GRAIN CALLS
Corn: 5 to 7 cents higher.
Soybeans: 9 to 11 cents higher.
Wheat: 8 to 11 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each saw an impressive push higher this morning, pushing prices into the upper end of yesterday’s range. Bulls are looking to followthrough on yesterday’s key reversal. Price action in December corn is key today. Front-month crude oil futures are modestly lower this morning while the U.S. dollar index is around 340 points higher.
U.S. negotiators Steve Witkoff and Jared Kushner held positive discussions with their Iranian counterparts in Qatar and progress is being made on technical talks with Iran, Bloomberg reported, citing a senior administration official, as the countries seek to turn an interim peace deal into a permanent end to the war. Talks between U.S. and Iranian officials via mediators are continuing Wednesday, AFP reported. Qatari officials had downplayed expectations for the new round of negotiations, saying that Witkoff and Kushner would not meet directly with their Iranian counterparts. The senior administration official, who spoke on condition of anonymity to provide an update on the discussions, said progress continued to be made in the separate technical talks, which are being carried out by lower-level representatives. The Wall Street Journal, citing unnamed U.S. officials, reported Tuesday evening that Trump had decided against resuming a broad military campaign, and told his staff that he didn’t mind if the negotiations extended beyond the Aug. 18 deadline.
Kevin Warsh will make his first public appearance abroad as head of the Federal Reserve alongside peers from Europe and the U.K. in Sintra, Portugal, today. After his pledge last month to deliver price stability sent the U.S. dollar and shorter-dated Treasury yields higher, traders will be looking for further clues on the rate path for the year ahead. “Investors are increasingly shifting focus to growing price pressures in an economy that’s firing strongly, with expectations building for a solid payrolls report on Thursday,” said a Bloomberg report. “Given the absence of forward guidance from the Fed now, there is going to be intense focus on any comments” from Warsh, wrote Chris Turner, a foreign-exchange strategist at ING Bank NV. “A focus on price stability can keep the dollar bid.” “The pricing for a hike has moved up, but from where we are now, to get to a hike in July feels like a bit of a jump,” said another analyst.
CORN: December corn futures are trading near yesterday’s highs. Stiff resistance stands at $4.42 1/2, which is reinforced by resistance at $4.45. Bulls are looking to hold support at the key $4.40 mark on a closing basis today. Additional selling finds support at $4.36.
SOYBEANS: November soybean futures are trading in the upper end of yesterday’s range. Bulls are looking to close prices above 40-day moving average resistance at $11.55 1/2. Support stands at $11.46 1/2 on a turn lower.
WHEAT: September SRW wheat continue to build higher from yesterday’s low. Resistance stands at the psychological $6.00 mark then $6.03 3/4. Support stands at $5.90 then $5.85 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly firmer tone on corrective buying. Cash trade has yet to initiate this week, surprising given the holiday at the end of the week. Futures continue to trade at sharp discounts to the cash market, which could limit further selling pressure in futures. Choice beef rose $1.72 to $393.16 Tuesday, bounding from recent losses.
HOGS: Hog futures are expected to open with a mostly lower tone as a weaker cash market weighs on futures. August lean hogs have seen an impressive rally the past couple days, but are trading in the upper end of the recent uptrend and found stiff resistance at the 40-day moving average. The CME lean hog index is down around 17 cents at $91.24 as of June 29, extending the recent slide. Pork cutout slid $2.17 to $95.49 Tuesday, led by losses in bellies and loins.