GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 1 to 3 cents lower.
Wheat: Steady to 2 cents higher.
GENERAL COMMENTS: Corn futures continue to lead weakness, falling below technical support in overnight trade, while wheat and soybeans show relative strength. Prices sliding before Friday’s report is somewhat concerning, especially if December corn closes below 10-day moving average support. Front-month crude oil futures are higher and near for-the-move highs this morning while the U.S dollar index is around 115 points lower.
USDA reported daily sales of 182,880 MT of corn for delivery to Mexico, 340,000 MT of soybeans for delivery to China and 100,000 MT of soybeans for delivery to unknown destinations — each for delivery during the 2026-27 marketing year.
The U.S. attacked more Iranian oil tankers overnight, with the worsening tensions over control of the Strait of Hormuz sending Brent crude beyond $100 a barrel. “The American military said it destroyed five vessels in response to Iran’s Islamic Revolutionary Guard Corps targeting one of its warships,” said a Bloomberg report. The American vessel “successfully evaded the attempted Iranian attacks,” Central Command, which oversees U.S. forces in the Middle East, said. “No American personnel were harmed.” Centcom said it hit four tankers in the Gulf of Oman and one near Kharg Island, which sits within the Persian Gulf and is Iran’s main oil-export terminal. “American forces directed the crews to abandon ship before the vessels were struck and rendered inoperable,” Centcom said, without clarifying if the ships were carrying oil or were empty. The U.S. has destroyed at least eight oil tankers since Saturday.
Russia’s biggest Black Sea port of Novorossiysk and the surrounding areas were attacked by drones overnight, “damaging infrastructure and threatening to further squeeze commodity flows from the region,” said a Bloomberg report. “Last night, our military repelled a massive enemy drone attack on the region,” Novorossiysk city mayor Andrey Kravchenko said in a Telegram statement. “The main strike targeted Novorossiysk,” with civil infrastructure damaged, he said, providing no information on whether any port facilities were affected. Novorossiysk, which hosts grain, crude and oil product terminals, is on fire, according to NASA’s Fire Information for Resource Management System. The satellite imagery taken today shows relatively fresh heat anomalies — likely indicating fires — in the area where some grain facilities and the fuel oil terminal are located. The Black Sea terminal of the Caspian Pipeline Consortium, the main outlet for Kazakshtan’s crude-oil exports, was also targeted by drones on Wednesday morning, according to a person familiar with the matter, said the Bloomberg report.
The U.S. escalated its trade war with Canada following Ottawa’s tariff retaliation, Bloomberg reports, “moving to block imports of some products while slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to government contractors.” The measures announced by the Trump administration in a series of proclamations on Tuesday include bans on whey proteins, certain rye whiskies and other liquors, malt beer and certain grape wines, non-alcoholic beer and motorcycles. President Trump had earlier hinted at the move in response to bans on U.S. alcohol products by several Canadian provinces. Trump also expanded the Section 338 tariffs — a power dating back to a Depression-era Smoot-Hawley tariff law that was first tested in August — by extending them to certain cheeses, animal hides, motorboats, certain aluminum and paper products, golf carts and mattresses. The import bans for some Canadian dairy products and alcohol will take effect in three weeks, a senior administration official told reporters.
CORN: December corn is trading near last week’s low. That marks support at $5.26 1/2. Bulls are eyeing resistance at $5.31 1/2 then $5.40 on resurgent strength.
SOYBEANS: November soybeans are trading in a tight range. Key resistance persists at $13.20, which has capped the upside over the past week. Support stands at the psychological $13.00 mark then $12.95 1/4, the 10-day moving average.
WHEAT: December SRW wheat continue to consolidate near the 10-day moving average at $7.46 3/4. Support stands at the 20-day moving average at $7.30 while resistance stands at $7.60 on resurgent strength.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Higher.
CATTLE: Live and feeder cattle futures are expected to open higher in a continuation of yesterday’s strength. Technical resistance could limit further strength as prices remain in a downtrend on the daily bar chart. Cash market weakness continues to undercut futures, as last week’s cash average fell another 19 cents to $219.06. Late week strength limited a bigger drop, but persistent weakness in the cash has weighed heavily on futures. Choice beef rose $1.40 to $377.57 Tuesday, ending the string of recent losses.
HOGS: Lean hog futures surged higher Tuesday, negating Friday’s technical breakdown. Strength in futures is despite persistent weakness in the cash market, as the CME lean hog index is down another 89 cents to $89.65. October futures are just modestly below the index, indicating traders fell the seasonal decline may be less than normal. Pork cutout fell $1.04 to $91.82 Tuesday, led by weakness in bellies.