GRAIN CALLS
Corn: 7 to 9 cents higher.
Soybeans: 18 to 22 cents higher.
Wheat: 1 to 4 cents higher.
GENERAL COMMENTS: Corn and soybeans led strength overnight, gapping higher and pushing to fresh highs. Wheat saw positive price action but far more subdued. Front-month crude oil futures saw some profit-taking overnight while the U.S. dollar index is up around 125 points.
USDA reported daily sales of 264,000 MT of soybeans for delivery to China, 110,000 of soybeans for delivery to unknown destinations and 100,000 MT of s0ybeans for delivery to Colombia — each during the 2026-27 marketing year.
The U.S. conducted a ninth straight day of airstrikes on Iran, trying to force that nation to stop shipping attacks and reopen the Strait of Hormuz. Shipping through the Strait has been drastically reduced during the recent military escalation. “The American military bombed military targets and communications networks in a three-hour operation ending around 5:30 a.m. Iranian time on Monday. Iran continued to attack U.S. bases in the likes of Kuwait, Jordan, Bahrain and Iraq. The standoff shows no sign of easing, with Iran refusing to relent over Hormuz and insisting it has a right to manage traffic through the waterway,” said a Bloomberg report. “The diplomatic apparatus has been active in recent days, and ideas from some mediators have been conveyed to the Islamic Republic of Iran,” an Iranian foreign ministry spokesman said to reporters. The tit-for-tat attacks are getting deadlier. The U.S. military announced the death of a service member in northern Iraq on Saturday during a “controlled detonation” of a downed Iranian drone. That was a day after two other U.S. soldiers were killed in an Iranian attack on Jordan, with another service member still missing from the same strike.
U.S. gasoline prices climbed back over the $4-a-gallon mark at the pump as the conflict in the Middle East has escalated, “threatening to exacerbate a global crunch for transportation fuels and stoke inflation,” said Bloomberg. Regular unleaded gasoline averaged $4.003 a gallon, according to daily prices posted by the American Automobile Association, breaking through the $4 dollar threshold after hovering below for a month. Gas prices remained stubbornly high even as crude oil prices fell precipitously in June, dropping as low as $3.79 a gallon before trending back up in early July.
A diesel fuel squeeze is happening across Europe due to major supply challenges, with record refining margins and slumping stockpiles, according to Bloomberg. “The market for diesel is tightening due to factors including disruptions in the Strait of Hormuz, Ukrainian attacks against Russian refineries, and a diesel-export ban imposed by Moscow. Morgan Stanley analysts say the tightness is already reflected in prices, advising investors against betting on more gains from current levels, saying the market is ‘full priced — don’t chase,’ ” said the report. Read more about the global supply crunch driving up diesel prices: Diesel prices are surging on tight supplies as input squeeze intensifies
CORN: December corn futures gapped higher and saw continued gains overnight. The psychological $4.75 mark gapped most gains, while resistance comes in at $4.80 on persistent strength. Support comes in at $4.69 1/2 on a push lower.
SOYBEANS: November soybean futures surged higher overnight. Resistance stands at the contract high of $12.41 made in December 2022, with additional resistance at $12.25 on the way. Support comes in at $12.14 then $12.07 3/4 on a turn lower.
WHEAT: September wheat futures continue to chip higher. Resistance stands at last week’s high of $6.98 1/4, which is quickly reinforced by psychological $7.00 resistance. Support comes in at $6.74 3/4 then the 10-day moving average at $6.54 1/4.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Live cattle and feeder futures are expected to open with a mostly firmer tone on corrective buying. Fats have closed lower for 15 consecutive sessions and are due for a corrective bounce. Bears remain in full control of the technical advantage and additional selling can’t be ruled out. Cash trade will show another sharp week-over-week decline once officially published later today. Choice beef slid another $1.57 to $366.81 Friday, extending the recent slide.
HOGS: Lean hog futures are expected to open with a mostly weaker tone on corrective selling. Technical resistance capped most gains on Friday with those levels likely to provide some headwinds today. Still, the cash market remains supportive and could push prices higher. The CME lean hog index is up another 55 cents to $95.65 as of July 16, extending the recent string of gains. Pork cutout surged another $1.99 to $104.41 Friday, led by gains in bellies and butts.