GRAIN CALLS
Corn: 3 to 5 cents higher.
Soybeans: 3 to 5 cents higher.
Wheat: 9 to 14 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat extended to fresh for-the-move highs in overnight trade. Bulls remain in full control of the technical advantage as the market prices in what lower production figures in corn could mean. Robust demand for soybeans continues to hold up as well despite relatively higher prices. Front-month crude oil futures slid to fresh for-the-move lows overnight while the U.S. dollar index is up around 155 points.
USDA reported daily sales of 330,000 MT of soybeans for delivery to China during the 2026-27 marketing year.
The U.S. personal consumption expenditures (PCE) index rose 0.2% month-over-month in July, above market expectations of a 0.1% increase and well above a 0.1% decline in June. Services inflation led the figure higher, rising 0.3%. On an annual basis, PCE inflation rose 3.7%, unchanged from June but above expectations. Core PCE, the Fed’s preferred inflation gauge, rose 0.2% month-over-month as expected, following a 0.1% increase in June. Year-over-year, core PCE held steady at 3.3%, matching expectations. Inflation remains well above the Federal Reserve’s target as volatile energy prices continue to whipsaw the figure. Bond traders are pricing in higher rates and inflation for longer, much to the dismay of the Trump administration.
The American Soybean Association on Tuesday raised the alarm over reports the U.S. government may issue far more small refinery waivers than expected for the 2025 Renewable Fuel Standard (RFS) year. Under a revised methodology, these refinery exemptions could reportedly cover more than 1.8 billion biofuel credits (RINs)—nearly double what the EPA originally planned for in its latest target rules. The ASA said such a large increase in exemptions would slash demand for biomass-based diesel by around 500 million gallons, cost farmers approximately $1 billion in lost revenue and put refiner interests ahead of farmers. “At a time when soybean farmers are already struggling to support our farms, we cannot afford for the rug to be pulled out from under one of our most important sources of domestic demand,” said ASA Vice President Dave Walton, an Iowa soybean farmer.
Beijing warned the U.S. on Tuesday that it would retaliate if the Trump administration includes Chinese companies in any significant expansion of new secondary sanctions related to Iran. Measures announced Monday by U.S. Treasury Secretary Scott Bessent targeted Hong Kong- and mainland-based companies but stopped short of listing major Chinese financial institutions, the Financial Times noted. An increase in U.S. sanctions on China, which buys around 90% of Iranian crude, could upend a U.S.-China trade truce ahead of Chinese leader Xi Jinping’s scheduled U.S. visit next month.
CORN: December corn continues to march higher. The overnight high of $5.30 marks initial resistance, with reinforcement from $5.35. Support lies at the psychological $5.25 mark then yesterday’s low of $5.12 1/2.
SOYBEANS: November soybeans tagged a fresh high overnight. Resistance comes in at the psychological $12.50 mark then the July high of $12.56 1/2 on an extended push higher. Support lies at the 10-day moving average at $12.24, which capped the pullback early in the week.
WHEAT: December SRW wheat broke to fresh for-the-move highs. Key resistance stands at the July high of $7.28 1/4, with psychological resistance at $7.25 on the way. Support stands at the psychological $7.00 mark with reinforcement from the 10-day moving average at $6.95 1/4.
LIVESTOCK CALLS
CATTLE: Lower.
HOGS: Choppy/lower.
CATTLE: Live and feeder cattle futures continue to face headwinds from a lower cash cattle market. Trade initiated at $218.00, well below last week’s average of $225.01. Lower cash paired with yesterday’s technical breakdown in fats likely points to sustained selling pressure in cattle futures. Choice boxed beef meanwhile is showing some signs of strength, rising another $2.84 to $388.53 Tuesday.
HOGS: Lean hog futures are trading near recent lows. Further selling is possible given the weakness in the cash market, but steep discounts to the cash market could limit further selling pressure. The CME lean hog index is down another 21 cents to $92.65 as of August 24, extending the seasonal pullback. Pork cutout meanwhile fell $2.26 to $97.67, led by losses in bellies, though all cuts except ribs posted losses on the day.