GRAIN CALLS
Corn: 3 to 5 cents higher.
Soybeans: 6 to 8 cents higher.
Wheat: Winter wheat 5 to 7 cents higher; HRS steady to 2 cents higher.
GENERAL COMMENTS: Corn, soybeans and wheat each traded higher overnight. Wheat continues to lead strength and is working higher for the fourth consecutive session, while corn and soybeans are reversing Monday’s losses. Outside markets are supportive this morning as front-month crude oil futures continue to work higher while the U.S. dollar index is around 250 points lower.
The National Weather Service today reported that across the mid-section of the country rounds of heavy rain associated with clusters of thunderstorms can be expected today into Wednesday in large sections of the central to northern Plains in response to a mid- to upper-level system pushing out of the northern Rockies. From Wednesday into Thursday, a low-pressure system is forecast to become more consolidated over the north-central U.S. Showers and thunderstorms will increase in coverage today and especially on Wednesday across the central to northern Plains, with these showers and thunderstorms continuing into Thursday as the system will be moving slowly. “These rains will bring relief to areas of western Nebraska and southern South Dakota that are experiencing abnormally dry to moderate drought conditions,” said the NWS. Temperatures across the lower 48 states will be above average temperatures over the next few days in the last full week of summer.
There are signs of progress in the U.S.-China trade talks held in Madrid, Spain. President Trump and Chinese President Xi Jinping are set to speak Friday to finalize some terms, with discussions also covering the divestment of Chinese-owned TikTok. U.S. Treasury Secretary Scott Bessent said the commercial terms for the TikTok deal had already been settled. However, China on Monday criticized a U.S. proposal urging its allies, including the European Union and Group of Seven countries, to impose tariffs of 50% to 100% on Chinese goods in response to Beijing’s purchases of Russian oil. China called the U.S. move “a typical act of unilateral bullying and economic coercion,” China’s commerce ministry said it violated prior consensus between Chinese and U.S. leaders and risked destabilizing global trade and supply chains.
USDA rated the corn crop as 67% good to excellent and 9% poor to very poor, and the soybean crop 63% good to excellent and 11% poor to very poor. Corn and soybean ratings both saw a 1% decrease in good to excellent from last week, and a 1% increase in very poor to poor. On the weighted Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop declined 1.8 points to 371.9. The soybean crop decreased 4.8 points to 359.1. Hot and dry conditions last week were the main driver of crop deterioration.
CORN: December corn saw impressive strength overnight. Resistance stands at $4.30 on continued strength. Support stands at $4.25 on a reversal lower.
SOYBEANS: November soybeans saw resurgent strength overnight. Bulls next objective is closing prices above psychological $10.50 resistance. Prices stayed above key support at $10.39 1/2 yesterday, which remains a key level today.
WHEAT: December SRW wheat are working higher for the fourth consecutive session. Bulls are looking to topple resistance at $5.34, the 40-day moving average on continued strength. Support comes in at the psychological $5.25 mark on a turn lower.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Cattle futures are expected to open higher in a continuation of yesterday’s strength. Prices closed near limit in both fats and feeders in an impressive show of strength as traders shored up discounts to the cash market. Cash cattle averaged $239.33 last week, down from $242.55 the previous week. Wholesale beef ended Monday mixed as Choice cutout fell another $1.51 to $398.53 while Select climbed 36 cents to $378.80.
HOGS: Lean hog futures are expected to open higher in a continuation of recent persistent strength. Recent contra-seasonal strength has supported hog futures the past couple of weeks. The CME lean hog index is steady at $106.14 as of Sept. 12. Pork cutout fell 44 cents to $114.07 on Monday, led by losses in bellies, while movement was strong at 313.7 loads.