GRAIN CALLS
Corn: 7 to 9 cents lower.
Soybeans: 25 to 30 cents lower.
Wheat: Winter wheat 8 to 10 cents lower; HRS 4 to 6 cents lower.
GENERAL COMMENTS: Grain markets faced heavy selling this morning amid less than favorable rhetoric coming out of the meeting between President Trump and Chinese president Xi Jingping. Prices are near key support in corn and beans, marking today as a key session. Front-month crude oil futures are trading lower and near the $100 mark while the U.S. dollar index continues to inch higher.
USDA reported daily sales of 252,000 MT of soybeans for delivery to unknown destinations. Of the total, 120,000 MT is for delivery during the 2025-26 marketing year with the remaining 132,000 MT for delivery during 2026-27.
U.S. efforts to end the war with Iran were dealt a setback after a commercial vessel was apparently seized by unauthorized personnel near the United Arab Emirates, increasing uncertainty over control of the critical Strait of Hormuz, Bloomberg reported. “The ship, whose identity wasn’t immediately clear, was taken 38 nautical miles off the UAE coast and is now bound for the Islamic Republic, the U.K. Maritime Trade Operations said in a statement on Thursday.” The incident came amid an apparent uptick in vessels transiting the strait, which usually handles about a fifth of the world’s oil and liquefied natural gas supply. U.S. Secretary of State Marco Rubio urged China to persuade Iran to help reopen Hormuz, saying a protracted closure threatens the economies of countries that Beijing relies on for exports.
Here’s a catch-up on the latest developments regarding the meeting in Beijing between Presidents Trump and Xiand as reported by Bloomberg: The Xi-Trump meeting lasted more than two hours, with both sides talking up a vision for more stable ties. Statements from China focused on the Taiwan issue, with Xi reiterating the U.S. must handle the issue with “extreme caution.” Meanwhile, the U.S. readout from the meeting said both sides agreed the Strait of Hormuz must remain open. The next public event for the two leaders will be the state banquet. Premier Li Qiang also met with U.S. executives, saying the two countries can and should continue to be friends and partners. China renewed import licenses for hundreds of U.S. beef plants, according to people with direct knowledge of the matter. It’s an early positive signal on what more could come out of the summit. Markets are cautious. Chinese and Hong Kong stocks closed at their session lows. A White House official said Trump highlighted the need for China to boost purchases of American farm products. ”Soybean futures haven’t budged much since the headline on Trump and Xi discussing agricultural trade. Prices in Chicago are holding slightly lower. Bean traders are likely grasping for more concrete details. They wanted to see bigger, more formalized purchase commitments,” said Bloomberg. In an interview with CNBC this morning, U.S. Treasury Secretary Scott Bessent urged China to buy more U.S. soybeans than they have already committed to buy, because of the El Nino weather pattern that he said could cut soybean production. The U.S. also said China wants to buy more American crude oil to cut its Middle East oil reliance.
Export sales for the week ended May 7:
Corn: Net sales of 684,400 MT for 2025-26, down 50% from the previous week and 52% the four-week average. Mexico and Colombia led sales, while unknown destinations cancelled a significant chunk. Analysts expected sales of 1.0 to 1.9 MMT.
Soybeans: Net sales of 102,100 MT for 2025-26 were a marketing year low -- down 28% from the previous week and 60% from the four-week average. Analysts expected sales of 100,000 to 500,000 MT.
Wheat: Net sales of 133,500 MT for 2025-26, up 70% from the previous week and 10% from the four-week average. Sales were in the upper end of pre-report expectations ranging from 50,000 to 150,000 MT.
CORN: July corn futures fell near 20-day moving average overnight at $4.72. Persistent selling finds support at $4.68 1/4. Bulls are to break prices above resistance at $4.75 then $4.80 on a bounce.
SOYBEANS: July soybeans are trading near firm support at $12.00. Additional support comes in at $11.91 3/4 on persistent weakness. Resistance stands at $12.08 1/2 then $12.25 on a reversal higher.
WHEAT: July SRW futures are facing consolidation again today. Support comes in at $6.57 3/4 on persistent selling. Bulls are looking to topple resistance at $6.75 then $6.80 on a turn back higher.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open higher following big gains on Wednesday. Persistent strength in the cash market led to resurgent strength in futures. June futures are still below the cash market, which looks poised to break another record this week. Cash trade so far has averaged $259.92, a poke above $260.00 looks likely. Choice beef meanwhile continues to flounder, falling $2.05 to $388.68 yesterday.
HOGS: Lean hogs are expected to open with a mostly firmer tone in a continuation of yesterday’s strength. Bulls are looking to build on yesterday’s gains, though technical selling could thwart their efforts. Meanwhile, strength returning to the cash market, as the CME lean hog index is up another 26 cents to $90.74 as of May 12, could support continued gains. Pork cutout rose 51 cents to $96.03 Wednesday, led by gains in butts.