GRAIN CALLS
Corn: 5 to 7 cents higher.
Soybeans: 9 to 11 cents higher.
Wheat: Winter wheat 11 to 14 cents higher; HRS 7 to 9 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat surged higher this morning on concerns of an extended conflict in Iran. President Trump this morning was quoted this morning that if he does not like the agreement, more bombs will be dropped. Ag markets responded higher alongside a bounce in crude oil futures. Meanwhile, the U.S. dollar index is up around 60 points.
USDA reported daily export sales of 372,000 MT of soybeans for delivery to unknown destinations. If the total, 60,000 MT is for delivery during the 2025-26 marketing year, while the remaining 312,000 MT is for delivery during 2026-27.
Iran would be allowed to start oil exports immediately under an interim deal with the U.S. and gain access to a $300 billion economic development program, according to a Bloomberg report. “The U.S. Treasury Department will issue waivers for exports of Iranian crude oil and petrochemical products immediately after the memorandum is signed, and the U.S. will end its naval blockade of Iranian ports. The U.S. and its regional partners would create a plan to rehabilitate Iran and allow for its economic development, with financing of at least $300 billion, according to the draft document.” The two sides plan to formally sign the memorandum of understanding on Friday in Switzerland, formalizing an agreement reached earlier and clearing the way for 60 days of talks to end the war and put strict limits on Iran’s nuclear program. Another person familiar with its contents, who asked not to be identified discussing private deliberations, said technical details were still being worked out, suggesting precise language may still change before the signing, said Bloomberg.
The U.S. agricultural sector needs to “explore new pathways to reignite growth in farm communities, drive innovation and expand agriculture’s capacity to feed and fuel the world using fewer resources,” said a compelling report released by S&P Global. “Under a scenario where biofuel demand expands, U.S. agricultural production remains strong and continues to serve as a secure, ample, and reliable long-term supplier of corn, ethanol, and other agricultural products to domestic and international markets,” said S&P Global. Biofuels stand out as a uniquely powerful catalyst with the potential to restore long-term profitability to American farms and drive investment in rural communities, as well as unlock demand for sustainable feedstocks, creating a market that rewards farmers for pioneering modern farm practices. The report said that under an “optimized scenario,” global biofuel output would triple or more by 2050.
CORN: July corn futures are struggling to overcome 10-day moving average resistance at $4.21 1/4. Additional strength comes in at the 10-day moving average resistance at $4.25. Support comes in at $4.17 1/2 then $4.13 3/4 on a reversal lower.
SOYBEANS: July soybean futures continue to work higher. Resistance comes in at $11.43 3/4, the 200-day moving average, on continued strength. Support comes in at $11.31 3/4, the 10-day moving average, on a reversal lower.
WHEAT: July SRW wheat surged higher overnight. Gains stopped shy of the 40-day moving average at $6.10 3/4 overnight. Additional resistance stands at $6.22 1/2. Support lies at $6.03 3/4 then the psychological $6.00 mark on a turn lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open higher in a continuation of recent strength. Bulls are back in control of the technical advantage after the past couple days of gains. Cash trade is likely to reflect recent trade in futures when trade picks up later this week. There is a Cattle on Feed report tomorrow, so trade has been slow so far this week. Choice beef meanwhile surged $4.53 to $399.58 Tuesday, which provided some relief to packer margins, which remain deep in the red.
HOGS: Hog futures are expected to open with a mostly weaker tone in a continuation of yesterday’s selling pressure. Bulls are looking to defend last week’s low, but heavy selling is likely to continue to weigh on prices. The CME lean hog index is down another 16 cents to $91.93 as of June 15, extending the recent slide. Pork cutout slid $1.55 to $95.57 Tuesday amid losses in all cuts.