GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 2 to 4 cents lower.
Wheat: 1 cent lower to 1 cent higher.
GENERAL COMMENTS: Corn, soybeans and wheat each saw an extension of recent strength early in the overnight session before testing technical resistance, which spurred selling pressure as bears continue to hold the near-term technical advantage. Each market trading in lockstep with one another is another indication that markets are somewhat on auto-pilot and will continue to follow the path of least resistance until a catalyst shifts sentiment. Outside markets are modestly supportive this morning as front0month crude oil futures are slightly higher while the U.S. dollar index is around 150 points lower.
USDA reported daily sales of 125,000 MT of corn for delivery to unknown destinations during the 2025-26 marketing year.
World Weather Inc. early this morning reports a large cluster of thunderstorms that evolved in Montana Thursday afternoon advanced across much of North Dakota and far southeastern Saskatchewan, Canada, to southern Manitoba and western Minnesota overnight. The storms produced damaging wind, hail and heavy rainfall. “The system will likely be classified as a Derecho, although an assessment of the wind damage will need to be made before the event is officially classified as a Derecho,” said the forecaster. This is the second Derecho of the season with the first event reported last month in South Dakota, southwestern Minnesota and parts of Iowa.”
Bloomberg reports President Trump’s advisers are impressed with Federal Reserve Governor Christopher Waller’s willingness to move on policy based on forecasting and his deep knowledge of the Federal Reserve system. Waller, along with Kevin Warsh and Kevin Hassett, is a top candidate to serve as the central bank’s chair, according to Bloomberg. White House Spokesman Kush Desai said that “President Trump will continue to nominate the most competent and experienced individuals” for personnel decisions, but any discussion about them should be regarded as speculation unless it comes from Trump himself.
The United Nations Food and Agriculture Organization (FAO) Food Price Index increased 1.6% to 130.1 points in July, the highest level since February of 2023, as increases in prices for meat and vegetable oils offset declines in cost for cereals, dairy and sugar. Overall, the food price index was 7.6% higher than in July of 2024 yet remained 18.8% below its peak reached in March 2022. Meat prices increased 1.2% to reach a new record high, primarily driven by higher bovine and ovine meat prices, along with a slight increase in poultry meat prices.
CORN: December corn futures continue to undergo persistent technical selling. Recent strength push prices to test $4.08 3/4, the 10-day moving average, which spurred additional selling pressure overnight. Support comes in at the psychological $4.00 mark on persistent weakness.
SOYBEANS: November soybean futures found staunch resistance at $9.96 1/2 overnight, which spurred technical selling pressure. Support comes in at $9.85 on persistent weakness.
WHEAT: December SRW futures made a fresh weekly high before facing profit-taking overnight. Resistance stands at $5.43 3/4 on persistent strength. Tentative support stands at $5.39 1/4 then $5.36 on added selling.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle and feeders are expected to open higher in a continuation of recent strength. Some profit-taking is possible given overbought conditions on the daily bar chart, but cash fundamentals remain fully supportive of higher prices. Cash cattle trade remains slow this week, with trade likely to pick up today. Given sharply higher futures, higher cash trade is anticipated. Wholesale beef ended Thursday sharply higher again, with Choice cutout surging $4.08 to $378.94 while Select climbed $2.39 to $353.75.
HOGS: Lean hog futures are expected to open with a mostly firmer tone amid technical buying. October futures were supported by moving average support on Thursday which is expected to continue to support prices, though waning cash fundamentals could induce some additional selling pressure. The CME lean hog index climbed 50 cents to $110.10 as of Aug. 6, reversing some of the recent weakness. Pork cutout climbed $1.11 to $116.33 Thursday, led by strength in hams.