GRAIN CALLS
Corn: 6 to 8 cents lower.
Soybeans: 5 to 7 cents lower.
Wheat: 10 to 14 cents lower.
GENERAL COMMENTS: Weakness persisted across the grain and oilseed complex overnight as peace talks in the Middle East have funds exiting the market. Front-month crude oil futures are down around 7.5% this morning and near $95, showcasing the change in sentiment around the war in Iran. The U.S. dollar index is down around 500 points
The White House believes it’s getting close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations, according to two U.S. officials and two other sources briefed on the issue, in an exclusive Axios report. “The U.S. expects Iranian responses on several key points in the next 48 hours. Nothing has been agreed yet, but the sources said this was the closest the parties had been to an agreement since the war began. Among other provisions, the deal would involve Iran committing to a moratorium on nuclear enrichment, the U.S. agreeing to lift its sanctions and release billions in frozen Iranian funds, and both sides lifting restrictions around transit through the Strait of Hormuz. Many of the terms laid out in the memo would be contingent on a final agreement being reached, leaving the possibility of renewed war or an extended limbo in which the hot war has stopped but nothing is truly resolved,” said the report.
U.S. Ambassador to the EU Andrew Puzder said Washington will implement 25% tariffs on cars and trucks from the European Union “relatively soon” if the bloc doesn’t swiftly ratify a long-delayed trade deal, Bloomberg reported. “Unless we see some substantial progress, I think you probably should expect those relatively soon,” Puzder told Bloomberg Television. President Trump recently vowed to slap 25% tariffs on European vehicles, accusing the bloc taking too long to ratify the agreement, which was initially reached last July. The EU, meanwhile, is frustrated over several Trump moves it argues undermine Washington’s commitments under the pact.
CORN: July corn futures saw heavy selling overnight. Support at $4.70 stalled selling efforts, which is reinforced by the 40-day moving average at $4.66 1/4. Resistance comes in at $4.74 1/2 on a bounce, which is backed by $4.80.
SOYBEANS: July soybeans favored the downside overnight, with selling efforts stalling at the $12.00 mark, which remains key support today. Resistance stands at $12.10 then $12.14 3/4 on a bounce.
WHEAT: July SRW futures continue to fall under pressure. Bulls are looking to hold support at $6.11 1/2, the 40-day moving average, today. Additional support lies at the psychological $6.00 mark. Resistance stands at $6.28 on a reversal higher.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Higher.
CATTLE: Live cattle futures are expected to open higher in a continuation of yesterday’s strength. Discounts to the cash market are likely to limit the downside in futures, as trade has initiated at $255.00 this week, indicating persistent demand. Packer demand following record prices last week and poor margins remains up to question, especially considering the large amount of trade done in the negotiated market last week. Choice beef rose 78 cents to $392.34 Monday.
HOGS: Lean hogs are expected to open with a firmer tone following Monday’s gains, but persistent cash market weakness could undercut prices after the open. Packer submission problems delayed Monday’s cash data, but the recent weakness in the cash hog market has likely continued through early this week. Pork cutout slid $1.39 to $95.97 Monday, led by losses in bellies, though all cuts except ribs posted losses on the day.