GRAIN CALLS
Corn: 8 to 12 cents higher
Soybeans: 4 to 8 cents lower
Wheat: Winter wheat 8 to 12 cents higher, HRS 4 to 8 cents higher
GENERAL COMMENTS: Corn rallied to forge fresh contract-highs overnight. Wheat followed on spillover strength. Soybeans turned lower as weaker crude prices weighed on soy oil heavily overnight. The U.S. dollar index is currently 15 points higher at 98.95. West Texas crude oil futures are roughly $1.50 lower at $85.55.
U.S.-Canada trade negotiations unraveled late last week, with 50% U.S. tariffs hitting billions of dollars of Canadian goods and Prime Minister Mark Carney vowing to retaliate in a dispute that looks poised to intensify. “The U.S. import taxes kicked in Saturday on hundreds of items from Canada, such as plywood, liquor, electrical equipment and hockey gear, totaling around $20 billion. The Trump administration invoked a Depression-era authority for the first time to justify the move,” said a Bloomberg report. Carney said he suspended talks with Washington and that his government would match those duties “dollar for dollar to protect our workers and businesses.” If he does, U.S. officials are pledging to present President Trump with options to escalate. The two sides blamed each other for the collapse. U.S. Trade Representative Jamieson Greer said the Canadian negotiators made 11th-hour demands that upended a draft deal worked out over days of negotiations. “Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days,” Greer said in a statement. A U.S. official, speaking on condition of anonymity late Friday, said there were no new talks scheduled, according to the Bloomberg report.
U.S. Treasury prices rose at the start of a potentially pivotal week for the U.S. bond market, with remarks from Federal Reserve Chairman Kevin Warsh and U.S. Treasury Secretary Scott Bessent likely to determine where yields go next. Warsh is in traders’ and investors’ crosshairs with his keynote speech at the Kansas City Fed’s annual Jackson Hole symposium Friday. He will be under pressure to address how the Fed will navigate tackling inflation that is running well above target amid Bessent’s intervention to bring down long-term borrowing costs. Another key question for investors is what the Treasury Secretary will do next. Having surprised the market last week with a plan to increase buybacks of longer-dated notes, bondholders now want specific details on a financial initiative touted by Bessent as a way of tackling the country’s vast budget deficit.
USDA Friday afternoon reported cattle and calves on feed for the slaughter market in the U.S. for feedlots with capacity of 1,000 or more head totaled 11.1 million head on August 1. The inventory was 2 percent above August 1, 2025. Placements in feedlots during July totaled 1.42 million head, 11 percent below 2025. Net placements were 1.37 million head. Placements were the lowest for July since the series began in 1996. During July, placements of cattle and calves weighing less than 600 pounds were 310,000 head, 600-699 pounds were 215,000 head, 700-799 pounds were 320,000 head, 800-899 pounds were 322,000 head, 900-999 pounds were 185,000 head, and 1,000 pounds and greater were 70,000 head. Marketings of fed cattle during July totaled 1.62 million head, 7 percent below 2025. Marketings were the lowest for July since the series began in 1996. Other disappearance totaled 55,000 head during July, 8 percent above 2025.
CORN: December corn continued its price uptrend overnight. Next key resistance will be in the $5.25 area. Current support for corn lies at the 10-day moving average of $4.98 ¾, and then at last week’s low close of $4.88.
SOYBEANS: November soybeans pulled back as soy oil saw sharp losses. Initial resistance is in the area of last week’s high at $12.44 1/2, backed by resistance at the july high of $12.56 1/2. Support is at the 190day moving average of $12.17 1/2, and then the $12.00 mark.
WHEAT: September SRW followed corn higher. First resistance is the July high close of $6.96 1/4, then $7.11 1/4. Support remains layered at the 10- and 40-day moving averages of $6.72 3/4, and $6.53 1/2.
LIVESTOCK CALLS
CATTLE: Choppy/higher
HOGS: Choppy/lower
CATTLE: Live and feeder cattle are still in a price downtrend at this time. However, Friday’s somewhat friendly Cattle on Feed report that showed placements down sharply could provide some support early this week. Choice boxed beef in the Friday afternoon report was $385.69.
HOGS: Lean hogs saw a mild bounce from short-covering on Friday, but lack firm fundamental support needed to break out of the current downtrend. The most recent CME lean hogs index is down 24 cents to $93.72. October hogs look for next support at the June low of $79.775.