GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 1 to 3 cents higher.
Wheat: 2 to 5 cents higher.
GENERAL COMMENTS: Grain and soybean markets triggered some corrective buying after pressure early in the overnight session. While the modest price strength is expected to carry over the open this morning, we suspect buyer interest will remain limited amid favorable weather and trade uncertainties.
Regular rains will continue across the Midwest this week, with cooler temps likely, maintaining favorable conditions. However, some of the rainfall expected in the Southern Plains, central Delta, southern Tennessee River Basin and interior southeastern states will become lighter and may not counter evaporation rates very well leading to a gradual drying trend, despite some periodic showers, according to World Weather Inc. Drought will continue in the far western United States, including the Pacific Northwest.
President Donald Trump sent letters to Mexico and the European Union threatening 30% tariffs on imports, effective Aug. 1, with higher levels threatened if negotiations on comprehensive trade deals remain stalled. European Commission President Ursula von der Leyen announced the EU will extend its suspension of planned countermeasures against U.S. tariffs through early August, buying more time for negotiations. The EU has prepared a list of tariffs worth 21 billion euros ($24.52 billion) on U.S. goods if they fail to reach a trade deal. Mexican officials stated they are working to secure an alternative to the tariffs before the Aug. 1 deadline. The EU and Mexico together account for about one-third of total U.S. goods imports.
Trade negotiations are ongoing with other key trading partners, including Japan, South Korea, Taiwan and others ahead of Trump’s Aug. 1 deadline for increasing tariffs.
China imported 12.26 MMT of soybeans in June. While that was down 1.66 MMT (11.9%) from the all-time high in May, it was a record for the month and up 1.15 MMT (10.4%) from last year. Through the first half of 2025, China imported 49.37 MMT of soybeans, up 1.8% from the same period last year.
CORN: December corn futures rebounded from the contract low of $4.07 1/2 overnight, pushing above the 5-day moving average, though the path to sustained corrective gains will be difficult. Resistance is layered from $4.21 1/2 to $4.37, where the 10-, 20-, 40- and 50-day moving averages stand.
SOYBEANS: November soybean futures rebounded from the drop below $10.00, with the overnight low of $9.98 1/4 now near-term support. The April low of $9.71 1/4 stands as stronger support. Near-term resistance is in the $10.23 to $10.35 range, where the 10-, 20-, 40- and 50-day moving averages stand.
WHEAT: December SRW futures remain in the lower end of the two-month sideways range. Near-term support extends from $5.60 to $5.56 3/4. Near-term resistance extends from $5.78 to $5.88 1/2.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Lower.
CATTLE: Live cattle and feeders are expected to open higher on followthrough buying after strong closes on Friday. Live cattle remain at steep discounts to the cash market, which saw higher trade on Friday. The combination of higher cash cattle prices and sharply lower wholesale prices last week pushed beef packer margins back into the red after a short stint in positive territory. While negative margins may give packers pause on aggressively bidding for cash cattle this week, supplies remain tight relative to near-term needs. Wholesale beef prices fell $6.02 to $378.64 for Choice and $4.37 to $366.49 for Select on Friday.
HOGS: Lean hog futures are expected to open lower after a technical breakdown last Friday that accelerated the pullback from last month’s seasonal top. Discounts to the cash hog index may limit seller interest after the open. The uptick in the CME lean hog index proved to be only one day, with it down 4 cents to $107.10 as of July 10. Pork cutout fell 68 cents to $113.47 on Friday, with primal bellies plunging $12.56.