GRAIN CALLS
Corn: 2 to 4 cents higher.
Soybeans: 2 to 4 cents lower.
Wheat: SRW 1 to 3 cents higher; HRW & HRS steady to 2 cents lower.
GENERAL COMMENTS: Grains saw relative strength overnight though saw a modest increase of selling pressure going into the break. Soybeans saw relative weakness though losses were limited. Outside markets saw a bit of an uptick in volatility this morning amid the European Central Bank cutting rates by 25 basis points and U.S. jobless claims rising to 8-month highs. Front-month crude oil futures are modestly firmer this morning while the U.S. dollar index is near unchanged.
Canada prepared possible retaliation measures against U.S. tariffs on steel and aluminum that President Donald Trump doubled to 50%. Canada is the top exporter of both steel and aluminum to the United States. Prime Minister Mark Carney said Canada is prepared to strike back against the U.S. if talks with Washington to remove Trump’s tariffs did not succeed. “We are in intensive negotiations with the Americans, and, in parallel, preparing reprisals if those negotiations do not succeed,” Carney told the House of Commons. Canada’s labor union Unifor called for retaliatory tariffs, while Ontario Premier Doug Ford urged Carney not to “sit back and let President Trump steamroll us.”
Mexican President Claudia Sheinbaum on Wednesday denounced Trump’s new 50% tariff on steel and aluminum imports as “unjust,” “unsustainable” and lacking any legal basis, warning it will increase costs and hurt jobs across North America. Economy Minister Marcelo Ebrard echoed her criticism and said Mexico would seek an exclusion from the tariff during his Friday meeting with U.S. officials in Washington. Failing that, Mexico will announce its response next week—though Sheinbaum emphasized it won’t be an “eye for an eye” retaliation. Sheinbaum and Ebrard both questioned the tariff’s legality under the U.S.-Mexico-Canada Agreement, arguing that such trade barriers contradict the spirit of regional cooperation.
Export sales for the week ended May 29:
- Corn: Net sales of 942,300 MT for 2024-25 were up 3% from the previous week but down 31% from the four-week average. Increases came primarily for Mexico and Japan. Sales came within pre-report expectations ranging from 775,000 MT to 1.4 MMT.
- Soybeans: Net sales of 194,300 MT for 2024-25 were up 33% from the previous week but down 30% from the four-week average. Sales were within pre-report expectations ranging from 100,000 to 500,000 MT.
- Wheat: Net sales reductions of 49,100 MT for 2024-25, which were less than the prior week. Sales were in the middle of expectations ranging from (200,000) to 100,000 MT. Sales totaled 444,900 MT for 2025-26 and were primarily for unknown destinations, Nigeria and Mexico. Sales for new-crop came in the middle of pre-report expectations.
CORN: July corn futures saw modest strength overnight. Bulls are seeking to overcome resistance at $4.45 1/4 on continued buying, which is backed by the psychological $4.50 mark. Support comes in at $4.38 3/4 then Tuesday’s low of $4.34 1/4 on a reversal lower.
SOYBEANS: July soybean futures saw relative weakness overnight. Bulls are seeking to hold initial resistance at $10.40, else a trip to $10.33 1/2 is possible. Resistance stands at $10.46 1/2 then the psychological $10.50 mark on a reversal higher.
WHEAT: July SRW futures continued higher overnight. Bulls are looking to topple psychological $5.50 resistance before challenging the May 21 high of $5.56 1/4. Support comes in at $5.41 1/4 then $5.36 1/2 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle and feeders are expected to open higher amid ongoing cash market strength, leading to a likely test of contract highs across the complex. Technical resistance could limit gains near contract highs, but steep discounts to the cash market would likely limit the downside. Cash cattle started trading at higher prices in the Southern Plains on Wednesday, which is likely to help score another all-time high this week, which would mark the seventh consecutive week of record prices. Wholesale beef ended Wednesday mixed as Choice cutout slid 28 cents to $365.16 while Select climbed 20 cents to $356.72. USDA reported net beef sales of 9,000 MT for 2025, down 39% from the previous week and 27% from the four-week average.
HOGS: Lean hog futures are expected to open with a mostly firmer tone as cash fundamentals remain supportive. The CME lean hog index is up another 41 cents to $96.75 as of June 3. June futures have struggled to build on recent cash market strength while deferred contracts have worked higher, showing traders anticipate the seasonal rally will persist into late summer. Pork cutout worked higher Wednesday, rising 51 cents to $106.62. Strength in bellies led cutout higher. USDA reported net pork sales of 36,400 MT for 2025, which were up 19% from the previous week and 25% from the four-week average. China at 12,700 MT led purchases of pork.