GRAIN CALLS
Corn: Unchanged to 4 cents higher
Soybeans: 10 to 14 cents higher
Wheat: Winter wheat 2 cents lower to 2 cents higher, HRS 4 cents lower to unchanged
GENERAL COMMENTS: Soybeans went higher overnight, supported by a bounce in soy oil futures from yesterday’s sell-off. Corn also worked higher but remains below key resistance levels. Winter wheat markets were mixed, with technical pressure dragging HRW lower. The U.S. dollar index is currently roughly 50 points lower at 99.20. West Texas crude futures are 15 cents lower at $84.80.
The National Weather Service today said a cool air mass arriving from southern Canada will push a cold front across the northern-tier states over the next couple of days. Clusters of organized, heavy showers and thunderstorms will continue traveling eastward across the central Plains toward the mid-Mississippi Valley this morning. Monsoonal showers and thunderstorms will be most active during the late-day hours across the Four Corners states. The southern tier of the Lower 48 remains mired in a steamy air mass even by mid-to-late August standards. Record highs and record warm minimum temperatures will be common with the Southeast today. Some cases of record-breaking warmth are also expected in the Desert Southwest and southern Plains as temperatures dip into the 40s near the Canadian border in the upper Midwest.
The pump price of diesel in the U.S. hit $5.47 a gallon on Tuesday, the Financial Times reported, near its all-time high of $5.82 as wars in the Middle East and Europe undercut production and continue to tighten global supplies. The report noted an 8% jump in prices in the past month, with the “crack spread” – the difference between the cost of diesel and crude – hitting a record. The report noted the price surge has driven up costs for truckers and farmers and is seen potentially reigniting inflation and squeezing consumers. These are body punches to the middle of the economy,” veteran fuel-market analyst Tom Kloza told the FT. “I think they’re going to have a pretty dramatic impact.”
The Trump administration delayed 50% tariffs on Canadian products for three days, citing a tentative agreement to resolve a trade dispute. The White House said the duties were halted after Canada expressed a commitment to remove discriminations on U.S. autos, dairy, and alcohol. Canadian Prime Minister Mark Carney said substantial progress has been made, but important work still needs to be done, and neither side disclosed whether earlier sticking points would be resolved. President Trump announced the decision less than two hours before the tariffs were set to take effect. He said on social media he was pausing the tariffs “based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!”
CORN: December corn futures look to test resistance at the July high of $4.92 again today, after falling back below the level in trade yesterday. Next resistance beyond that is the key $5.00 mark. Corn futures are supported by the 10-day moving average of $4.79 1/2.
SOYBEANS: November soybeans pushed through key resistance overnight. The next firm resistance is at the July 27 high of $12.50. Support stems from the 10-day moving average of $12.01 1/4 and then this week’s low of $11.88 1/4.
WHEAT: September SRW wheat went lower early in the overnight but recovered those losses by the end. SRW wheat finds support layered from the 10- and 40-day moving averages of $6.58 3/4 and $6.47 1/2, respectively. First resistance is in the area of this week’s open at $6.77 1/4.
LIVESTOCK CALLS
CATTLE: Choppy/higher
HOGS: Choppy/lower
CATTLE: Live cattle and feeder futures are expected to open choppy to higher this morning. Cash cattle trade remains limited compared to futures, but a $10.04 rise in boxed beef prices yesterday turned cattle markets higher at mid-day yesterday, and that strength looks to continue in the open.
HOGS: Lean hog futures are expected to open choppy to lower. The price downtrend in hogs looks to continue with little technical or fundamental support available. The CME lean hogs index is down 21 cents to $95.47.