GRAIN CALLS
Corn: 12 to 14 cents lower.
Soybeans: 32 to 34 cents lower.
Wheat: 1 to 3 cents lower.
GENERAL COMMENTS: Corn and soybeans saw sharp losses overnight, continuing the string of big daily price swings. Uptrends are still in place on the daily bar charts, but we will keep an eye on support levels for the summer rallies to remain intact. Front-month crude oil futures are sharply lower this morning while the U.S. dollar index is trading around 80 points lower.
USDA reported daily sales of 132,000 MT of soybeans for delivery to China and 126,000 MT of soybeans for delivery to unknown destinations — each for delivery during the 2026-27 marketing year.
The U.S. and Iran held off attacks on each other for a third straight night, helping lift global stock and bond markets and push down oil prices. President Trump, who last week threatened to step up attacks in Iran, is giving diplomacy “some space,” Mike Waltz, Washington’s ambassador to the United Nations, said on Sunday, Bloomberg reported. The New York Times reported Trump and his advisers decided to hold off on plans to escalate U.S. strikes, partly because of concerns about diminishing stockpiles of air defenses such as Patriot interceptors. Waltz, speaking to NBC, said American forces had all the weaponry they needed. Trump has consistently said “he prefers a diplomatic solution, but he continues to retain all options if Iran continues terrorist activities in the Strait of Hormuz or against allies,” a White House spokesman said in a statement. Still, tensions between the warring sides remain high and Iran has said there’s no change to the status of the Strait of Hormuz, meaning it’s likely to continue targeting commercial ships that don’t receive its permission before transiting. Traffic through the vital waterway — through which one fifth of the world’s oil and liquefied natural gas supplies flowed before the conflict — remains negligible.
USDA late Friday announced “a coordinated, phased reopening of southern cattle ports, contingent on Mexico’s adherence to the Joint Action Plan. Beginning August 24, 2026, USDA will open the Douglas, AZ port of entry to cattle trade, while simultaneously initiating the operational steps necessary for subsequent openings at the Santa Teresa, NM, and Columbus, NM, ports. Every animal entering the United States through these ports will undergo a full USDA inspection to ensure it is free of any signs of New World screwworm (NWS),” said a USDA press release Friday evening. “Thanks to the work across the federal government as well as state, local, and industry partners, it is now safe to reopen the Douglas, Arizona, port in 30 days to resume the hundreds-year-old movement of cattle,” said USDA Secretary Brooke Rollins. The reopening timeline will remain flexible and may be adjusted based on Mexico’s progress in meeting Action Plan milestones and addressing critical issues, said the press release. Read: U.S. plans phased reopening of southern border to Mexican cattle imports.
China’s Ministry of Commerce on Monday voiced firm opposition to the U.S. decision late last week to initiate a Section 301 investigation and impose unilateral tariffs on China as part of a crackdown on forced labor, calling the move a typical act of unilateralism and protectionism and urging Washington to correct its “wrong practice” and remove relevant unilateral tariff measures, Global Times, a state-run tabloid, reported. “China is willing to continue dialogue and consultation with the US on the basis of mutual respect, equality, and mutual benefit, in order to address each other’s concerns,” a commerce ministry spokesperson said.
CORN: December corn futures are facing heavy selling pressure. Support comes in at $4.70 then the 20-day moving average, a key line in the sand, and $4.67 1/4. Resistance comes in at $4.80 then $4.85 on a reversal higher.
SOYBEANS: November soybean futures saw sharp losses overnight. Support comes in at $12.07 1/4 on persistent selling pressure. Bulls are looking to reclaim the 10-day moving average at $12.21 1/2 then $12.26 1/4 on a bounce.
WHEAT: September SRW wheat futures fell under pressure amid positive talks around ships moving through the Black Sea. Still, the 10-day moving average serves up strong support at $6.72 3/4, with reinforcement from Friday’s low of $6.59 1/2. Resistance comes in at $6.85 then $7.00 on a reversal higher.
LIVESTOCK CALLS
CATTLE: Lower.
HOGS: Choppy/higher.
CATTLE: Live cattle and feeder futures are expected to open lower following USDA’s plan to have a phased re-opening of the southern border. Friday’s slew of cattle data indicated a fundamentally supportive market, as placements and marketings both slid from year-ago. The data indicated herd rebuilding has begun, but at a slow rate. Read more on the reports here. Cash cattle trade is expected to show another sharp decline last week, while choice beef fell $1.63 to $361.21 Friday.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of recent strength, though some profit-taking is possible given prices are in the upper end of the ongoing uptrend. The cash hog market remains supportive, as the CME lean hog index is up another 43 cents to $97.91 as of July 23. Pork cutout rose another 15 cents to $104.63 Friday, led by gains in picnics.