GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 7 to 9 cents lower.
Wheat: Winter wheat 6 to 8 cents higher; HRS 1 to 3 cents higher.
GENERAL COMMENTS: Wheat saw corrective strength overnight while corn and soybeans continue to slid lower. Soybeans hit a fresh for-the-move low.Attention remains on the Black Sea and Strait of Hormuz as headlines whipsaw expectations for shipments. Front-month crude oil futures are modestly higher this morning while the U.S. dollar index is down around 130 points lower.
USDA reported daily export sales of 120,000 MT of corn for delivery to Mexico, with 30,000 MT for delivery in 2026-27 and 90,000 MT for delivery during 2027-28.
President Trump on Tuesday evening said a deal on the Strait of Hormuz is possible as early as today, as expectations build for an arrangement that allows for the reopening of the crucial waterway for energy markets. “It could happen. Tomorrow or the next day,” Trump told reporters in Los Angeles on Tuesday night, according to Bloomberg, when asked about reports that an announcement is imminent. Talks with Iran are “moving along very nicely,” he added. “We’ll know in 48 hours.” The U.S., Iran and Oman are preparing to announce a 60-day agreement on shipping through Hormuz as soon as Wednesday, Axios reported, citing two regional sources and a U.S. official. Under the proposal, inbound vessels would use a northern lane near Iran, while outbound traffic would travel through Omani waters in coordination with the Islamic Republic. Meantime, Yemen’s Houthi militant group said it would attack Saudi oil tankers in the northern Red Sea, a potential fresh escalation in its attacks on shipping. Houthi military spokesperson Yahya Saree said the move was a result of the kingdom diverting ships away from the Bab el-Mandeb chokepoint to the south of the waterway.
The National Weather Service today said a frontal boundary will trigger showers and thunderstorms from the upper Great Lakes, middle Mississippi Valley and central Plains today, with an area of heavy rain. There is a slight risk (level 2/4) of excessive rainfall from southwestern Lake Michigan into the middle Mississippi Valley and central Plains from this morning into Thursday morning. Meanwhile, monsoonal moisture will produce showers and thunderstorms with moderate to heavy rain over parts of the Southwest during the late afternoon into the late evening through Friday. A third front moving southward out of central Canada will move into parts of the upper Midwest and Northern Plains Thursday into Friday. The boundary will trigger scattered showers and thunderstorms over parts of the upper Midwest Thursday into Friday. In the Northwest, ongoing fires will lead to persistent smoke in the region, from Washington/Oregon eastward and also over the Great Basin with separate fires. Air quality alerts are in effect for much of the region.
The average ethanol content of gasoline sold in the U.S. hit a record 11.29% in May as petroleum prices reached their highest monthly averages of the Iran War, Renewable Fuels Association Chief Economist Scott Richman said Tuesday, citing Energy Information Administration figures. For the 12 months through May, the ethanol blend rate in U.S. gasoline rose to 10.57%, the highest annual share ever. Ethanol-blending economics drove the increase, Richman said in a post.
CORN: December corn futures are trading near Monday’s lows. Support comes in at $4.58 1/4, which has capped the downside so far this session. Additional support comes in at $4.50. Resistance is layered from $4.65 3/4 to $4.69.
SOYBEANS: November soybean futures continue to push lower. Support stands at the 100-day moving average at $11.67 1/2, which capped the downside overnight. Resistance comes in at the psychological $11.75 mark then $11.87 1/2, the 40-day moving average, on a bounce.
WHEAT: September SRW wheat futures bounced from recent lows. The Aug. 3 low remains intact at $6.32 and remains key support, which is reinforced by the 100-day moving average at $6.28 1/4. Resistance comes in at $6.43 1/4 then the psychological $6.50 mark on a bounce.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/lower.
CATTLE: Live cattle and feeder futures are expected to open higher in a continuation of yesterday’s strength. Bulls defended technical support Tuesday and closed prices above key resistance levels, likely to spur additional strength today. Cash track initiated early this week at $235.00, above last week’s average, which should be supportive of higher futures. Choice beef climbed $2.92 to $369.65 Tuesday, extending the recent push higher.
HOGS: Lean hog futures are expected to open with a mostly weaker tone. Futures have been consolidating in an apparent bear flag on the daily bar chart. That would indicate potential additional consolidation before another leg lower. Weakness in the cash market continues to undercut futures. The CME lean hog index is down another 51 cents to $97.17 as of Aug. 3, extending the recent slide. Pork cutout slid $1.08 to $99.83 Tuesday, falling below the $100 mark for the first time in weeks as all cuts posted losses on the day.