GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 1 cent lower to 1 cent higher.
Wheat: Steady to 2 cents lower.
GENERAL COMMENTS: Wheat and soybeans continue to trade in their recent ranges but corn hit a fresh contract low overnight. Prices are near inflection points for each market. Front-month crude oil futures are lower this morning after Trump’s comments yesterday that a U.S.-Iran deal is close. The U.S. dollar index is trading near steady and back below the $100-level.
The USDA Animal and Plant Health and Inspection Service (APHIS) on its NWS website now reports nine total New World screwworm detected cases, in Texas and New Mexico. Meantime, Oklahoma officials are working with USDA to monitor the spread of NWS. “The Oklahoma Department of Agriculture, Food and Forestry (ODAFF) is working with the USDA to monitor the spread of NWS. No confirmed cases have been found in Oklahoma, but ODAFF is taking measures to avoid the spread just in case,” said the agency and as reported by Oklahoma News 4. Any species that comes from a NWS infested zone will need to meet the movement requirements for that state as well as obtain a permit from the Oklahoma State Veterinarian’s office, said the report.
President Trump pulled back threatened military strikes against Iran in a stark reversal that came just hours after he vowed to hit the Islamic Republic “VERY HARD” and threatened to seize its oil infrastructure. Trump announced on social media the attacks were off, claiming again that a deal was close — without any confirmation from Iran, and described it as “a very strong memorandum of understanding that is a little conceptual,” which would restart shipping in the Strait of Hormuz. Iran’s semi-official news agency Fars said earlier Thursday that officials had not yet approved the text of any agreement with the U.S., citing an unnamed source, and talks remain stuck over several key issues, including the release of frozen Iranian funds and Iran’s demand for a ceasefire in Lebanon.
CORN: July corn futures hit a fresh contract low overnight. That marks initial support at $4.08 1/2. Resistance comes in at $4.15 on corrective buying.
SOYBEANS: July soybean futures are trading near recent lows. Bulls are eyeing support at $11.08 1/4 then the psychological $11.00 on a break lower. Resistance comes in at yesterday’s high of $11.25 on a bounce.
WHEAT: July SRW wheat continue to slide from this week’s highs. Prices continue to trade in a bear-flag on the daily bar chart. Support comes in at $5.80 then $5.74 3/4 on persistent selling. Resistance stands at $5.93 on a bounce.
LIVESTOCK CALLS
CATTLE: Choppy/lower.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly weaker tone amid technical selling pressure. Bulls have struggled to overcome downtrend resistance which looms just above nearby futures. Cash trade so far this week has not provided much of a boost either, with light trade taking place at $254.15. Choice beef fell 8 cents to $393.21 Thursday, continuing sideways in the recent range.
HOGS: Hog futures are expected to open with a mostly weaker tone amid weakness in cash fundamentals. The CME lean hog index is down 2 cents to $92.90 as of June 10, ending the string of recent gains. Pork cutout continues to give up early week gains as well, falling $1.49 to $94.47, driven by losses in ribs. Additional corrective buying is possible given the oversold nature of the market.