GRAIN CALLS
Corn: 5 to 7 cents lower.
Soybeans: 5 to 7 cents higher.
Wheat: SRW 7 to 9 cents lower; HRW 6 to 8 cents lower; HRS 3 to 5 cents lower.
GENERAL COMMENTS: Grains saw relative weakness overnight while soybeans were supported by robust followthrough gains in soyoil following Friday’s limit higher close. The marketplace remains a touch on edge as tensions in the Middle East continue to run hot. Front-month crude oil futures are down around a buck but continue to trade at multi-month highs. The dollar index is currently around 250 points lower and near recent lows.
Most U.S. crop areas will receive rains over the next two weeks, maintaining mostly favorable conditions for crop development. World Weather Inc. says that does not mean soil moisture will be perfect for all production areas, with dryness a concern in part of the Northern Plains and some areas of the Corn Belt. The Southern Plains should see less frequent rainfall over the next two weeks, resulting in better wheat maturation and harvest conditions.
The G7 summit hosted by Canada comes at a time of deep division over foreign policy and trade, especially with the U.S. under President Trump’s aggressive tariff policies. Canadian Prime Minister Mark Carney will hold a crucial one-on-one meeting this morning as the G7 Summit begins in Kananaskis, Alberta. Carney’s stated goals for the summit include advancing peace and security, fortifying supply chains for critical minerals, and supporting job growth. However, the agenda is likely to be overshadowed by contentious issues such as U.S. tariffs, the ongoing Middle East crisis after Israeli strikes on Iran, and the war in Ukraine. Carney has decided not to pursue a formal G7 communique, aiming instead to minimize discord and prioritize practical outcomes. The summit will also address global security and climate challenges, all while Trump pushes for Russia’s readmittance to the G7 — against opposition from other leaders.
Israel and Iran continued to exchange missile strikes through the weekend in an escalation of tensions in the Middle East. Planned nuclear talks between the U.S. and Iran were canceled following the Israeli offensive, with Iran’s foreign minister declaring negotiations “unjustifiable” under fire. Trump said Sunday that while a peace deal between Israel and Iran remains possible, both sides may need to “fight it out” before reaching an agreement to end their escalating conflict. Trump confirmed the U.S. is not currently involved in Israel’s military operations, though he noted in an ABC News interview that it is “possible” the U.S. could get involved.
CORN: July corn futures gave up most of Friday’s gains overnight. Additional selling finds support at $4.37, which is firmly backed by support at $4.33 1/2. Initial resistance now stands at $4.40 1/2, with additional strength eyeing resistance at $4.44 1/2.
SOYBEANS: July soybean futures were supported by sharp gains in soyoil overnight. Bulls are looking to topple resistance at $10.75 before challenging resistance at $10.80. Support stands at the 200-day moving average at $10.64, which has been an important level the past month. Additional selling would find support at $10.57 1/4.
WHEAT: July SRW futures led overnight weakness. Support comes in at $5.34 1/4 on continued weakness, with added support from $5.28 1/2. Initial resistance now stands at $5.40 1/2 and is reinforced by Friday’s high of $5.44 3/4.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Higher.
CATTLE: Live cattle and feeders are expected to open with a mostly firmer tone as futures are trading at a steep discount to the cash market. While heavy selling was featured across the cattle complex Friday, the cash market remains strong and is poised to post another record weekly cash cattle average. The cattle market as a whole has seen several sharp breaks, similar to the one last week, over the course of the historic bull run over the past several months. How prices react early this week will be key. Wholesale beef continues to march higher, as Choice rose another $1.16 to $377.88 Friday, while Select climbed 43 cents to $363.50.
HOGS: Lean hog futures are expected to open higher in a continuation of recent strength. July futures continue to march higher on the daily bar chart and look poised to challenge last week’s contract high. Some additional consolidation is possible given overbought futures, but ongoing strength in cash fundamentals is difficult to ignore. The CME lean hog index continues to post strong daily gains, as it is up another $1.05 to $102.81 as of June 12. Pork cutout continues to charge higher seasonally as well. Cutout jumped $3.56 to $118.06 Friday, led by strength in hams and bellies.