GRAIN CALLS
Corn: Steady to 2 cents lower
Soybeans: 2 to 5 cents higher
Wheat: Spring wheat 4 to 7 cents higher, winter wheat 1 to 2 cents higher
GENERAL COMMENTS:
The U.S. Northern Plains and Canada’s Prairies are still looking for excessive heat to develop this weekend and prevailing for nearly a full week thereafter, according to World Weather Inc. It says, Extreme highs of 100 to 110 will be common with a few readings above 110 not out of the realm of possibilities,” as the dry soils will allow temps to rise quickly. The heat will also move into the northern and western Corn Belt, though temps won’t be as high. Conditions will also be dry in these areas the next 10 days. Areas of the southern and eastern Corn Belt that have received plentiful rains, conditions will be favorable.
Corn export sales for the week ended July 8 totaled 138,800 MT for 2020-21, down 20% from the previous week but up 31% from the four-week average. New-crop sales totaled 133,200 MT. Exports of 1.062 MMT were down 18% from the previous week and 26% from the four-week average. China took shipment of 477,600 MT of U.S. corn for the week.
Old-crop soybean export sales were only 21,700 MT, down 66% from the previous week and 76% from the four-week average. For 2021-22, net sales totaled 290,800 MT.
Weekly wheat export sales of 424,700 MT were near the top end of expectations. Wheat sales were up 46% from the previous week and 44% from the four-week average. Exports of 365,900 MT were down slightly compared with the previous week and the four-week average.
CORN: December corn futures were unable to push above Wednesday’s high overnight after entering the July 6 gap yesterday. Wednesday’s high at $5.62 3/4 is a key level today, as a push above it would likely attract more chart-based buying. But failure to clear that level could lead to a pullback after three days of strong gains to start the week.
SOYBEANS: November soybeans filled the July 6 gap yesterday but couldn’t find active followthrough buying above Wednesday’s highs overnight. The overnight high of $13.89 1/2 will likely determine if fresh buyers come into the market or the contract eases after four days of gains.
WHEAT: September HRS futures pushed to a new high overnight, eclipsing the contract high from Wednesday. Bulls are now eyeing the $9.00 mark on the continuation chart. Crop concerns in the Northern Plains and Canadian Prairies remain price-supportive. But fresh speculative buying is needed to extend the price rally.
CATTLE: Steady to lower
HOGS: Steady to lower
CATTLE: Live cattle faded late yesterday, which is expected to produce a weaker open this morning. Cash cattle prices softened a bit yesterday from earlier in the week and weekly beef export sales were disappointing. USDA reported weekly sales of 9,300 MT were down 61% from the previous week and 44% from the four-week average. China bought a net 1,600 MT of U.S. beef during the week. Exports of 15,500 MT were down 13% from the previous week and 15% from the four-week average. China was the destination for 3,300 MT of U.S. beef.
HOGS: Hog futures finished lower and low-range on Wednesday, which could lead to some followthrough selling this morning. Weekly pork export sales were also disappointing. Weekly pork export sales totaled 10,600 MT, down 76% from the previous week and 68% from the four-week average. USDA reported net sales reductions of 1,300 MT for China. Exports of 25,200 MT were a marketing-year low. China took shipment of 4,900 MT of U.S. pork for the week. But seller interest should be limited by rising cash hog prices, as the average national direct price rose $1.49 yesterday. The cash index is up 33 cents at $111.00. July hogs expire at noon CT today.