GRAIN CALLS
Corn: 5 cents higher to 4 cents lower.
Soybeans: 5 to 9 cents lower.
Wheat: 4 cents higher to 3 cents lower.
GENERAL COMMENTS:
Corn and soybean futures are expected to open lower as rainfall and milder temperatures across much of the Midwest aid crop development. Spring wheat futures are seen opening higher on persistent dryness in the Northern Plains, while HRW and SRW markets may face pressure from ongoing winter harvest and weakness in corn. In other markets, U.S. stock indexes are expected to open sharply down amid concern a Covid variant may derail the global economic recovery. Yields for 10-year Treasuries fell to around 1.25%, the lowest since February.
Much of the Midwest has received moisture this week, though some dry areas of the northwest Corn Belt have seen just light accumulation and need more rain. Drought in Canada’s Prairies continued to deepen and expand over the past week, with little relief expected next week, World Weather Inc. said in a report today.
Tropical Storm Elsa will weaken to a tropical depression as it moves over North Carolina and to the northeast today; the storm has brought significant rain and some flooding to the Southeast. Also, significant rain is expected for Missouri, southern Iowa, eastern Kansas and into Illinois tomorrow through Saturday, World Weather said, noting that some flooding is possible.
Brazil cut its official corn crop estimate by 3 MMT from last month to 93.4 MMT. But that’s still well above most private crop estimates. Crop Consultant Dr. Michael Cordonnier is at 88 MMT. Brazil-based AgRural estimates the crop at just 85.3 MMT.
The government of Santa Fe province yesterday ordered port workers to suspend a day-old strike that was blocking grain shipments at the Argentina’s main Rosario port hub. The government also mandated that wage negotiations with the UOCRA construction workers union resume.
In overnight demand news, Saudi Arabia’s main wheat buying agency issued an international tender to buy around 360,000 MT of wheat. Japan purchased 57,630 MT of food-quality wheat from the U.S., as well as 23,370 MT from Canada and 27,175 MT from Australia.
CORN: Midwest weather is turning favorable as the corn crop heads into its critical pollination phase. December corn fell as low as $5.23 1/2 overnight, near key a support level around $5.20, and within sight of the psychologically important $5 mark.
SOYBEANS: Midwest weather is also bearish for soybeans, though declines have been limited in part by beliefs the market’s recent slide will stir fresh export business. USDA hasn’t reported any soybean sales, despite talk of Chinese buying. A daily sale of 122,200 MT of soymeal to Mexico for 2021-22 was announced this morning. November soybeans fell as low as $13.11 1/2 overnight, and still has an unfilled a gap on the daily chart between Friday’s low of $13.82 1/2 and Tuesday’s high of $13.73 1/4.
WHEAT: With the U.S. winter wheat harvest nearing the halfway point, HRW and SRW futures face limited rally prospects and potentially more downside risk as chart technicals erode. Spring wheat retains upside potential as Northern Plains crop conditions worsen.
CATTLE: Steady-mixed
HOGS: Steady-firmer
CATTLE: Cash cattle markets popped higher yesterday, potentially boosting nearby live cattle contracts, but wholesale beef took another turn lower, reaching the lowest levels in nearly three months. Live steers in five top U.S. feedlot areas averaged $126, up from an average of $123.82 at the end of last week. Choice cutout values averaged $284.90, down $1.78 from the previous day and the lowest since April 23.
HOGS: Lean hog futures may find support from a firmer tone in cash markets, but technicals remain soft. Carcasses on daily direct markets yesterday averaged $110.91, up $2.93 from the end of last week, according to USDA. Pork cutout values averaged $115.74, up $2.13 from the previous day, on movement of 278.5 loads.