GRAIN CALLS
Corn: 3 to 6 cents higher.
Soybeans: 8 to 12 cents higher.
Wheat: Winter wheat 1 to 2 cents lower; spring wheat steady to 1 cent higher.
GENERAL COMMENTS: Corn extended recent corrective gains overnight, while soybeans also firmed as weather is now expected to be warmer and drier than previously expected. Wheat struggled to find buyers overnight.
World Weather Inc. said, “Weather has not changed dramatically enough to seriously change world crop development potentials overnight; however, a little more ridge building over the U.S. Midwest for a little while late this weekend into next week brings a little heat and less rain and that has some of the market trade a little more interested. The high pressure ridge does not stay over the Midwest for more than a few days, although it will be present long enough to induce much warmer temperatures and less rain which will firm the topsoil and induce a little moisture and heat stress to crops that have seen the lightest rainfall and the most limited soil moisture in recent weeks. Most computer forecast models shift the high pressure ridge back to the west toward the end of this month bringing back some ‘cooler’ conditions and inducing a little more shower and thunderstorm activity in key Midwestern crop areas. The pattern looks very normal for summer and subsoil moisture is favorable enough to carry most crops through the period without too much difficulty, but it will be important that rain and cooling return as advertised to maintain crop integrity.”
Markets are keen to any trade developments as global trading partners scramble to get deals in place ahead of President Donald Trump’s Aug. 1 deadline to raise tariffs. Traders are most interested in dealings with major trading partners like Japan, South Korea, Mexico, Canada and the European Union, though other negotiations are also in the works. The trade situation remains fluid, with changes in some regards on a daily basis.
The Trump administration has launched a formal Section 301 investigation into Brazil’s trade practices, raising the threat of sweeping new tariffs and intensifying bilateral tensions. The probe, targets Brazil’s regulatory actions against American tech firms and broader policies that Washington says discriminate against U.S. companies and products. The investigation will examine a wide array of Brazilian measures, including: digital trade restrictions, ethanol market access, intellectual property enforcement, judicial interference, tariff and non-tariff barriers and environmental policies.
USDA reported daily soybean sales of 120,000 MT to unknown destinations for 2025-26.
CORN: December corn futures have retraced 23.6% of the decline from the February high to Monday’s contract low, stopping right at the 20-day moving average overnight. Resistance is layered from the overnight high of $4.25 3/4 to the $4.35 area, with a 38.2% retracement at the upper bounds of that range. Near-term support extends from the 10-day moving average near $4.21 1/4 to the 5-day average at $4.18 1/4.
SOYBEANS: November soybean futures are consolidating above the recent lows, forming a potential bear flag on the daily chart. Monday’s low at $9.98 1/4 stands as near-term support. Near-term resistance is at the 10-day moving average of $10.18 1/4 and the 20-day average near $10.29.
WHEAT: December SRW futures are leaning on support at $5.56 3/4. Violation of that support would open the downside to the $5.50 level, with contract-low support at $5.43 3/4. Resistance is layered in the $5.60 to $5.88 area.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy.
CATTLE: Live cattle and feeders are expected to open higher on followthrough buying after sharp gains and a high-range close on Tuesday. Live cattle remain at steep discounts to the cash market, which should also encourage buying. But recent price action has been back-and-forth and failure to post a new high or find sustained buying above last week’s high could trigger a corrective pullback. Cash cattle negotiations have yet to get underway, with most cash sources expecting generally steady prices, though a wide price range is again likely. Wholesale beef prices firmed 65 cents to $377.72 for Choice and fell $2.00 to $362.58 for Select on Tuesday.
HOGS: Lean hog futures are expected to open with a mixed tone in choppy trade. August lean hog futures, which are now the lead-month contract, finished Tuesday at a $3.265 discount to today’s cash hog index quote, which could encourage some buying. But the cash index and pork cutout appear to have posted seasonal tops. The CME lean hog index is down 6 cents to $107.19 as of July 14. Pork cutout firmed 17 cents to $114.02.