GRAIN CALLS
Corn: 4 to 6 cents higher.
Soybeans: 1 to 3 cents higher.
Wheat: 20 to 22 cents higher.
GENERAL COMMENTS: Wheat led strength overnight as tensions in the Black Sea continue to rise. Corn followed wheat higher while soybeans saw action on both sides of unchanged. Front-month crude oil futures found resistance at $80 and are basing below that mark while the U.S. dollar index is down around 50 points this morning.
Producer prices fell 0.3% in June, sharply below a 0.6% gain in May and below forecasts. That marked the first decline in PPI since August 2025. Falling gas prices led PPI lower. Year-over-year, PPI increased 5.5%, well below 6% in May and below forecasts of 6.2%. Core PPI, which excludes food and energy, rose 0.2%, below forecasts of 0.4%. Year-over-year, core PPI came in at 4.7%, well below expectations of 5.2%. Further pressure on inflation has reduced odds of a rate hike in the near term.
The National Weather Service today said an unusually strong upper-level high has become nearly stationary over the northern-tier states while building southeast toward the East Coast. This weather pattern will prolong the heat and humidity across the Northern Plains to the Great Lakes, where high temperatures will remain in the 90s to lower 100s for the next few days. Extreme heat warnings or advisories remain in effect across portions of those regions. As the upper high extends across the northern tier, a slow-moving weather regime has already set up across the southern-tier states to produce repeated rounds of showers and thunderstorms. Near the western end of that front, a significant heavy rainfall event is forecast to linger across the Texas hill country over the next three days.
Ukrainian forces hit multiple Russian vessels in the Black Sea Wednesday as Kyiv expands the scope of its naval attacks against Moscow. “The first round of the naval battle is over” after Ukraine hit more than 100 Russia-linked ships in the Sea of Azov in recent days, drone unit commander Robert Brovdi said in a statement on Telegram and as reported by Bloomberg. “Now, the Black Sea.” On Wednesday, Ukraine attacked 17 oil tankers, two gas carriers and one tug boat there, Brovdi said, adding that he’ll provide an official report and video evidence later. Following attacks on Russian vessels in the Sea of Azov last week, Moscow suspended shipping through the Don-Azov Channel, which links the sea with the Don River, Reuters reported last Friday. It also closed the Kerch Strait, which connects the Sea of Azov and the Black Sea, according to the news service. Meanwhile, Russia has also been attacking Ukraine’s Black Sea assets. Earlier Wednesday, the Defense Ministry in Moscow said it struck the ports of Odesa, Chornomorsk and Dnipro-Bugsky overnight, damaging four vessels delivering cargo to Ukraine’s armed forces.
CORN: December corn futures bounced off support overnight. Bulls are eyeing resistance at $4.66 then Monday’s high of $4.69 1/2 on continued strength. Support comes in at $4.57 3/4 on a reversal lower.
SOYBEANS: November soybean futures continue to consolidate. Bulls are eyeing resistance at $12.00 on a bounce while support comes in at $11.85 then $11.82 1/4 on a turn lower.
WHEAT: September wheat futures surged to fresh highs overnight. Bulls are eyeing resistance at $6.70 then $6.75 on persistent strength. Support comes in at $6.53 on profit-taking.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live cattle and feeder futures are expected to open with a mostly firmer tone, supported by technical buying. August fats tagged 200-day moving average support on Tuesday, which could provide some corrective strength, but a continuation of recent selling can’t be ruled out. Cash cattle trade initiated at modestly lower prices than a week ago. Choice beef meanwhile slid $1.66 to $373.95 Tuesday.
HOGS: Lean hog futures are expected to open with a mostly firmer tone in a continuation of the ongoing uptrend. Lean hogs have been grinding higher on the daily bar chart as cash prices have rebounded. The CME lean hog index is up another 76 cents to $93.87 as of July 13. Pork cutout slid 34 cents to $101.21 Tuesday, led lower by losses in bellies and ribs.