Ahead of the Open | Grain complex sees pre-report strength

Corn, soybeans and wheat each favored the downside early in the overnight session but saw an increase in buying interest this morning.

Pro Farmer Ahead of the Open
Pro Farmer Ahead of the Open
(Lindsey Pound)

GRAIN CALLS

Corn: 3 to 5 cents higher.

Soybeans: 2 to 4 cents higher.

Wheat: Winter wheat 2 to 4 cents higher; HRS 6 to 8 cents higher.

GENERAL COMMENTS: Corn, soybeans and wheat each favored the downside early in the overnight session but saw an increase in buying interest this morning, putting each near session highs going into the break. Outside markets saw an uptick in volatility this morning following PPI coming in below expectations. Front-month crude oil futures are modestly lower, consolidating after recent strength gains, while the U.S. dollar index is around 925 points lower.

U.S. producer inflation (PPI) edged up 0.1% in May, following an upwardly revised 0.2% fall in April and below forecasts of a 0.2% increase. Prices for goods and services were both modestly higher. On an annual basis, producer prices increased 2.6%, in line with expectations and above an upwardly revised 2.5% increase in April. Core PPI slowed to 3.0% in May, down from 3.2% a month prior and below expectations of 3.1%.

USDA’s June Crop Production and Supply & Demand (WASDE) Reports at 11:00 a.m. CT will feature the second winter wheat crop estimate, along with updated old-crop and new-crop balance sheets. Modest changes are expected to winter wheat production and ending stocks. Click here to view pre-report expectations.

China’s ag ministry lowered its forecast for cotton imports in 2024-25 by 300,000 MT to 1.2 MMT due to U.S. tariffs, down sharply from 3.25 MMT in 2023-24. The ministry expects China’s cotton imports to rise to 1.4 MMT in 2025-26, unchanged from its prior outlook. The ministry kept its import forecasts for corn and soybeans unchanged for both 2024-25 and 2025-26. China is projected to import 7 MMT of corn in both marketing years, down sharply from 23.41 MMT in 2023-24. After importing a record 104.75 MMT of soybeans in 2023-24, imports are expected to fall to 98.6 MMT in the current marketing year and 95.8 MMT in 2025-26.

Export sales for the week ended June 5:

  • Corn: Net sales of 791,300 MT for 2024-25 were down 16% from the previous week and 33% from the four-week average. Increases came primarily for Japan and Mexico. Sales came in at the lower end of pre-report expectations ranging from 700,000 MT to 1.2 MMT.
  • Soybeans: Net sales of 61,400 MT for 2024-25 – a marketing year low, were down 68% from the previous week and 74% from the four-week average. Unknown destinations cancelled purchases totaling 260,700 MT. Sales were below pre-report expectations ranging from 100,000 to 500,000 MT.
  • Wheat: A total of 184,000 MT in sales were carried over to the 2025-26 marketing year, which was within expectations. Sales totaled 388,900 MT for 2025-26 and were primarily for Mexico, Indonesia and Japan. Sales for new-crop came in below pre-report expectations ranging from 400,000 to 600,000 MT.

CORN: July corn futures continue to struggle tackling resistance at $4.40 3/4, the 10-day moving average. Strength above that mark would look to overcome this week’s high of $4.45 3/4. Support comes in at $4.37 then $4.33 1/2 on a turn back lower.

SOYBEANS: July soybean futures saw weakness early overnight but have since rebounded. Bulls are looking to overcome resistance at $10.52 before tackling the for-the-move high close of $10.57 3/4. Support comes in at $10.48 3/4 then the overnight low of $10.42 1/2 on resurgent selling pressure.

WHEAT: July SRW futures traded to a fresh low overnight and bounced. Bulls are seeking to tackle resistance at $5.38 on continued strength, which is backed by resistance at $5.40 then $5.43 1/4. Support stands at $5.34 1/4 then the overnight low of $5.30.

LIVESTOCK CALLS

CATTLE: Choppy/higher.

HOGS: Choppy/higher.

CATTLE: Live cattle and feeders are expected to open with a mostly firmer tone as discounts to the cash market remain steep, though continued consolidation could limit gains after the open. Cash cattle trade has been slow to develop this week as prices are coming in steady/firmer. Trade is expected to be widely varied, with a wide range between the southern Plains and the northern market. Wholesale beef continues to work higher, as Choice cutout surged another $3.00 to $374.76 and Select climbed 91 cents to $360.75. USDA reported net beef sales of 15,300 MT for 2025, which were up 71% from the previous week and 21% from the four-week average.

HOGS: Lean hog futures are expected to open with a mostly firmer tone as cash fundamentals remain fully supportive, though consolidation could limit gains after the open as futures are short-term overbought. The CME lean hog index topped $100.00 for the first time since Aug. 16, 2023 as it is up another 94 cents to $100.91 as of June 10. Pork cutout remains supportive of higher cash hog prices as well, rising another $2.20 to $113.08, driven higher by strength in hams and bellies. USDA reported net pork sales of 9,700 MT for 2025, down 73% from the previous week and 70% from the four-week average.