GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 2 to 4 cents lower.
Wheat: SRW 3 to 5 cents lower; HRW steady to 2 cents lower; HRS steady to 2 cents higher.
GENERAL COMMENTS: Wheat led weakness overnight while corn saw relative strength, but struggled to garner much bullish momentum. Wednesday’s have seen a bounce in recent weeks, key will be to see if that trend continues. Outside markets are mixed this morning as front-month crude oil futures are trading modestly higher, continuing the recent bounce while the U.S. dollar index is solidly higher, up around 400 points and continuing to breakout.
U.S. GDP grew an annualized 3% in Q2 2025, rebounding from a 0.5% contraction in Q1, and beating expectations of 2.4%. The expansion primarily reflected a 30.3% plunge in imports, following a 37.9% surge in Q1, when businesses and consumers rushed to stockpile goods ahead of expected price increases following a series of tariff announcements. Consumer spending rose at a faster pace led by goods, likely reflecting consumers purchasing imported goods from Q1. Exports were down 1.8%, the biggest decline since Q2 2023, compared to a 0.4% rise in Q1
The National Weather Service reports the Midwest will finally cool down to end the week, with daily high temperatures in the 70s over much of the region. However, Iowa and Illinois will see more strong to severe storms today, after Iowa was hit with heavy rain and storms overnight. Potentially damaging winds may accompany the heavy rain that is expected. Amounts of 1-3 inches are likely in Iowa, with smaller pockets of 3-5 inches or more possible, producing flash flood watches.
China’s top leadership says it is determined to reduce excess competition in the Chinese economy, with President Xi Jinping endorsing a campaign targeting one major cause of deflation and tensions with global trade partners. The Communist party’s decision-making politburo vowed to ramp up its management of overcapacity in key industries, according to a report Wednesday by the official Xinhua News Agency. Local government practices in attracting investment will also be regulated, it added. Xinhua also published a separate report calling for Xi to “break involution,” a phrase referring to a destructive state of intense competition sparked by excess capacity that forces people to overwork despite diminishing returns. U.S.-China trade talks in Stockholm, Sweden ended Tuesday without an extension of the current truce. President Trump must now approve any proposed plan. Otherwise, tariffs will revert to April levels if no deal is reached by the August 12 deadline.
CORN: December corn futures consolidated overnight. Bulls are looking to maintain prices above the contract low of $4.07 1/2 on continued selling pressure. Resistance stands at $4.14 then the 10-day moving average at $4.16 1/2 on a bounce.
SOYBEANS: November soybean futures traded within Tuesday’s range overnight. Support comes in at $10.04 1/2 then the psychological $10.00 mark on persistent selling. Resistance stands at $10.10 then $10.16 1/4, the 10-day moving average.
WHEAT: December SRW futures favored the downside overnight. Support comes in at the May 13 low of $5.43 3/4 on persistent selling pressure. Initial resistance stands at $5.50 with additional strength looking to topple the 10-day moving average at $5.57 1/2.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Lower.
CATTLE: Live cattle and feeders are expected to open higher in a continuation of recent strength. Technical overbought conditions could limit gains after the open, but continued strength in the cash cattle market and steep discounts to cash are likely to limit any selling pressure. Cash trade has yet to initiate this week but feedlots continue to hold the upper hand in negotiations. Packer margins continue to erode amid high cattle and weakening beef prices. Choice cutout fell $3.54 to $364.19 Tuesday while Select sunk $4.37 to $342.48.
HOGS: Lean hog futures are expected to open lower in a continuation of yesterday’s selling pressure. Strength in the cash market has waned in recent days, leading to choppy price action. The CME lean hog index is up another 13 cents to $110.45 as of July 28. Pork cutout saw sharp losses on Tuesday, falling $2.44 to $115.85 as all cuts except hams fell on the day. Bellies led the way lower, sinking $7.95.