GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: Steady to 2 cents higher.
Wheat: Winter wheat 1 to 3 cents higher; HRS 4 to 6 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat saw relatively tight ranges overnight following the surge higher on Monday. Bulls will look to hold onto most of Monday’s gain today. Front-month crude oil futures are modestly lower but are near recent highs. The U.S. dollar index is up around 50 points.
President Trump said he called off a new bombardment of Iran planned for Tuesday after Saudi Arabia and other Persian Gulf allies wanted more time to pursue diplomacy. Trump said the U.S. delayed the strikes “for a little while, hopefully maybe forever,” because “we’ve had very big discussions with Iran, and we’ll see what they amount to.” There was no immediate confirmation from Tehran of renewed talks, and Tehran’s leaders have taken a hard line, insisting the U.S. ends a blockade of Iranian ports and provides assurances they won’t be attacked again.
“Global finance chiefs are coming to terms with the new economic reality that a consumer-price shock they had hopes of skirting is looking likely to endure,” Bloomberg reported. “As the second day of Group of Seven discussions proceed in Paris, the aftermath of a bond-market readjustment factoring in more inflation has raised the burden of proof needed to keep borrowing costs unchanged. The prospect of higher interest rates is looming, with associated stress to growth and budget deficits. The talks with finance ministers and central bankers on Tuesday will now continue against a backdrop of 30-year U.S. Treasury yields hovering close to the highest since 2007.”
European Union officials will meet today to work to finalize legislation for the bloc’s trade deal with the U.S. Failure to reach an agreement risks missing President Trump’s July 4 deadline and could trigger a fresh round of tariff escalation. The European Parliament has added amendments to the legislation, including a stipulation that the agreement won’t be implemented until the U.S. honors its commitments.
CORN: July corn futures found staunch resistance at $4.77, the upper end of the ongoing downtrend on the daily bar chart. A daily close above that mark is needed to break the bearish trend. Support comes in at $4.72 1/2 on additional weakness.
SOYBEANS: July soybean futures saw consolidation overnight. Bulls are eyeing resistance at $12.20 then $12.25 on continued strength. Support lies at $12.05 1/4 on additional consolidation.
WHEAT: July SRW wheat saw modest followthrough strength overnight. Bulls are eyeing resistance at $6.75 on persistent strength. Support comes in at $6.60 then $6.51 1/4 on a turn lower.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open with a mostly firmer tone, supported by persistent strength in the cash market. Last week’s cash cattle average rose $4.33 from the previous week to a record $262.85. Futures continue to trade at a steep discount to the cash market, especially in the deferred contracts. Choice beef continues to climb, rising another $2.89 to $392.14 Monday.
HOGS: Hog futures are expected to open with a mostly firmer tone, supported by technical buying. Futures paused near recent lows Monday, which could spur strength today, pushing prices out of the lower end of the recent range. The CME lean hog index continues to flounder near recent lows, rising 4 cents to $90.50 as of May 15. Pork cutout rose 80 cents to $98.36 Monday, led by strength in butts.