GRAIN CALLS
Corn: 1 cent lower to 1 cent higher.
Soybeans: 1 to 3 cents lower.
Wheat: Winter wheat 2 to 4 cents higher; HRS 3 to 5 cents higher.
GENERAL COMMENTS: Wheat saw relative strength, soybeans consolidated near recent highs and corn saw moderate weakness overnight. Each saw a modest increase in selling pressure going into the break. Outside markets were supportive overnight as front-month crude oil futures are modestly higher and near recent highs, while the U.S. dollar index is around 175 points lower.
Iran’s Supreme Leader Ayatollah Ali Khamenei said in a statement read on state media on Wednesday his country will not accept President Donald Trump’s call for an unconditional surrender in the conflict with Israel. He warned that any U.S. strike on Iran will have “serious irreparable consequences.” Trump was reportedly considering options that include joining Israel in attacking Iranian nuclear sites.
The Fed is widely expected to keep interest rates unchanged following the conclusion of the two-day monetary policy meeting. Focus will be on the post-meeting statement, updated economic projections from Fed officials and Chair Jerome Powell’s comments from his press conference, as policymakers assess the cooling economy, risk of higher inflation from U.S. tariffs and escalating tensions in the Middle East.
The Trump administration is moving swiftly to broaden Section 232 tariffs — originally imposed on steel, aluminum, and autos — to cover a far wider range of consumer goods, intensifying trade tensions and raising the stakes for importers and global supply chains. The Commerce Department is expected within weeks to announce the results of seven new national security investigations into sectors such as semiconductors, pharmaceuticals, and critical minerals. Trump has already expanded the steel and aluminum tariffs to include products like dishwashers, dryers, and washing machines, with new duties of up to 50%. The administration claims these goods are “vital to national security.”
CORN: July corn futures saw relative weakness overnight. Bulls are seeking to hold support at the June 10 for-the-move low of $4.29 1/4 on persistent selling. Resistance stands at $4.32 3/4 then the 10-day moving average at $4.37 on a bounce.
SOYBEANS: July soybean futures continue to consolidate near recent highs. Tentative resistance stands at $10.75 while additional strength looks to overcome Monday’s high of $10.79 1/4. Support comes in at $10.70 then the 200-day moving average at $10.64 on a reversal lower.
WHEAT: July SRW futures continued higher overnight. Bulls are looking to overcome resistance at $5.54, the 100-day moving average, which is quickly backed by the June 9 high of $5.57 3/4. Bulls are seeking to hold prices above $5.50, while persistent selling targets support at $5.44 3/4.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Live cattle and feeders are expected to open with a mostly weaker tone in a continuation of yesterday’s selling pressure. Futures continue to trade at a steep discount to the cash market, which could limit additional selling pressure. Cash trade so far this week has been light and has not reflected weaker futures. If the cash market does turn lower, it could ignite additional futures selling. Wholesale beef continues to strengthen, with Choice cutout surging another $4.40 to $386.51 and Select jumping another $5.07 to $372.54 on Tuesday.
HOGS: Lean hog futures are expected to open with a mostly weaker tone in a continuation of yesterday’s reversal from contract highs. July futures continue to be overbought on the daily bar chart, which could spur additional profit-taking, but cash fundamentals remain fully supportive. The CME lean hog index is up another $1.25 to $104.95 as of June 14, marking the largest daily gain in the string of seasonal strength. Pork cutout firmed 41 cents to $119.89 on Tuesday, as strong gains in butts ribs and hams more than offset a $3.56 decline in primal bellies.