GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: Steady to 2 cents higher.
Wheat: 3 to 5 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each rose on corrective buying overnight. Technical resistance continues to limit the upside in each market. Outside markets are unfavorable this morning as front-month crude oil futures are trading solidly lower while the U.S. dollar index continues to chip higher, currently up around 360 points.
Crude oil futures prices extended their declines as more tankers openly cross the Strait of Hormuz, while the U.S. and Iran have signaled progress toward ending the war. Brent crude futures hovered around $76 a barrel after falling 1.1% in the previous session, and Nymex West Texas Intermediate was below $72. “Vessels are transiting the waterway with their satellite signals switched on, indicating growing confidence among shipowners. The International Maritime Organization also said it had received safety guarantees allowing hundreds of ships to exit the Persian Gulf,” said a Bloomberg report. Washington and Tehran have both flagged early progress in talks to end the war that began in late February, although negotiations are likely to be protracted and claims from the two sides have diverged. In a sign of how much oil has been leaving Hormuz in recent weeks, the International Energy Agency estimates that the United Arab Emirates is exporting oil at nearly 85% of pre-war levels, said the report. Oil prices are down about 40% from their high during the peak of the conflict.
The cost of diesel in the U.S. fell below $5 a gallon for the first time since mid-March, offering some relief for one of the global economy’s most important fuels. The national average retail price declined to $4.98 a gallon on Wednesday, according to the American Automobile Association and as reported by Bloomberg. That’s down from a peak of $5.69 a gallon in April, though still well above the $3.76 a gallon recorded on the eve of the U.S.-Iran war. “There may yet be more upward pressure on diesel prices if Russia, typically a major exporter, decides to implement a ban on sending diesel out of the country,” said the report. Meantime, President Trump has ordered the Department of Justice to look into gasoline prices, which he says aren’t falling fast enough. Average nationwide gasoline prices surged to the highest level since 2022 early in the U.S.-Iran war but have since fallen and are now below $4 a gallon.
CORN: July corn futures bounced on corrective buying overnight. Resistance stands at $4.16 1/4 on a continued push higher. Support comes in at yesterday’s low of $4.07, which is quickly backed by the contract low of $4.06 1/4.
SOYBEANS: July soybeans continue to struggle overcoming 10-day moving average resistance at $11.24. Additional strength eyes resistance at $11.30. Support comes in at yesterday’s low of $11.14, which coincides with the recent for-the-move low close.
WHEAT: July SRW futures found support at $5.83 1/4 overnight, which is quickly reinforced by support at $5.80. Resistance stands at $5.93 3/4 on persistent strength.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone, supported by cash fundamentals. Futures have consolidated the last couple sessions. Cash trade initiated at $260.00 this week, modestly above last week’s average. Choice beef meanwhile surged $4.25 to $400.31 Tuesday, breaking above the key psychological $400 mark, likely to support futures today.
HOGS: Lean hogs are expected to open with a mostly firmer tone on corrective buying. Prices hit resistance at $97.75 Tuesday in August futures, which capped gains. Prices are in a modest uptrend on the daily bar chart. The CME lean hog index is down another 30 cents to $91.47 as of June 22. Pork cutout slid 85 cents to $95.23 Tuesday, led by losses in bellies.