Corn futures are mostly a penny lower at midmorning.
· Corn futures are modestly lower on pressure from the soy complex.
· Crop consultant Dr. Michael Cordonnier left his U.S. corn yield forecast at 182.5 bu. per acre but has a neutral to lower bias as late-season dryness is not ideal for crops. His production forecast remained at 15.09 billion bushels.
· S&P Global Commodity Insights forecasts the U.S. corn crop at 15.220 billion bu. on a yield of 184 bu. per acre.
· USDA rated 64% of the corn crop as “good” to “excellent” and 12% “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 rose 1.5 points to 368.2.
· December corn continues to finding support at $4.04 1/4, which is backed by the 10-, 40- and 20-day moving averages, layered from $4.03 to $3.99 1/4. Initial resistance stands at $4.09.
Soybeans are mostly 16 to 18 cents lower, while soymeal futures are around $7.00 lower. Soyoil is 30 to 50 points lower.
· Soybeans have taken back all of Monday’s gains along with pressure on soymeal.
· Cordonnier left his U.S. soybean yield forecast at 53 bu. per acre, though he has a neutral to lower bias, maintaining his production forecast at 4.57 billion bushels.
· S&P Global Commodity Insights forecasts the soybean crop at 4.612 billion bu. on a yield of 53.5 bu. per acre.
· The soybean crop was rated 65% “good” to “excellent” and 10% “poor” to “very poor.” On our CCI, the soybean crop improved 0.4 point to 362.2.
· China imported a record 12.14 MMT of soybeans in August, up 23.2% from July and 29.7% above last year. The surge was driven by ships delayed at Chinese ports being cleared to unload and buyers making preparations for a potential increase in trade tensions after the November U.S. elections.
· Malaysia’s palm oil stocks jumped in August to their highest in six months, as monthly production reached a nine-year high amid a slowdown in exports.
· November soybeans dropped below the 40- and 10-day moving averages of $10.11 1/4 and $10.03 1/2, with next support at $9.94 3/4.
Winter wheat futures are 4 to 8 cents higher. HRS wheat is around 3 cents higher.
· Wheat futures are moderately firmer despite U.S. dollar strength.
· Planting moisture is limited in southern Russia and Ukraine where rain will be needed soon to ensure the crops get established favorably, according to World Weather Inc. Planting moisture is also needed in the U.S. Plains, although there is plenty of time for that to evolve.
· USDA reported spring wheat harvest at 85% done, two points ahead of the five-year average. Harvest was equal to or ahead of average in each of the six states. Top producer North Dakota’s harvest stood at 79% (78% average).
· December SRW wheat futures continue to face resistance at $5.81 1 /4, while initial support lies at $5.66 1/4.
Live cattle are mildly firmer while feeders are posting strong gains at midmorning.
· Feeders are posting corrective gains while buying is limited in live cattle futures.
· Cash cattle averaged $181.18 last week, down $2.63 from the previous week. That was the sixth straight weekly decline and the lowest average price since mid-February.
· Choice boxed beef slid 89 cents on Monday to $308.52 while Select rose $2.37 to $298.49, narrowing the $10.03. Movement totaled 141 loads for the day.
· October live cattle are trading narrowly within Monday’s range, limited by resistance at the 10- and 20-day moving averages, currently trading at $177.92 and $177.95, while initial support lies at $176.00.
Hog futures are mostly firmer at midsession.
· October hog futures are marginally weaker amid persisting cash weakness. Deferred contracts are mildly firmer.
· The CME lean hog index is down 50 cents to $85.74 as of Sept. 6, the lowest since April 2.
· The pork cutout value dropped 38 cents on Monday to $95.72. Movement totaled 278.8 loads for the day.
· October lean hogs are trading within Monday’s range, pivoting around the 20- and 100-day moving averages of $79.02 and 78.98. Initial support is at $78.18 with initial resistance at $79.73.