GRAIN CALLS
Corn: 1 to 3 cents lower.
Soybeans: 2 to 4 cents higher.
Wheat: 5 to 8 cents lower.
GENERAL COMMENTS: Grains fell after a higher open overnight, likely due to progress being made on an Iran deal. The agreement signed last week appears to be shaky as Israel continues attacks in Lebanon. Soybeans saw relative strength and continue to favor the upside. Front-month crude oil futures are lower this morning while the U.S. dollar index is trading near unchanged.
The U.S. and Iran on Sunday began talks in Switzerland on a peace deal to settle the issue of the Iran’s nuclear program and permanently reopen the Strait of Hormuz. Iran overnight said there had been “major progress” in all-night discussions with the U.S. as the warring sides try to reach a peace deal within two months. Iranian Foreign Minister Abbas Araghchi said the mediators, Qatar and Pakistan, had managed to ease some of the tensions over Lebanon, and Iran was beginning to see financial benefits from last week’s memorandum of understanding. Negotiations are set to continue throughout this week. Bloomberg reported plenty of obstacles remain, however, including Israel’s war in Lebanon against Hezbollah, an Iran-backed militant group. At one stage on Sunday, Iran said it would suspend talks — but never actually did — after President Trump threatened military action against the Islamic Republic over its funding of proxy groups in the Middle East.
USDA last Thursday afternoon reported U.S. cattle and calves on feed for the slaughter market for feedlots with capacity of 1,000 or more head totaled 11.7 million head on June 1. The inventory was 2 percent above June 1, 2025. Placements in feedlots during May totaled 1.70 million head, 10 percent below 2025. Marketings were the second lowest for May since the series began in 1996. Other disappearance totaled 55,000 head during May, 11 percent below 2025. Read more here.
“USDA’s updated cost of production estimates raised fertilizer expense projections for every major field crop for the 2026 growing season, but see relief in fuel and fertilizer prices in 2027, according to Farm Bureau’s take on the latest USDA commodity cost and returns report. “Higher production costs in 2027 are expected to be driven by higher prices for seed, chemicals, repairs, labor, machinery, and cash rents. Preliminary 2027 projections suggest fertilizer costs will remain elevated despite expectations for improved global supply chains. With farmers continuing to face tight margins, the persistence of high input costs reinforces the need for congressional action, including authorizing year-round E15, providing additional market assistance and passing a modernized five-year farm bill,” said Farm Bureau, adding the latest USDA commodity cost and returns report provides the first comprehensive look at how recent disruptions in global energy and fertilizer markets are filtering down to the farm level.
CORN: July corn futures continue to fall after failing to overcome resistance at the 10-day moving average, currently at $4.19 3/4, late last week. That level remains key resistance. Support comes in at $4.14 then $4.11 3/4 on persistent selling.
SOYBEANS: July soybean futures favored the upside overnight. Prices have found resistance from $11.28 to $11.35 the past few sessions, a key resistance zone. Support comes in at $11.25 then $11.13 3/4 on a push lower.
WHEAT: July SRW wheat continue to see profit-taking. Bulls are looking to overcome resistance at $6.04 then the 40-day moving average at $6.10 1/4. Support comes in at $5.98 3/4 then $5.93 3/4 on persistent selling.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open with a mostly firer tone, supported by Friday’s Cattle on Feed Report. The report was largely price friendly. Bulls are looking to negate some of the recent losses, which can be chalked up to technical selling. Cash trade remained slow into Friday, with trade last week likely being rather small. Choice beef rose 45 cents to $394.37 Friday, though movement was slow as 80 loads.
HOGS: Hog futures are expected to open with a mostly firmer tone, supported by corrective buying. Prices bounced Thursday from fresh lows. The futures market continues to price in relative weakness in the cash market over the next couple months. The latest CME lean hog index quote is up a penny to $92.44. Meanwhile, pork cutout surged $3.06 Friday amid gains in all cuts, while movement surged to 373.0 loads.