GRAIN CALLS
Corn: 1 to 4 cents higher
Soybeans: 3 to 6 cents higher
Wheat: 2 cents lower to 2 cents higher
GENERAL COMMENTS: Outside markets were mixed for the grains overnight, with a weaker U.S. dollar index offering support and lower crude oil prices acting as pressure for the commodities sector. Strength in soymeal is helping bring soybeans back to the middle of its established trading range, but weakness in crude prices is limiting buying interest in soy oil.
USDA this morning reported 316,000 MT of corn for delivery to Mexico, with 65,000 MT for delivery in the current marketing year. 139,000 MT during 2026/2027, and 112,000 MT for delivery in 2027/28. USDA also reported 120,000 MT of corn for delivery to unknown destinations in the current marketing year.
Chinese President Xi Jinping lamented a world in “disarray,” using some of his strongest language yet to describe a collapse of the Western-led international order as he vowed to play a constructive role in the Middle East. “The international order is crumbling into disarray,” Xi told Spanish Prime Minister Pedro Sánchez on Tuesday in Beijing, using a Chinese phrase indicating not only chaos but also moral decay, reported Bloomberg. Xi said China would continue to play a constructive role in the Middle East by promoting peace and dialogue. “Xi Jinping underscored China’s principled stance of promoting peace and dialogue, and reiterated that China would continue to play a constructive role in this regard,” China’s state television cited Xi as saying to Abu Dhabi Crown Prince Sheikh Khaled bin Mohammed during a meeting Tuesday morning in Beijing. The Bloomberg report made no mention any Xi response to President Trump threatening new tariffs on China if it supplies heavy arms to Iran.
Top Arab Gulf oil producers can return half of shut fields to prewar levels of production within two weeks once transits through the Strait of Hormuz resumes, the International Energy Agency said, according to Bloomberg. Resumptions are likely to rise to 80% over another month but would be dependent on companies mobilizing labor and contractors, and the normalization of supply chains, the IEA said in its monthly oil market report. Restarting the remaining 20% would be more challenging because of a reduction in pressure in the fields and other constraints, the IEA said Tuesday. “Restoring output most crucially hinges on safe and sustained vessel transit through the Strait of Hormuz, which has become more complicated following a U.S. blockade,” the agency said.
The Trump administration is seeking information from farmers to help with an ongoing Justice Department probe into high costs for fertilizer, machinery and other farm inputs. USDA Deputy Secretary Stephen Vaden said he has met with officials at the Justice Department and the Federal Trade Commission to discuss lines of inquiry, and knows that “farmers have a lot of information that might be relevant to these investigations.” The Department of Justice is investigating whether fertilizer producers colluded to raise prices, Bloomberg reported. “We need farmers to help provide us with that information on a confidential basis, so that that can help inform the investigations that are ongoing,” Vaden said at the North American Agricultural Journalists’ annual conference in Washington on Monday. “I think we will have a mechanism in order to help encourage that exchange of information.” The fertilizer industry has faced scrutiny as only a handful of producers account for most of the U.S. supply of crop nutrients, and prices have never fully cooled after Russia’s invasion of Ukraine in 2022 upset supplies, said Bloomberg.
CORN: July corn futures worked slowly higher overnight, but are still working to overcome a price downtrend on the daily chart. Initial resistance stems from the 100-day moving average of, with support at $4.47 1/2.
SOYBEANS: July soybeans fell to the low end of the trading range it has followed for the last month. Resistance now stands at $11.94 1/2, with support at $11.71 1/4.
WHEAT: July SRW futures shook off weakness in oil prices during the overnight session, continuing their gains from Monday. A weaker U.S. dollar and lower condition ratings in yesterday’s Crop Progress report helped wheat stay firm. Support remains at last week’s low close of $5.80 3/4, with resistance at the 10-day moving average of $6.00.
LIVESTOCK CALLS
CATTLE: Choppy
HOGS: Choppy/lower
CATTLE: Live cattle futures are expected to open mostly choppy, with yesterday’s modest pullback in front-month futures dampening technical momentum just slightly. Futures are supported by the firm weekly cash trade reported by USDA yesterday that saw steers average $248.38. Boxed beef rose $1.02 to $381.92 in yesterday afternoon’s report.
HOGS: Lean hogs are expected to open choppy to lower due to continued technical pressure. The most recent lean hogs index is down 1 penny to $90.28, with tomorrow’s projected value down another penny to $90.27.