GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 2 to 4 cents higher.
Wheat: 2 to 5 cents higher.
GENERAL COMMENTS: Soybeans and wheat saw an extension of recent gains overnight while corn saw profit-taking following a test of key technical resistance. Tensions ramping up in the Middle East spurred volatility overnight, which could provide a lift for grains. Front-month crude oil futures are solidly higher this morning while the U.S. dollar index is up around 200 points.
USDA reported daily sales of 472,000 MT of soybeans for delivery to China, with 136,000 MT for delivery during 2025-26 while the remaining 336,000 MT is for delivery during 2026-27.
The U.S. launched strikes on Iran early today, hours after it revoked a license authorizing the sale of Iranian oil in retaliation for what the U.S. said were Tehran’s attacks on ships in the Strait of Hormuz. Iran hit back with strikes on Bahrain and Kuwait. President Trump said later that the interim agreement with Iran was “over” but he would allow talks to continue. That raised concerns that the wider conflict in the Middle East could resume — and oil prices shot up. “For me, I think it’s over,” Trump responded when asked about the status of ceasefire and as reported by the Associated Press. He added that U.S. representatives can continue negotiations but he cast doubt on the outcome. “They can talk, but I think they’re wasting their time,” he said. The attacks on shipping threatened efforts to resume fuel shipments in the Strait of Hormuz that are crucial to the global economy. “They are scum,” Trump said of Iran’s leadership. Crude oil prices spiked, the U.S. stock indexes sold off sharply and bond yields up-ticked on the renewed military action in the Middle East. “Iranian oil at sea left in limbo after U.S. revokes 60-day waiver,” read a Bloomberg headline overnight.
“China has purchased more U.S. soybeans, extending a wave of buying as agricultural trade between the world’s two largest economies gathers pace. State-owned trading firm Cofco Corp. booked at least another five cargoes overnight for loading mainly between September and October, according to people familiar with the matter, who declined to be named as they weren’t authorized to speak to the media. The purchases follow at least six cargoes booked earlier in the week,” said a Bloomberg report. Cofco couldn’t immediately be reached for comment. A soybean cargo is typically around 60,000 tons. As of the end of last month, USDA reported Chinese buyers had committed to 200,000 tons of new- crop U.S. soybeans.
The National Weather Service today said across the Southeast, hot and humid conditions will persist and likely intensify through midweek. Temperatures will also remain above normal across portions of the Southwest. Meantime, showers and severe thunderstorms will occur from the upper/middle Mississippi Valley to the central Plains today. There is a slight risk (level 2/5) of severe thunderstorms over parts of those regions. In addition, showers and thunderstorms will develop over parts of the Mid-Atlantic/Central Appalachians, into the southern Ohio/Tennessee Valleys, the lower Mississippi Valley, and parts of the southern Plains.
CORN: December corn futures found stiff resistance at $4.66 1/2, the converged 100-day and 200-day moving averages, overnight. A break above that mark would be key technically. Support comes in at $4.57 3/4 on persistent selling.
SOYBEANS: November soybean futures are back above $12.00. Resistance stands at $12.07 3/4, the May 13 close, on continued strength. Bulls are looking to hold prices above $11.90 on profit-taking.
WHEAT: September SRW wheat continue to work higher. Bulls are working to overcome resistance from the June 18 high of $6.26 1/2 on continued strength. Support comes in at $6.13 1/2 on a turn lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open with a mostly firmer tone on profit-taking. Sellers have pushed fats lower 10 out of the last 13 sessions. Futures are well below the cash market as traders anticipate the recent downtick in cash cattle to continue. Cash trade has been slow to initiate this week with no reported trade taking place. Choice beef slid another 71 cents to $385.77 Tuesday.
HOGS: Hog futures are expected to open with a mostly firmer tone in a continuation of the recent uptrend. Bulls maintain a slight technical advantage, but sellers pushed futures near technical support Tuesday that bulls need to hold today. The CME lean hog index is up 11 cents to $91.66 as of July 6, making up for most of yesterday’s loss. Pork cutout rose $1.66 to $97.91 Tuesday, led by gains in bellies.