GRAIN CALLS
Corn: 10 to 12 cents lower.
Soybeans: 10 to 12 cents lower.
Wheat: 29 to 31 cents lower.
GENERAL COMMENTS: Corn and wheat broke below yesterday’s low overnight, a key moving technical benchmark that had capped the downside over the past couple weeks. How prices react after this morning’s open will be key, as overnight weakness has recently been bought. Front-month crude oil futures are trading higher this morning and are near recent highs while the U.S. dollar index is around 600 points lower.
President Trump Wednesday afternoon said renewed attacks on Iran would likely be short-lived, reiterating his claim that the U.S. controls the Strait of Hormuz. The U.S. military carried out a second round of strikes on Iran at mid-week, targeting radar systems and mine-laying capabilities, and Iran retaliated with drone and missile volleys on U.S. bases. “We took out all of the new equipment that they tried to build along the Strait of Hormuz — some defensive, some offensive,” Trump said of the earlier strikes and as reported by Bloomberg. “It was a very heavy attack last night, and we’re prepared to do another one any time we want.” There are still signals the conflict could be prolonged for months. The U.S. is extending troop deployments in the Middle East to maintain its presence of 50,000 personnel and give Trump flexibility on military options, the Wall Street Journal reported, citing people familiar with the matter.
A disagreement between Chinese and U.S. officials at a Group of 20 finance chiefs meeting in North Carolina this week revolved around a dispute over the phrase “non-market” in a sentence addressing trade imbalances. The U.S. side attributed the impasse to disagreements on language spanning issues from critical minerals to debt restructuring, while Chinese officials saw the term as a veiled attack on state-owned companies. The final chair statement from the U.S. included a line saying countries should agree to “eliminate non-market policies and practices that exacerbate imbalances,” which was opposed by China.
Export sales for the week ended August 27:
Corn: Net sales reductions of 829,600 MT for 2025-26 were led by cancellations from unknown destinations and Japan. Old-crop sales were well below expectations ranging from -200,000 to 200,000 MT. New crop sales totaling 1.986 MMT were led by Mexico and Japan. Trade expected sales between 500,000 MT and 1.6 MMT.
Soybeans: Net sales reductions of 94,200 MT for 2025-26 were led by cancellations from Egypt and unknown destinations. Sales were in the middle of expectations ranging from -200,000 to 200,000 MT. New crop sales totaled 1.948 MMT, with China and unknown destinations leading purchases. Trade expected sales between 1.4 MMT and 2.5 MMT.
Wheat: Net sales of 313,500 MT for 2026-27, down 22% from the previous week and 7% from the four-week average. Mexico and the Philippines led sales. Sales were below expectations ranging from 350,000 to 650,000 MT.
CORN: December corn tagged 10-day moving average support overnight. That stands as key support at $5.28 1/2, which is reinforced by support at $5.25. Resistance stands at $5.40 then $5.46 on a turn higher.
SOYBEANS: November soybeans saw a continuation of Wednesday’s selling overnight. Support comes in at $12.90 then $12.77 1/2 on persistent selling. Resistance stands at $13.00 then $13.17 3/4 on a reversal higher.
WHEAT: December SRW wheat saw sharp losses overnight. Bulls are looking to hold support at $7.40 then the 20-day moving average at $7.24 1/2. Resistance comes in at $7.47 1/2 then the psychological $7.50 on a bounce.
LIVESTOCK CALLS
CATTLE: Lower.
HOGS: Choppy/higher.
CATTLE: Live and feeder cattle futures are likely to be weighed down by reports of lower cash trade taking place. Futures broke to a fresh for-the-move close on Wednesday, an indication of eroding technicals as well. Cash cattle trade has averaged $217.92 so far this week, marking another week-over-week decline. Choice beef sunk 97 cents to $378.78 Wednesday,giving up a portion of recent gains.
HOGS: Lean hog futures surged higher early Wednesday before facing profit-taking. Further strength is possible, especially given a bounce in the cash market. The CME lean hog index is up 27 cents to $90.85 as of Sept. 1, stalling the seasonal decline. Pork cutout slid $2.28 to $95.62 Wednesday, led by losses in bellies and hams.