GRAIN CALLS
Corn: 1 to 3 cents lower.
Soybeans: 2 to 4 cents lower.
Wheat: SRW steady to 2 cents lower; HRW 2 to 5 cents higher; HRS 1 cent lower to 1 cent higher.
GENERAL COMMENTS: Corn, soybeans and wheat each hit for-the-move lows overnight. A bounce in equities and front-month crude oil futures did little to stir buyers as the technical posture remains fully bearish. Strikes picking up in Iran have underpinned crude, while the U.S. dollar index is around 140 points lower this morning.
USDA on Friday afternoon confirmed a second case of New World screwworm in a one-month-old calf in Zavala County, Texas. The infected calf was found about 5 1/2 miles from the first confirmed case announced last week, placing it well within the 12-mile quarantine and surveillance zone already established by federal and state animal health officials. USDA officials said the second case of NWS does not necessarily indicate that the outbreak is spreading beyond the controlled zone. USDA said it has accelerated sterile fly releases, movement controls, animal inspections and surveillance to prevent the parasite from becoming established in the U.S. Meantime, USDA. Secretary Brooke Rollins this afternoon will hold briefings at the new Knipling-Bushland U.S. Livestock Insects Research Laboratory in Kerville, Texas. Following the briefings, she will host a press conference there to provide updates on NWS situation. The press conference is scheduled to begin at 2:00 p.m. CDT. Texas Governor Greg Abbott expressed concern Friday that a new factory isn’t slated to start breeding sterile New World screwworm flies for more than a year as a big part of the effort to stop its flesh-eating larvae from threatening the $113 U.S. billion cattle industry, the Associated Press reported. Abott said Texas is willing to spend its own funds to see that construction is “24 hours a day, seven days a week.”
Israel said it struck military targets in Iran, retaliating against earlier missile attacks by Tehran despite President Trump’s call for Prime Minister Benjamin Netanyahu to refrain from hitting back. Iran launched fresh strikes targeting key facilities at Israel’s Nevatim and Tel Nof airbases in response, the semi-official Fars news agency said and as reported by Bloomberg, citing the Islamic Revolutionary Guard Corps. Yemen’s Iranian-backed Houthis also announced a blockade of Israeli ships in the Red Sea. The Israel Defense Forces see the campaign against Iran lasting several days and are preparing to mobilize reserve soldiers, Israel’s Army Radio reported. On Sunday, U.S. Central Command said it downed two Iranian attack drones that threatened international maritime traffic in Hormuz, which followed six ballistic missiles fired at Bahrain and Kuwait on Friday. Those were intercepted, while the U.S. struck Iranian coastal surveillance radar sites.
CORN: July corn futures hit a fresh contract low overnight. Support comes in at $4.12 1/2 on continued selling pressure. Bulls are looking to overcome resistance at $4.25 on corrective strength.
SOYBEANS: July soybean futures hit a four-month low overnight. Bulls are looking to hold support at the overnight low of $11.11 1/4 on a push lower. Resistance stands at the psychological $11.25 mark on a bounce.
WHEAT: July SRW wheat continue to face volatile price action. Bulls are struggling to put in a bottom. Support comes in at $5.75 on continued selling pressure while resistance stands at $5.94 on a bounce.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open with a mostly firmer tone in a continuation of recent strength. Resistance at the 40-day moving average could continue to provide stiff resistance, but bullish cash fundamentals should continue to support futures. Cash trade going into Friday averaged $256.38, roughly in-line with the prior week. Choice beef rose 4 cents to $392.70 Friday, stalling the recent downtick in prices.
HOGS: Hog futures are expected to open with a mostly firmer tone, supported by technical buying. Friday’s sell-off put futures near support at last week’s lows. Futures slid despite continued gains in the cash market, as the CME lean hog index is up another 9 cents to $92.60 as of June 4. Pork cutout surged $3.05 to $101.18 Friday, led by gains in loins, butts and picnics, though all cuts except bellies saw gains on the day.