GRAIN CALLS
Corn: 2 to 5 cents higher.
Soybeans: Steady to 3 cents lower.
Wheat: Winter wheat 11 to 14 cents higher; HRS 8 to 10 cents higher.
GENERAL COMMENTS: Wheat futures led strength overnight with corn following to the upside. Soybeans saw relative weakness. Each saw an uptick in buying interest going into the break. Outside markets are mixed this morning with precious metals seeing robust strength. Front-month crude oil futures are solidly higher as well, while the U.S. dollar index is around 500 points lower.
Most of the Midwest and central two-thirds of the Plains will receive rains this week, with amounts of one to three inches common, according to World Weather Inc. The Delta and Southeast will be drier this week. World Weather anticipates some northward shifting of the greatest rainfall in the second week of June, reducing the rain frequency and significance in the Delta and Tennessee River Basin as well as a part of the Southern Plains.
President Donald Trump announced the U.S. will double its steel import tariff from 25% to 50% as of Wednesday. The move is designed to further shield the domestic steel industry as the U.S. finalizes a high-profile deal between Japanese-owned Nippon Steel and Pittsburgh-based U.S. Steel. The European Commission swiftly condemned the decision.
Trump on Friday accused China of violating an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals. China said Trump’s accusations were “groundless,” and promised to take forceful measures to safeguard its interests. In a sharp statement issued Monday, China’s ministry of commerce condemned new U.S. restrictions — ranging from AI chip and software export controls to student visa revocations — as a breach of recent agreements. The flare-up comes amid uncertainty over a leadership-level call Trump says he hopes to hold with Chinese President Xi Jinping.
AgRural raised its Brazilian corn production forecast by 3.7 MMT to 128.5 MMT, drive by higher safrinha yields in most states, especially Mato Grosso. AgRural increased its soybean production estimate by 1.3 MMT to 169 MMT after as increases in other states offset issues in Rio Grande do Sul. USDA estimates Brazilian corn production at 130 MMT and soy production at 169 MMT.
CORN: July corn futures followed wheat higher overnight. Initial resistance at the psychological $4.50 mark is reinforced by resistance at $4.54 3/4. Support comes in at Friday’s close of $4.44 then the May 13 low of $4.36 1/2 on a reversal lower.
SOYBEANS: July soybean futures continue to see relative weakness. Support at $10.36 1/2 limited the downside overnight and is reinforced by support at $10.25. Initial resistance stands at $10.45 3/4 with continued strength looking to topple resistance at $10.50.
WHEAT: July SRW futures led strength overnight. Prices are in the upper end of the recent range and are poised to break out on the daily bar chart. Resistance stands at $5.49 1/4 then $5.57 1/2 on continued strength. Bulls are seeking to hold support at $5.41 1/4, the 40-day moving average, then $5.36 on a reversal lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live cattle and feeders are expected to open higher amid steep discounts to the cash market. June futures are well below the cash market after trading sideways since mid-May despite ongoing cash strength. Last week’s cash cattle average is poised to set another record, though the official tally won’t be known until later this morning. Wholesale beef continues to strengthen as well, with Choice cutout firming another quarter to $366.34, while Select surged $3.01 to $356.65, narrowing the Choice/Select spread to $9.69.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of recent strength. June futures closed at the highest level in over three months on Friday but remained just below the April high, which will serve as initial resistance. Futures have been supported by building strength in the CME lean hog index, which is up another 71 cents to $94.84 as of May 29, the largest daily gain since the index’s low in mid-April. Pork cutout firmed another $2.60 to $107.22 Friday, the highest mark since August 2023.