GRAIN CALLS
Corn: 2 to 4 cents higher.
Soybeans: 9 to 11 cents higher.
Wheat: 7 to 10 cents higher.
GENERAL COMMENTS: Waning hope for peace led to strength in corn, soybeans and wheat overnight, reversing a significant chunk of last week’s losses. Front-month crude oil futures are favoring the upside this morning but found resistance at the $100-mark. The U.S. dollar index is up around 40 points, rebounding from recent weakness.
The U.S. and Iran remain far apart on a framework to end their war and reopen the Strait of Hormuz, with President Trump calling Iran’s reply to his proposed peace plan unworkable. Iran demanded a lifting of the U.S. naval blockade and sanctions relief, while maintaining a degree of control over traffic through Hormuz, and insisted that any agreement must result in an immediate end to fighting. The impasse means Hormuz remains largely blocked, with Iran and other Persian Gulf countries unable to export energy supplies through the waterway, and a ceasefire that took hold just over a month ago remains fragile.
A U.S. trade delegation is likely to visit India for talks, a New Delhi official said Monday and as reported by Bloomberg, as the two sides continue negotiations toward a bilateral agreement. “The visit dates have not yet been decided, the official told reporters, asking not to be identified as the discussions are not public. Last month, a team of Indian trade officials visited Washington to conclude the first phase of a trade pact agreed in February. The two countries reached that understanding before the U.S. Supreme Court struck down President Trump’s sweeping reciprocal tariffs,” said the report. “India’s Commerce and Industry Minister Piyush Goyal last month said that while the initial phase is complete, efforts are now focused on securing preferential access for Indian exports to the U.S. market relative to competitors.”
CORN: July corn futures are trading near resistance at $4.75. Continued strength finds resistance at $4.80. Bulls are looking to hold support at $4.72 1/2 then $4.70 on resurgent selling.
SOYBEANS: July soybeans are nearing least week’s highs. Stiff resistance stands at the psychological $12.25 mark on continued strength. Support persists at the $12.00 mark on a reversal lower.
WHEAT: July SRW futures continue to rebound. Stiff resistance stands at $6.37 3/4 on continued strength. Bulls are looking to hold support at $6.25 then $6.20 on a turn lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone supported by technical strength. Bulls are looking to defend support at the 20-day moving average for the third consecutive session. Cash cattle trade last week likely pushed to another record, with trade going into Friday averaging $258.32, well above the prior week’s average of $255.02. Choice beef rose $1.45 to $388.39 Friday, with movement firm at 120 loads.
HOGS: Lean hogs are expected to open with a mostly weaker tone following Friday’s technical breakdown. June futures pushed to fresh lows Friday, ending the consolidation that took place most of the week. Followthrough selling is possible today, especially considering the cash market continues to trend lower. The CME lean hog index is down another 23 cents to $90.79 as of May 7. Pork cutout meanwhile rose $1.96 to $97.56 Friday.