GRAIN CALLS
Corn: 3 to 5 cents lower.
Soybeans: Steady to 2 cents higher.
Wheat: 1 to 3 cents higher.
GENERAL COMMENTS: Corn hit a contract low overnight while soybeans and wheat saw modest corrective buying. While strength has been seen in the overnight sessions over the course of the week, sellers have been active during the day. A break of that trend today is key. Front-month crude oil futures are modestly lower this morning while the U.S. dollar index is around 115 points higher.
USDA reported daily export sales of 190,000 MT of soymeal for delivery to the Philippines during the 2025-26 marketing year.
The U.S. economy added 172,000 jobs in May, well above forecasts of 85,000 but below a 179,000 job gain in April. Major upward revisions were seen in prior months, with employment in March and April revised up by a combined 93,000 jobs. The labor market has strengthened notably in the first five months of the year, further indicating a challenging environment for the new Fed Chairman Kevin Warsh, who was previously expected to ease interest rates. Interest rate futures are now fully pricing in a quarter-point hike by year end.
USDA Secretary Brooke Rollins on Thursday afternoon said her agency is working to contain New World screwworm after a case was detected in Texas and which could impact the U.S. meat industry and the domestic cattle herd. The agency is implementing quarantines, movement controls and surveillance in a zone around the detection site to prevent a bigger outbreak, which depends on fencing in the screwworm fly. The parasite was confirmed on Wednesday in a three-week-old calf in South Texas. The agency is implementing quarantines, movement controls and surveillance in a 12-mile zone around the detection site in Zavala County. Rollins said there were no other infested animals on the ranch where the case was confirmed and that there is no evidence of recent movement of animals onto or off of the premises. “This fly typically moves great distances because humans move animals, not because the fly flies to new areas,” Rollins said on the late-Wednesday call.
The U.S. and Iran have made little progress in talks over an interim peace deal, with clashes continuing in Lebanon. Iran insists on a ceasefire in Lebanon before accepting a deal with the U.S. to extend their truce and reopen the Strait of Hormuz. President Trump said negotiations are in the “final” stages, while Iran’s Foreign Minister Abbas Araghchi said there had been “no tangible progress” in the talks. Skirmishes continued overnight between Hezbollah and Israel in southern Lebanon. However, Hezbollah’s attacks on northern Israel have eased, while Israel has held off striking Beirut after threatening to do so earlier this week.
CORN: July corn futures hit a fresh contract low overnight. Support lies at $4.20 then $4.15 on persistent selling. Bulls are looking to overcome resistance at the psychological $4.25 mark on a bounce.
SOYBEANS: July soybean futures consolidated overnight in the lower end of yesterday’s range. Support comes in at $11.25 on resurgent selling, which is reinforced by support at $11.20 1/2. Resistance stands at $11.45 3/4 on a bounce.
WHEAT: July SRW wheat bounced overnight. Bulls are looking to tackle resistance at $5.94 1/4 on continued strength. Support comes in at the overnight low of $5.78 1/4 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open higher in a continuation of yesterday’s strength. The confirmed NWS case proved to be a “sell the rumor, buy the fact” event with live cattle and feeder cattle futures surging higher Thursday. The threat to the cattle herd sent traders back to the long side of the market following long liquidation earlier this week. Cash cattle trade picked up mid-week, averaging $256.02 thus far, modestly below last week’s average. Choice beef slid $3.20 to $392.66 Thursday, though movement climbed to 128 loads.
HOGS: Hog futures are expected to open with a mostly firmer tone. The CME lean hog index continues to chip higher, rising another 26 cents to $92.51 as of June 3, but traders are hesitant to believe a low is in place. Technical resistance persists over the market at $102.10, the 20-day moving average, which capped the upside the last two weeks. Pork cutout slid 38 cents to $98.13 Thursday, led by losses in butts.