GRAIN CALLS
Corn: 2 to 4 cents lower.
Soybeans: 5 to 7 cents lower.
Wheat: 3 to 5 cents higher.
GENERAL COMMENTS: Corn and soybeans saw consolidative trade overnight while wheat surged to fresh highs. Some consolidation is healthy for the market as prices have effectively gone straight up. Front-month crude oil futures are modestly higher this morning on corrective strength while the U.S. dollar index is around 45 points higher.
That’s an overnight news headline from Bloomberg that typifies the bullish fervor in the grain futures markets at present. “The conflict has damaged ports and grain terminals, significantly curbing shipments from a top exporting region, with Russia and Ukraine accounting for more than a quarter of global exports. Importers are now scrambling to secure more expensive supplies from further afield, including Australia and Argentina, which would increase costs and push up prices,” said the report. Winter wheat futures hit three-year highs overnight “as concerns grow that the war between Russia and Ukraine could escalate and further disrupt supplies from one of the world’s most important breadbaskets,” said Bloomberg. Russia is now preparing to intensify attacks on Ukraine, including infrastructure targets, after concluding that negotiations for a peace deal have reached a dead end, according to people close to the Kremlin, said the report.
The Trump administration’s top trade negotiator suggested the U.S. ought to consider banning some Canadian goods, injecting another threat into a trade dispute between Washington and Ottawa. “Canada has banned the sale of liquor and spirits. We haven’t banned anything from Canada. You know, they’ve capped the type of autos we can bring in, they’ve banned certain goods and services from procurement in the provinces,” U.S. Trade Representative Jamieson Greer said in an interview with Canadian Broadcasting Corp. on Wednesday, Bloomberg reported.
Export sales for the week ended August 20:
Corn: Net sales of 31,200 MT for 2025-26 – a marketing year low, down 87% from the previous week and 89% from the four-week average. The Netherlands and Japan led sales. Sales were in the middle of expectations ranging from -200,000 to 400,000 MT. New crop sales totaling 1.066 MMT were led by unknown destinations and Mexico. Trade expected sales between 600,000 MT and 1.6 MMT.
Soybeans: Net sales of 73,900 MT for 2025-26, down 13% from the previous week and 40% from the four-week average. Egypt and Indonesia led sales. Sales were in the middle of expectations ranging from -200,000 to 200,000 MT. New crop sales totaled 2.478 MMT, with China and unknown destinations leading purchases. Trade expected sales between 1.5 MMT and 3.0 MMT.
Wheat: Net sales of 402,500 MT for 2026-27, up 2% from the previous week and 31% from the four-week average. Mexico and Japan led sales. Sales were in the middle of expectations ranging from 250,000 to 550,000 MT.
CORN: December corn consolidated overnight. Support comes in at $5.30 then $5.25 on selling pressure, while bulls are looking to topple $5.40 resistance on persistent strength.
SOYBEANS: November soybeans saw a relatively tight range overnight. Resistance stands at yesterdays high of $12.70 then $12.75. Support stands at $12.50 then the 10-day moving average at $12.34 1/2.
WHEAT: December SRW wheat hit a fresh high overnight. That high marks resistance at $7.67 1/2 on continued strength. Support stands at $7.50 then $7.28 1/4.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live and feeder cattle futures could open higher on corrective buying, but a continued slide can’t be ruled out. Bears continue to hold the technical advantage but prices are near the lower end of the recent range. Cash trade has averaged $218.12 so far this week, well below last week’s average. Choice beef fell $3.40 to $385.13 Wednesday, giving up some of the recent gains.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of yesterday’s strength. While the cash market continues to decline seasonally, as the CME lean hog index is down another 23 cents to $92.42 as of Aug. 25, futures are at steep discounts to cash at present. Pork cutout slid another $2.12 to $95.55 Wednesday, led by losses in bellies and picnics.