GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 1 to 3 cents higher.
Wheat: 1 cent lower to 1 cent higher.
GENERAL COMMENTS: Corn, soybeans and wheat saw an extension of yesterday’s strength, but did see some profit-taking going into the break. Bulls are looking to hold onto most of those gains, as consolidation would be healthy following the surges higher. Outside markets are mixed this morning as front-month crude oil futures are modestly higher while the U.S. dollar index is up around 50 points.
USDA reported daily export sales of 105,000 MT of soymeal for delivery to Colombia for delivery during the 2025-26 marketing year.
China has purchased more soybeans from the U.S., Bloomberg reported, citing people familiar with the matter. “State-owned firm Cofco has booked at least six cargoes of U.S. soybeans for loading between September and October, and the U.S. Department of Agriculture said Chinese buyers had already committed to buying 200,000 tons of American beans,” said the Bloomberg report. Cofco Group didn’t immediately respond to Bloomberg requests for comment. The White House has previously said China has agreed to buy at least $17 billion of U.S. agricultural products, in addition to at least 25 million tons of soybeans each year through 2028, after the summit between President Trump and his counterpart Chinese President Xi Jinping.
The National Weather Service today said above-normal temperatures and high humidity will continue to pose an elevated risk of heat-related illnesses across the Southeast through midweek, while heat gradually builds across the southern Plains. Showers and severe thunderstorms will develop over parts of the upper Midwest into the Northern Plains today. There is a slight risk (level 2/5) of severe thunderstorms over parts of the upper Midwest and the Northern Plains into parts of the Northern High Plains. As the front moves eastward into the upper Midwest/upper Great Lakes, showers and severe thunderstorms will develop over parts of that region.
A laden liquefied natural gas carrier, the Al Rekayyat, was hit by a projectile near the Omani coast as it exited the Strait of Hormuz, Bloomberg reports. The attack has heightened unease among shipowners and is testing a U.S.-Iran ceasefire agreement intended to halt attacks in the waterway. The incident has raised fresh concerns, with European gas prices climbing and oil prices ticking higher, amid ongoing challenges and interruptions to traffic in the strait.
CORN: December corn futures made a fresh high overnight. Bulls are looking to crack prices above $4.60 before tackling the 100-day moving average at $4.66. Support lies at the 40-day moving average at $4.56 3/4 then $4.51 1/2 on a push lower.
SOYBEANS: November soybean futures continue to work higher. Resistance stands at $11.90 then the psychological $12.00 mark. Support lies at $11.75 then $11.62 3/4 on profit-taking.
WHEAT: September SRW wheat gains have stalled near 40-day moving average resistance at $6.13. Strength above that mark eyes resistance at $6.21 1/4. Support comes in at $6.06 1/2 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly firmer tone, supported by technical buying. Losses stalled near the 100-day moving average Monday, which remains key support today. That technical benchmark has been strong support on pullbacks over the past several months. Cash cattle trade posted another week-over-week decline last week, which has weighed on futures. Choice beef slid 59 cents to $386.48 Monday, further pressuring packer margins.
HOGS: Hog futures are expected to open with a mostly weaker tone in a continuation of recent selling pressure. The 40-day moving average remains key resistance above the market. Still, an uptrend remains on the daily bar chart despite persistent weakness in the cash market. The CME lean hog index is down 12 cents to $91.55 as of July 2, ending the string of recent gains. Pork cutout rose 19 cents to $96.25 Monday, led by gains in hams.