GRAIN CALLS
Corn: 4 cents lower to unchanged
Soybeans: 2 to 6 cents lower
Wheat: Winter wheat unchanged to 4 cents higher, HRS 2 cents lower to 2 cents higher
GENERAL COMMENTS: Corn and soybeans saw corrective price action in the overnight following yesterday’s big up days. Wheat futures were able to notch minor gains, supported by tensions in the Black Sea. Outside markets are mixed this morning, with the U.S. dollar index 10 to 20 points lower and West Texas crude futures currently down around $2.00 a barrel to $81.30.
USDA this morning reported flash sales of 125,000 metric tons of soybeans for delivery to China during the 2026/27 marketing year.
This morning’s U.S. producer price index report will likely show an increase of 0.2%, month-over-month, in July following a 0.3% fall in June. Core producer prices, which exclude the more volatile food and energy components, are forecast to rise by 0.3% in July, accelerating from the 0.2% increase recorded in June. On an annual basis, headline producer inflation is projected to slow to 4.9%, down from 5.5% in June which marked its highest level in four months. Meanwhile, annual core producer inflation is expected to decrease to 4.2% from 4.7%, also reaching its lowest reading since March.
The People’s Bank of China has pledged to roll out “practical and effective” policy support promptly, while avoiding signals of major easing. In its quarterly monetary policy report released Wednesday, the central bank said it will intensify countercyclical adjustments, boost domestic demand and channel more resources toward technological innovation and smaller firms. It vowed to conduct overnight reverse repo operations more frequently to fine-tune short-term rates and urged that loans and bond financing be assessed together rather than focusing solely on credit growth. The central bank noted that capital-heavy sectors like real estate and infrastructure have cooled, while emerging “new productive forces” are more asset-light, reducing traditional loan demand. It also stressed that global monetary recalibration is not a “drastic U-turn,” warning that history shows rapid tightening after massive easing tends to deliver sharper shocks to markets.
“The U.S. military campaign against Iran has so far failed to force the regime to capitulate. The Trump administration is betting once again that suffocating economic pressure will do the job. Facing a shortfall of necessary munitions and wary of continuing an unpopular war, President Trump and his top officials are returning to a familiar playbook with the regime: relying on a steady increase in economic sanctions and a naval blockade to stifle oil exports,” said a Bloomberg report. “Operation Economic Fury, led by Secretary Scott Bessent, is devastating the Iranian economy,” U.S. Ambassador to the United Nations Mike Waltz told Fox News on Aug. 10. He said the country would “absorb the bombings” but that Iranians were more afraid of Bessent than Defense Secretary Pete Hegseth. Trump made a similar comment on Sunday to Axios, saying he is “low-keying it” with Iran. “We are just watching Iran with its huge inflation and the fact they have no money.” Bessent hit a similar theme weeks before on Fox, saying “the government is causing the people to suffer, and we’re going to keep pressing.”
CORN: December corn futures saw mild corrective price action after yesterday’s big up day, as well as unfriendly movement in oil markets. Corn will face first resistance at yesterday’s high of $4.81 1/2, with firmer resistance at the July high of $4.92. Support is seen at the 10- and 40-day moving averages of $4.69 1/4 and $4.66, respectively.
SOYBEANS: November soybean futures saw a mild pullback after yesterday’s gains. Soybeans face initial resistance at the 40-day moving average of $11.84 3/4. Support can be found at the 100-day moving average of $11.68 1/2.
WHEAT: September SRW wheat futures are mildly firmer in overnight trade. Initial resistance stems from the July 30 close of $6.63 1/2. Futures see support at the 40-day moving average of $6.42 3/4.
LIVESTOCK CALLS
CATTLE: Choppy/lower
HOGS: Choppy/lower
CATTLE: Live cattle and feeder futures are expected to open choppy to lower this morning. Technical selling yesterday pushed live and feeder cattle below the 10-day moving average which may invite further pressure. Cash cattle trade has been exceedingly light so far this week limiting support from fundamentals.
HOGS: Lean hog futures are expected to open choppy to lower. Hogs continue to struggle to break out of the price downtrend. Wholesale fundamentals in both pork cutout and cash hogs slipped according to yesterday afternoon’s reports. The most recent CME lean hogs index is down 15 cents to $95.94.