GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 3 to 5 cents higher.
Wheat: 2 to 5 cents lower.
GENERAL COMMENTS: Soybeans saw relative strength overnight while grains fell under pressure. Prospects for a deal with Iran continue to weigh on grains. Front-month crude oil futures are trading lower this morning and near recent lows while the U.S. dollar index is trading near steady.
USDA reported daily sales of 192,000 MT of soybeans for delivery to unknown destinations.
The U.S. and Iran have reached a preliminary deal to extend a ceasefire by 60 days and discuss the future of Tehran’s nuclear program, according to a person with knowledge of the matter and as reported by Bloomberg. Vice President J.D. Vance said the U.S. and Iran are “going back and forth on a couple of language points,” including over issues relating to Tehran’s nuclear capabilities, and that Iran appears to be negotiating in good faith. U.S. Treasury Secretary Scott Bessent reiterated President Trump’s three “red lines” — reopening the Strait of Hormuz, Iran surrendering highly enriched uranium and ending its nuclear program — remain in place.
USDA Secretary Brooke Rollins Thursday announced the Great American Cotton Plan, “a comprehensive USDA initiative to strengthen the cotton farm economy, restore domestic textile manufacturing, expand cotton trade opportunities and increase demand for products made with American-grown cotton,” said a USDA press release. “The announcement comes as cotton producers face a fifth consecutive year of negative returns driven by rising input costs, trade distortions, and increasing competition from synthetic materials.” As part of the plan, USDA will elevate the “Plant Not Plastic” initiative to encourage consumers to purchase products made with healthy natural American cotton fibers rather than synthetic plastic-based alternatives.
Export sales for the week ended May 21:
Corn: Net sales of 1.015 MMT for 2025-26, down 52% from the previous week and 30% from the four-week average. Mexico and Colombia led sales. Analysts expected sales of 900,000 MT to 2.0 MMT.
Soybeans: Net sales of 299,900 MT for 2025-26, down 15% from the previous week but up 41% from the four-week average. Mexico led sales, followed by unknown destinations. Analysts expected sales of 150,000 to 400,000 MT.
Wheat: Net reductions of 807,300 MT for 2025-26, the largest weekly cancellation in reporting history. Sales totaled 1.058 MMT for 2026-27. The recent switch in the export sales reporting system may have played a role in the big swing in old-crop and new-crop sales. Sales well below pre-report expectations ranging from 0 to 200,000 MT for 2025-26 but were well above 100,000 to 300,000 MT for 2026-27.
CORN: July corn futures are facing persistent selling. Support comes in at the recent lows at $4.51 1/2 on persistent weakness. Resistance stands at $4.60 1/2 on a bounce.
SOYBEANS: July soybean futures are encountering resistance near the psychological $12.00 mark. Additional strength eyes resistance at $12.13, while support stands at $11.92 3/4 on a turn lower.
WHEAT: July SRW wheat are basing near recent lows. Support comes in at yesterday’s low of $6.18 on persistent selling. Bulls are eyeing resistance at $6.25 then $6.29.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly firmer tone, though yesterday’s selling pressure could spill over into today’s session. Cash cattle trade has been slow to develop so far this week with a few loads trading hands at $256.00. Choice beef slid $2.40 to $392.32 Thursday. Stiff resistance persists at the $400 mark in choice beef, spurring recent weakness. Packer margins remain deep in the red, limiting packers’ willingness to negotiate.
HOGS: Hog futures are expected to open with a mostly weaker tone amid technical selling pressure. Selling efforts returned after a test of 10-day moving average resistance mid-week. As nearby futures continue to trade above the cash market, bears are likely to remain in control until confirmation a cash market low could be in place. The CME lean hog index is up 34 cents to $90.92 as of May 27. Pork cutout rose 76 cents to $99.11 Thursday, led by gains in hams. Both the index and cutout have shown signs of strength recently, if that continues, it would bode well for futures.