly weaker amid light volume ahead of the Thursday’s holiday.
· Very warm temps and dry conditions are expected in eastern Ukraine, Russia’s Southern Region, southeastern portions of Russia’s Central Region, the middle Volga River Basin and western Kazakhstan.
· Overnight, Japan tendered to buy 65,000 MT of feed wheat, while Tunisia tendered to buy 100,000 MT of optional origin soft milling wheat.
· December SRW futures are finding support at the 10-day moving average of $5.98 3/4, while resistance stands at Tuesday’s high of $6.12 3/4.
Live cattle are moderately firmer, while feeders are sharply higher.
· August live cattle are extending Tuesday’s gains as wholesale and cash fundamentals continue to support futures.
· Despite Thursday’s holiday, there appears to be no urgency for packers to actively seek cattle via higher bids again this week. And following three weeks of record cash trade, feedlots are not looking to move cattle at lower prices. Cash cattle activity will likely take place Friday.
· Wholesale beef prices rose on Tuesday, with Choice firming $1.21 to $330.39, while Select increased a modest 7 cents to $306.48, widening the Choice/Select spread to $23.91. Movement totaled 115 loads for the day.
· Chinese wholesale beef prices have dropped 18% from last year’s peak to around 62 yuan ($8.53) a kilogram as supplies outpace demand. Beijing pushed farmers to increase domestic beef production and encouraged more exports. But the slowing economy has drug local prices to a five-year low as supplies pile up in frozen storage.
· August live cattle are facing resistance at $186.10, while Tuesday’s close of $185.10 and the 10-day moving average of $184.84 serves as near-term support.
Hogs are mixed at midsession.
· Nearby hog futures are modestly firmer, though technical resistance continues to curb buying.
· The CME lean hog index is up 14 cents to $89.31, breaking a recent string of losses.
· The pork cutout value dropped $1.09 on Tuesday to $94.32 despite a $3.66 gain in primal bellies as all other cuts aside from picnics declined.
· July lean hogs have tested resistance at the 10-day moving average, currently trading at $89.92, for the first time since June 20, while initial support remains at $88.88. Additional resistance/support are at $90.48 and the June 26 low of $88.65.