Corn futures are mostly 14 to 16 cents lower at midmorning.
· Corn futures are facing sharp selling pressure to begin the week, in tandem with soybeans and SRW wheat futures.
· USDA reported daily corn sales of 135,636 MT to unknown destinations. Of the total, 50,800 MT is for delivery during 2023-24 and 84,836 MT is for 2024-25.
· Brazil’s safrinha corn harvest was 63% complete as of last Thursday, according to AgRural. The pace was more than double last year’s for the date and the fastest since AgRural began tracking data in 2013.
· Beryl built into a hurricane before making landfall along the Texas Gulf Coast between Houston and Galveston shortly before dawn. World Weather Inc. says the storm should move steadily to the north and eventually to the northeast after landfall, spreading torrential rain, flooding and windy conditions through eastern Texas to southeastern Missouri and southern Illinois. Damage to agricultural areas is expected to be limited. Overall conditions remain non-threatening.
· USDA reported corn export inspections of 1.024 MMT (40.3 million bu.) during the week ended July 4, up 192,710 MT from the previous week and near the upper end of the pre-report range of estimates from 600,000 MT to 1.1 MMT.
· December corn dropped through the June 28 low at $4.12. Next support is the psychological $4.00 mark.
Soybeans are mostly 23 to 33 cents lower. Soymeal futures are $8.00 to $11.00 lower. Soyoil is mostly 75 points lower.
· Soybeans are under heavy pressure to open the week amid broad-based selling in the grain and soy markets, more than erasing last Friday’s gains.
· After remnants of Hurricane Beryl move through the Mid-South and into the eastern Midwest, warmer, drier weather will develop. But there isn’t expected to be any serious moisture or heat stress for the next 10 days to two weeks.
· USDA reported soybean export inspections of 273,321 MT (10.0 million bu.) during the week ended July 4, down 46,507 MT from the previous week and near the low-end of the pre-report range from 200,000 to 400,000 MT.
· November soybeans plunged below the 10-day moving average of $11.13 1/2 and are testing support at the July 1 low of $10.97. Initial resistance stands at the 20-day moving average of $11.27 3/4.
Wheat futures are mostly 16 to 22 cents lower.
· Wheat futures have more than wiped out last Friday’s corrective gains amid the broad selloff in the grain and soy markets.
· USDA reported wheat export inspections of 341,005 MT (12.5 million bu.) during the week ended July 4, up 5,770 MT from the previous week, but near the low-end of the pre-report expectations from 275,000 to 650,000 MT.
· Russia’s Central Region, middle Volga River Basin and Southern Region, along with Ukraine and western Kazakhstan, will remain dry and warm biased for the next 10 days.
· December SRW futures dropped below the 10-day moving average of $5.98 1/2, while next support lies at $5.88 1/2. Initial resistance stands at $6.14.
Live cattle are mostly firmer, while feeders are posting strong gains.
· August live cattle are modestly firmer amid strong cash fundamentals.
· Wholesale beef prices rose on Friday, with Choice up 59 cents to $330.43, while Select rose 68 cents to $305.06. Movement was light, however, at 89 loads.
· The U.S. exported 258.9 million lbs. of beef during May, down 589,000 lbs. (0.2%) from April and 7.8 million lbs. (2.9%) less than last year. According to the U.S. Meat Export Federation, the value of beef exports totaled $902.4 million in May, the highest since June 2023.
· August live cattle failed to find sustained buying above initial resistance at $186.775. Support is at Friday’s low of $185.65.
Hogs are mixed at midsession.
· July hog futures are modestly weaker as technical resistance continues to curb buying efforts.
· The CME lean hog index is down 25 cents to $89.20 as of July 4, ending two days of mild gains.
· The pork cutout value rose $1.28 on Friday to $94.91, despite a $6-drop in primal ribs. Movement totaled 253.2 loads.
· U.S. pork exports totaled 584.7 million lbs., down 71.2 million lbs. (10.9%) from April and 35 million lbs. (5.7%) less than last year.
· China’s sow herd totaled 39.96 million head at the end of May, according to the ag ministry, down 6.2% from last year. Hog slaughter during the first five months of the year rose 0.8% to 136.04 million head. The value of pork exports totaled $715.8 million, down 2%, according to the U.S. Meat Export Federation.
· July lean hogs gapped lower at the open, though sellers are being limited by support at the 10-day moving average of $89.61, which is backed by further support at $89.53 and $89.18. Initial resistance stands at $90.00.