GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 3 to 5 cents higher.
Wheat: 2 to 4 cents lower.
GENERAL COMMENTS: Corn and wheat led weakness overnight though saw an increase in buying going into the break. Soybeans saw relative strength and are eyeing key technical resistance. Stock futures continue to trade near recent highs and are awaiting inflation data coming later this week, front-month crude oil futures continue to work higher and are on two-month highs and the U.S. dollar index is trading around unchanged.
U.S. officials struck an optimistic tone as the second day of high-level trade talks with China unfolded in London. Treasury Secretary Scott Bessent described Monday’s session as a “good meeting,” while Commerce Secretary Howard Lutnick characterized the discussions as “fruitful,” noting on Tuesday that “they’re going well, and we’re spending lots of time together.” Talks reportedly lasted seven hours Monday and resumed Tuesday morning. The Chinese delegation did not comment publicly. Negotiations are centering on a potential deal that would see the U.S. ease certain tech export restrictions in exchange for Beijing lifting limits on rare earth shipments — critical components for U.S. industries ranging from smartphones to military hardware. White House National Economic Council chief Kevin Hassett told CNBC that if the talks conclude positively, the U.S. could ease export controls on some semiconductors — but emphasized that the move would not apply to Nvidia’s most advanced AI chips.
USDA rated the corn crop as 71% “good” to “excellent” and 5% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop improved 3.3 points to 378.2. USDA rated the soybean crop as 68% “good” to “excellent,” and 5% “poor” to “very poor.” On our CCI, the soybean crop improved 1.5 points to 365.4. USDA rated the spring wheat crop as 53% “good” to “excellent” and 9% “poor” to “very poor.” On our CCI, the spring wheat crop improved 10.7 points to 356.0, fueled by a 9.9-point increase in top producer North Dakota. Ratings for all three crops remain below year-ago. Click here for details.
South American crop consultant Dr. Michael Cordonnier raised his Brazilian corn production forecast 1 MMT to 130 MMT, as benefits of late-season rains more than offset any damage from recent frosts for the safrinha crop. Cordonnier left his Brazilian soybean crop estimate at 169 MMT. For Argentina, Cordonnier maintained his production forecasts of 48.5 MMT for soybeans and 50 MMT for corn.
CORN: July corn futures made a fresh for-the-move low overnight. Support comes in at $4.29 1/4 then the psychological $4.25 mark on continued selling pressure. Resistance stands at $4.34 1/4 then the 10-day moving average at $4.40 1/2 on corrective buying.
SOYBEANS: July soybean futures are once again challenging downtrend resistance. Bulls are looking to topple that mark at $10.60, with additional strength looking to overcome the 200-day moving average at $10.64. Support comes in at $10.56 then the psychological $10.50 mark on a turn lower.
WHEAT: July SRW futures saw followthrough selling overnight. Support at $5.34 capped the downside overnight. A break below that mark would target resistance at $5.30. Bulls are looking to break prices back above resistance at $5.41 3/4, which is backed by resistance at $5.49 1/4.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle and feeders are expected to open higher as futures remain supported by strength in cash fundamentals. Cash cattle averaged a record $236.62 last week, up $6.68 from the previous week, smashing the previous record. That marks seven consecutive weeks of record cash trade. The market is showing little sign of slowing down and futures continue to hold steep discounts to cash, which will continue to limit any downside. Wholesale beef saw impressive gains on Monday, with Choice climbing $2.17 to $267.25 and Select firming $2.20 to $358.93.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of recent strength, but waning pork cutout could limit gains after the open. Cutout pulled back from recent gains on Monday, falling $1.22 to $110.29, led by losses in hams. Movement has slowed amid higher prices, which could further pressure cutout values. Meanwhile, the CME lean hog index continues to strengthen, rising another 68 cents to $99.05 as of June 6, extending the seasonal rally.