Corn futures are 5 to 6 cents lower at midmorning.
· Corn futures are facing followthrough selling, dropping prices to the lowest level since December 2020, despite supportive outside markets.
· USDA reported daily corn sales of 104,572 MT to unknown destinations for 2024-25.
· Ethanol production averaged a record 1.109 million barrels per day (bpd) during the week ended July 26, up 14,000 bpd (1.3%) from the previous week and 3.9% above last year. Ethanol production topped the previous record of 1.108 million bpd during the week ended Dec. 1, 2017. Ethanol stocks increased 250,000 barrels to 23.973 million barrels.
· Overnight, Taiwan purchased 65,000 MT of Brazilian corn.
· December corn futures have dropped below the recent low and psychological support at $4.00. Initial resistance stands at the 20- and 10-day moving averages, each trading around $4.11.
Soybeans are mostly 3 to 5 cents lower, while soymeal futures are mostly around $3.00 lower. Soyoil is narrowly mixed.
· Soybeans are lower for the fourth straight session amid improving U.S. production prospects and looming demand woes.
· World Weather Inc. notes timely rainfall and less heat in most Midwest areas should maintain a good environment for crop development.
· China’s soybean crush volume in the week ended July 26 rose from the previous week, while the country’s soymeal stocks reached a record high, according to the latest figures from the China National Grains & Oils Information Center. Soybean stocks also continued to rise, with inventories at major crushing plants totaling 7.12 MMT as of July 26, up 6% from a week earlier, 14.3% on the month and 29.5% year-over-year.
· November soybeans dropped below support at Monday’s low of $10.18, with next support at the psychological $10.00 mark. Initial resistance is at July 18 low at $10.31 3/4.
Wheat futures are mostly 5 to 9 cents lower, led by HRW contracts.
· Wheat futures are lower despite a notably weaker U.S. dollar.
· Rains across much of Australia this month have improved wheat production prospects, with private crop forecasters now calling for the crop to be as big as 30 MMT. In 2023-24, Australia produced 26 MMT of wheat. While production prospects have improved, demand from China is expected to weaken significantly.
· Ukraine exported 3.4 MMT of grains during July, up sharply from 2.2 MMT during the month last year, based on ag ministry data.
· Ukrainian grain traders union UGA cut Ukraine’s 2024 combined grain and oilseeds crop forecast by 2.8 MMT to 71.8 MMT due to a heatwave across the country.
· December SRW wheat futures are testing initial support around $5.42, which is backed by last week’s low of $5.39 1/2. Initial resistance stands at $5.55.
Live cattle are mildly weaker, while feeders are firmer at midmorning.
· August live cattle are modestly weaker in narrow trade as traders await direction from the cash market.
· After packers raised cash cattle bids and purchased relatively large amounts of cattle last week, expectations were this week’s trade would be pushed deep into the week. That’s indeed the case, as bids and asking prices haven’t surfaced. With showlists higher in Kansas, Nebraska and Colorado, most cash sources expect steady/weaker cash prices.
· Wholesale beef prices slipped on Tuesday, with Choice falling 33 cents to $314.48, while Select dropped 14 cents to $301.38, further narrowing the Choice/Select spread to $13.10. Movement totaled 119 loads for the day.
· August live cattle are trading within Tuesday’s range, with initial support lying at the 10-day moving average of $186.19, while initial resistance stands at $187.91.
Hog futures are slightly higher at midsession.
· August hog futures are firmer amid persisting cash strength.
· The CME lean hog index is up another 30 cents to $92.59 as of July 29, eclipsing the mid-May high. Instead of what appeared at the time to be an earlier-than-normal seasonal peak, the cash index will now post a later-than-typical top.
· The pork cutout value fell $1.18 on Tuesday to $105.60 amid declines in all cuts except primal ribs.
· August lean hogs are finding initial support at the 20- and 40-day moving averages, currently trading at $90.61 and $90.23, while initial resistance stands at the 10-day moving average of $92.42.