GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 6 to 8 cents higher.
Wheat: SRW 1 to 3 cents higher; HRW steady to 2 cents higher; HRS 1 to 3 cents lower.
GENERAL COMMENTS: Soybeans led strength overnight amid favorable trade news between the U.S. and China, though there has been no material update to trade negotiations. Corn and wheat saw action on either side of unchanged overnight. Outside markets are mixed this morning as front-month crude oil futures are modestly lower while the U.S. dollar index is around 200 points lower.
President Trump moved to fire Federal Reserve Board Governor Lisa Cook following allegations she falsified mortgage documents, citing “sufficient cause” to fire her. Cook fired back and said Trump has no authority to fire her, and she won’t quit, with her lawyer planning to take “whatever actions are needed to prevent” Trump’s “illegal action.” Forcing out Cook would give Trump an opportunity to secure a four-person majority on the Fed’s seven-member Board of Governors. Global stock and financial markets were not seriously rattled by the news, but neither did they take it in stride. Most Asian and European markets sold off a bit, while the U.S. stock indexes were slightly lower overnight. U.S. Treasury market yields up-ticked and the U.S. dollar index weakened slightly.
USDA Monday afternoon said the condition of the 2025 U.S. corn was unchanged at 71% rated “good” to ”excellent.” Most of the improvements were generally found in the western locations, while most of the declines were found in the eastern and southern locations. USDA said the U.S. soybean crop improved 1%, to 69% rated “good” to ”excellent.” USDA said the U.S. spring wheat crop is in 49% “good” to ”excellent.” On the weighted Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop declined 0.8 points to 381.6. and the soybean crop decreased 1.6 points to 373.7. The spring wheat rating decreased 2.4 points, reversing slight increases over the prior two weeks.
Pro Farmer crop consultant Michael Cordonnier left his U.S. corn yield unchanged at 184.0 bu./ac. with a neutral bias going forward. Cordonnier also left his U.S. soybean yield unchanged this week, at 53.0 bu./ac. with a neutral bias going forward.
CORN: December corn saw additional consolidation overnight. Gains have recently been capped by 40-day moving average resistance at $4.14, while bulls are seeking to hold prices above resistance at $4.08 1/2 to keep bullish momentum intact.
SOYBEANS: November soybeans rebounded overnight. Bulls are looking to tackle last week’s high close of $10.58 1/2, which is reinforced by resistance at $10.62 3/4. Support stands at the psychological $10.50 mark on a reversal lower.
WHEAT: December SRW wheat continue to grind higher. Bulls are looking to topple 20-day moving average resistance at $5.34 1/4 on persistent strength. Support comes in at $5.29 on profit-taking.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly firmer tone, though a continuation of selling pressure from Monday could weigh on prices after the open. Cash fundamentals continue to be supportive as cash cattle prices boasted another record last week. Wholesale beef continues to push higher as well, recently putting packer margins into the black. Choice cutout rose another 58 cents to $408.49 while Select surged $1.72 to $385.38 Monday.
HOGS: Lean hog futures are expected to open with a mostly weaker tone as a weaker cash market weighs on prices. October futures are struggling against key technical resistance as well, limiting the upside. The CME lean hog index is down another 57 cents to $107.27 as of August 22. Pork cutout meanwhile has shown resilient strength, rising another $1.28 to $114.17 Monday, led by strength in picnics.