Corn futures are mostly a nickel lower at midmorning.
· Corn futures are lower amid broad-based selling across the grain and soy markets.
· USDA rated 68% 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 improved 1.3 points to 374.8.
· Crop consultant Dr. Michael Cordonnier left his corn yield and production forecasts at 181.5 bu. per acre and 14.97 billion bu., respectively, noting July was generally favorable for corn pollination.
· Rainfall in the Missouri River Valley will be restricted enough for some net drying in the next 10 days, according to World Weather Inc. Very warm to hot temps are likely in the region today and Wednesday before some cooling is expected.
· December corn futures continue to face resistance at the 10- and 20-day moving averages, each trading around $4.12, while initial support lies at Monday’s low of $4.05 1/2.
Soybeans are mostly 16 to 18 cents lower, while soymeal futures are mostly around $3.50 lower. Soyoil is 50 to 70 points lower.
· Soybeans are facing followthrough selling in tandem with meal and soyoil as technical headwinds continue to limit buying.
· USDA rated the soybean crop as 67% “good” to “excellent” and 8% “poor” to “very poor.” On our weighted CCI, the soybean crop slipped 0.6 point to 366.3.
· Dr. Cordonnier kept his soybean yield and production estimates at 52 bu. per acre and 4.39 billion bu., respectively, noting August weather must remain favorable to achieve strong yields.
· November soybeans are finding initial support at Monday’s low of $10.18, while initial resistance is at the 10-day moving average of $10.50 1/2.
Winter wheat futures are mostly 3 to 5 cents lower, while HRS futures are around 5 to 6 cents lower.
· December SRW wheat futures have come off the earlier lows but continue to face pressure from U.S. dollar strength.
· USDA rated 74% of the spring wheat crop as “good” to “excellent” and 4% “poor” to “very poor.” On the CCI, spring wheat dropped 1.3 points to 382.7.
· Winter wheat harvest was 82% complete as of July 28, two points ahead of the five-year average, according to USDA.
· Concern about crops in Canada and the northwestern U.S. Plains continues due to dryness. There is also some concern about spring wheat in Russia and Ukraine, although recent cool weather and prospects for “some” showers has reduced some of the concern, though warming will return to Russia and Ukraine late next week while Canada trends drier, notes World Weather.
· December SRW wheat futures are trading within Monday’s range, with initial support at the previous session low of $5.39 1/2, while initial resistance stands at the 10-day moving average of $5.61 1/4.
Live cattle and feeders are mixed at midsession.
· August live cattle are easing from earlier highs, though solid underlying support should limit selling.
· Wholesale beef prices firmed $1.04 for Choice to $314.81 and $4.06 for Select to $301.52 on Monday, narrowing the Choice/Select spread to $13.29. Despite the jump, movement remained strong at 145 loads for the day.
· Traders are uncertain on this week’s cash cattle trend, with active trade not expected until late in the week.
· August live cattle are hovering around Monday’s close, with initial support lying at the previous session low of $186.125, while initial resistance remains at $188.475.
Hog futures are mixed at midsession.
· August hog futures are modestly firmer amid firming cash and wholesale fundamentals.
· The CME lean hog index is up another 44 cents to $92.29 as of July 26, matching the mid-May high and marking the 11th straight daily gain.
· The pork cutout value rose $1.61 to $106.78 on Monday amid gains in all cuts except primal hams. This marks the highest price since mid-August 2023. Movement totaled 243.8 loads for the day.
· August lean hogs are trading within Monday’s lower range, with support at the 20- and 40-day moving averages of $90.54 and $90.34. Initial resistance stands at the 10-day moving average of $92.47.