GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: Steady to 3 cents lower.
Wheat: SRW steady to 2 cents higher; HRW 1 to 3 cents higher; HRS 2 to 4 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each opened lower overnight but recouped most of the losses and are trading nearer session highs. Wheat export sales for new crop continue to be impressive, helping bolster grains. Outside markets are unfavorable this morning as front-month crude oil futures are working lower amid a rumored OPEC+ production hike, while the U.S. dollar index is around 225 points higher.
Health and Human Services Secretary Robert F. Kennedy Jr. is preparing to release his long-awaited “Make America Healthy Again” (MAHA) report, a sweeping health policy document that calls for rethinking American nutrition guidelines, vaccine trials and the influence of industry lobbyists — while stopping short of a full regulatory assault on pesticides, the Wall Street Journal (WSJ) reported in an exclusive item. WSJ said the report questions the health impact of glyphosate (the key ingredient in Bayer’s Roundup) and atrazine, two widely used herbicides, especially on children. However, it does not classify them as unsafe. WSJ said the draft calls for a new government health assessment of glyphosate in 2026, a move that has already stirred resistance from agricultural groups. The MAHA report strongly critiques ultra-processed foods and the federal dietary guidelines that, it argues, fail to address their health consequences, according to the WSJ account.
The legislation includes $3.8 trillion in tax cuts and cuts in growth of Medicaid and SNAP coupled with the phase out of some clean energy tax credits from the Inflation Reduction Act and increases for reference prices in Title I of the farm bill. The bill now heads to the Senate, where significant revisions — especially to tax provisions — are expected. Senate Republicans are signaling plans to overhaul key sections, even as a potential debt ceiling crisis looms in August. If altered, the House would need to pass the revised version with its razor-thin three-seat GOP majority — and against a louder Democratic campaign.
Export sales for the week ended May 15:
- Corn: Net sales of 1.191 MMT for 2024-25 were down 29% from the previous week and 14% from the four-week average. Increases came primarily for Japan and Mexico. Sales came in the middle of pre-report expectations ranging from 700,000 MT to 1.6 MMT.
- Soybeans: Net sales of 307,900 MT for 2024-25 were up 9% from the previous week but down 10% from the four-week average. Increases came primarily for Mexico and unknown destinations. Sales were above pre-report expectations ranging from 100,000 to 300,000 MT.
- Wheat: Net sales reductions of 13,400 MT for 2024-25, down from the previous week and from the four-week average. Sales were in the middle of expectations ranging from (200,000) to 100,000 MT. Sales totaled 882,200 MT for 2025-26, above pre-report expectations for the second straight week.
CORN: July corn futures are poised to challenge downtrend resistance at $4.63 3/4. That is quickly backed by the 40-day moving average at $4.64 3/4, then 100-day moving average resistance at $4.69 3/4. Support comes in at $4.58, which capped the downside overnight, then $4.54 1/4.
SOYBEANS: July soybean futures opened lower overnight but have since recovered somewhat. Bulls are looking to tackle the 200-day moving average at $10.65 1/4 on persistent strength. Support stems from the 10-day moving average at $10.57 1/4 then the overnight low of $10.51.
WHEAT: July SRW futures saw action on either side on unchanged overnight. Bulls are seeking to reclaim resistance at $5.50 which is reinforced by yesterday’s high of $5.56 1/4. Support comes in at $5.43 3/4 on a reversal back lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle and feeders are expected to open higher in a continuation of recent strength. Traders have been wary to push futures higher as they anticipate a downturn in the cash market, but discounts futures continue to hold to the cash market have limited the downside. Some higher cash cattle trade took place in the northern market on Wednesday, which could prove supportive for futures today. Wholesale beef continues to grind higher as packers are becoming more focused on building margins. Choice beef rose 84 cents to $359.59 Wednesday while Select rose $3.32 to $348.28. USDA reported net beef sales of 12,300 MT for 2025, down 16% from the previous week but up 8% from the four-week average.
HOGS: Lean hog futures are expected to open with a mostly firmer tone amid persistent strength in cash fundamentals. The CME lean hog index is up another 49 cents to $92.34 as of May 20, marking the largest daily gain in the last week and a half. Pork cutout continues to struggle building much momentum above $100.00, as it fell 48 cents to $100.04 Wednesday, led lower by bellies. Traders have been hesitant to build premiums in futures as they are wary of the summer outlook. That concern should be somewhat stifled today with China’s return to the U.S. pork market, noted in today’s export sales report. USDA reported net pork sales of 37,400 MT for 2025, which was up 52% from the previous week and 68% from the four-week average. China bought 7,800 MT.