GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 11 to 13 cents lower.
Wheat: 8 to 10 cents lower.
GENERAL COMMENTS: Markets were spooked overnight amid heavy selling in equity futures regarding uncertainty on tariffs. That led to profit-taking in corn and soybeans while wheat continues to face heavy selling pressure. Front-month crude oil futures are modestly higher while the U.S. dollar index is around 800 points higher.
World Weather Inc. Monday reported two shots of cold air will push through the Midwest and eastern Canada’s Prairies this week. Wednesday will be the first round of cooler-than-usual weather in the eastern Prairies, while Friday and Saturday will be cold again over some of the same areas. Portions of the upper U.S. Midwest will see some frost and a few freezes Thursday morning, with another opportunity for frost in the upper Midwest and Great Lakes region Sunday and Monday of next week.
Last Friday’s U.S. appeals court ruling that said most U.S. tariffs are illegal has injected uncertainty into the marketplace to start the U.S. holiday-shortened trading week, and into President Trump’s authority to impose the import duties. The judges ruled 7-4 that sweeping U.S. global tariffs exceeded the authority granted under the 1977 International Emergency Economic Powers Act (IEEPA). The Federal Circuit said Congress never delegated the power to impose tariffs through IEEPA, calling the policy an “unheralded” and “transformative” overreach. The appeals judges let the levies stay in place while the case proceeds, but it threatens to freeze corporate investment decisions until the cost of tariffs are clearer. U.S. stock indexes were lower overnight, along with most global stock markets, while bond yields are on the rise early this week. September is historically the worst-performing month for the U.S. stock market.
President Trump said India offered to cut tariffs on U.S. goods to zero, adding that “it’s getting late” and India should have made the offer “years ago.” Meantime, India’s Commerce Minister Piyush Goyal said both sides continue to engage to reach a trade agreement saying, “We are in dialog with the U.S. for a bilateral trade agreement.” There are no formal talks taking place between the trade negotiators at present but the two nations are keeping informal communication channels open, reported Bloomberg.
CORN: December corn saw some consolidation overnight. Bulls are look to hold 40-day moving average support at $4.13 3/4 on continued selling pressure. Resistance stands at $4.20 1/2 on a bounce.
SOYBEANS: November soybeans saw heavy selling pressure overnight. Support comes in at $10.38 on continued selling pressure. Resistanc stands at $10.44 3/4 then the psychological $10.50 mark on resurgent strength.
WHEAT: December SRW wheat traded lower overnight. Bulls are seeking to hold support at $5.20 on continued selling pressure. Resistance comes in at $5.28 3/4 then $5.32 1/4 on strength.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open higher in a continuation of recent strength. Technicals and fundamentals are both still fully bullish and continue to underpin prices, though volatility in outside markets could spill over into the cattle market today. Robust consumer demand continues to be robust and is supportive of prices, but volatility in outside markets could dent demand, something we will keep a close eye on. Choice cutout rose $1.00 to $415.41 Friday while Select rose $4.16 to $390.00.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of recent strength. Hog futures have shown relative strength recently, partially supported by strength in the cattle market. The CME lean hog index continues to fall under pressure, falling another 20 cents to $106.43 as of Aug. 27. Pork cutout rose $2.83 to $114.32 on Friday, driven by gains in picnics, loins and bellies.