GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 6 to 8 cents higher.
Wheat: 2 to 4 cents lower.
GENERAL COMMENTS: Soybeans led strength overnight while wheat led weakness, falling to fresh contract lows. Corn was caught in the middle, seeing strength early in the overnight session but falling to session lows into the break. Outside markets were rather unfazed by CPI rising more than expected this morning. Front-month crude oil futures are trading modestly lower while the U.S. dollar index is around 100 points higher.
Annual inflation, as measured by the consumer price index (CPI) picked up in August, rising to 2.9%. That marks the highest rate since January and is up from 2.7% in July. Price increases were led by increases in food, used vehicles and new vehicles. CPI rose 0.4% month-over-month, higher than 0.2% in July and above forecasts of 0.3%. Inflation ticking higher after a higher-than-expected increase in producer prices in July was somewhat expected. Core CPI, which does not include food and energy prices, steadied at 3.1%, the same as July and February’s peak. On the month, Core CPI rose 0.3%.
China’s government has summoned its biggest hog producers to discuss measures to cut pork production, in its latest move to tackle oversupply and bolster pork prices, reports Bloomberg. Some 25 farming operations have been asked to gather in Beijing on Sept. 16 to share their plans on output control and highlight measures taken so far, according to a notice issued to the firms by China’s agriculture ministry and viewed by Bloomberg. Attendees must submit details of their targets for cutting sow numbers by January and their production plans for the year ahead, the ministry’s animal husbandry bureau said. The meeting, first reported by local media, will include the government’s top economic planning agency, the National Development and Reform Commission. China, the world’s largest pork producer, has urged farmers to cut the nation’s breeding herd this year, to deal with a supply glut and deflationary pressures in the economy. Wholesale prices of pork have dropped almost 25% the past year as consumption has weakened due to China’s economic slowdown.
Export sales for the week ended Sept. 4:
Corn: Net sales of 539,900 MT for 2025-26 were led by sales to Mexico. A total of 1.17 MMT in sales were carried over from the 2024-25 marketing year. Sales were well below the expected range of 900,000 MT to 2.4 MMT for 2025-26.
Soybeans: Net sales of 541,100 MT for 2025-26 were primarily for unknown destinations. A total of 767,000 MT in sales were carried over from the 2024-25 marketing year. Traders expected sales of 400,000 to 1.6 MMT for 2025-26.
Wheat: Net sales of 305,400 MT for 2025-26, down 2% from the previous week and 43% from the four-week average. Sales were in the lower end of pre-report expectations from 300,000 to 650,000 MT.
CORN: December corn struggled to maintain early overnight bullish momentum. Prices are right on key support at $4.17. Additional selling finds tentative support at $4.15 1/2. Resistance comes in at $4.20 on a push higher.
SOYBEANS: November soybeans bounced overnight. Bulls are looking to topple resistance at $10.33 1/2 on persistent strength. Strong support stands at $10.25 on a return of selling pressure.
WHEAT: December SRW wheat fell to fresh contract lows overnight. Support comes in at $5.10 on persistent selling pressure. Resistance stands at $5.20 on a reversal higher.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open with a mostly firmer tone in a continuation of yesterday’s strength. Cash cattle trade was slow to start this week but cash trade initiated at lower prices mid-week, averaging $238.62 thus far. Even with the week-over-week decline, that remains well above futures prices. Wholesale beef continues to work lower with Choice cutout falling $2.03 on Wednesday to $405.64 while Select sunk $3.28 to $383.68. USDA reported net beef sales of 12,100 MT for 2025, down 27% from the previous week but up 8% from the four-week average.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of recent strength, though technical selling pressure could limit gains after the open. October lean hogs hit a contract high on Wednesday before seeing some profit-taking. The CME lean hog index erased the past couple days of losses and is up 6 cents to $105.93 as of Sept. 9. Pork cutout rose 66 cents to $114.77 Wednesday, led by gains in bellies. USDA reported net pork sales of 17,300 MT for 2025, down 27% from the previous week and 35% from the four-week average.