GRAIN CALLS
Corn: 6 to 8 cents higher.
Soybeans: 8 to 10 cents higher.
Wheat: Winter wheat 18 to 21 cents higher; HRS 11 to 13 cents higher.
GENERAL COMMENTS: Buyers returned to the grain and oilseed complex overnight, pushing corn to fresh highs. Soybeans and wheat are near recent highs as well. Front-month crude oil futures continue to surge higher, offering some support to grains. The U.S. dollar index is down around 50 points this morning.
The U.S. widened the scope of its airstrikes on Iran overnight, as President Trump and officials in Tehran signaled a renewal of peace talks is unlikely in the near-term. “American forces struck a military site near the north-western city of Tabriz, according to Iranian media, the first time the area is thought to have been hit since hostilities between the warring sides worsened two weeks ago,” said a Bloomberg report. “The Iranian government activated air defenses early on Wednesday in Tehran, the capital, local media reported, adding that the U.S. struck Abdanan and Chovar in the west, near the border with Iraq. That was the 11th straight day of attacks on Iran, which again fired on U.S. bases in Kuwait, Bahrain and Jordan. “There are no negotiations — it’s only possible for there to be an exchange of messages,” a spokesman for Iran said. Brent crude oil futures jumped above $95 a barrel for the first time in almost six weeks, while Nymex crude oil futures are trading around $88 a barrel, also a six-week high.
Russia has restricted its shipping access to certain Sea of Azov and Kavkaz ports while continuing its own strikes on Ukrainian port infrastructure, as Ukraine launched drone attacks on warehouses operated by Wildberries, reports TradingEconomics.com. “The escalating tensions heightened concerns over grain shipments through the Black Sea, a critical export corridor for two of the world’s largest wheat exporters,” said the report.
Corn and soybean basis levels have generally strengthened across the eastern Corn Belt since mid-June but are unlikely to defy seasonal weakness as summer continues, according to an analysis by Josh Strine of Purdue University’s Center for Commercial Agriculture. “As we move through the second half of summer, seasonal trends suggest the strongest basis is behind us,” Strine wrote. “Historical trends for both corn and soybeans indicate a weekly decline in basis across the region over the next month.”
CORN: December corn futures surged to fresh highs overnight. Resistance comes in at $4.85 then $4.90 on continued strength. Tentative support lies at $4.80 while additional selling finds support at $4.76.
SOYBEANS: November soybean futures are trading near recent highs. Resistance stands at $12.32 then the contract high of $12.41 on persistent buying. Support lies at $12.17 then the 10-day moving average at $12.06 on a reversal lower.
WHEAT: September SRW wheat futures surged higher overnight. Bulls next objective is closing prices above the $7.00 mark on continued strength. Support comes in at $6.87 1/2 then $6.80 on a turn lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live cattle and feeder futures are expected to open with a mostly firmer tone in a continuation of recent strength. Bulls struggled to maintain early gains on Tuesday but did manage to close prices higher for the second straight session. Bears remain in full control of the technical advantage. Cash trade is likely to be slow most of this week ahead of Friday’s reports. Choice beef slid $3.19 to $366.91 Tuesday.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of recent strength. Bulls remain in full control of the technical advantage. Gains in the cash market remain support of higher futures. The CME lean hog index is up another 48 cents to $96.64 as of July 20. Pork cutout rose $1.72 to $104.82 Tuesday, led by gains in bellies, ribs and hams.