GRAIN CALLS
Corn: 1 to 3 cents higher.
Soybeans: 4 to 7 cents higher.
Wheat: 7 to 10 cents higher.
GENERAL COMMENTS: Wheat futures pushed to a 22-month high overnight as prices continue to surge higher. Corn followed wheat higher. Soybeans reversed some of Tuesday’s losses, a positive sign, as generally when prices have tested the upper end of the ongoing sideways range, multi-day selling ensued. Outside markets are mixed this morning as front-month crude oil futures continue to work higher while the U.S. dollar index is around 100 points higher.
Latest on the war in the Middle East:
--U.S. signals no letup of naval blockade as it aims to squeeze Iran
--“Iran can’t get their act together,” says Trump in social media post today
--Nymex WTI crude oil futures prices back above $100 a barrel
--Trump on Tuesday said Iran wants Hormuz open amid efforts to end war
--U.S. warns of sanctions risks for Chinese refiners of Iranian oil
--California jet fuel woes deepen as Asia flows hit decade low
-- Bond traders ramp up wagers hedging for 5% 10-year U.S. Treasury yields as oil surges
--Japan confirms Hormuz transit as Iran talks continue, prime minister says
--European airports warn of tough outlook as war disrupts flights
“The extended closure of the Strait of Hormuz and extreme weather have jolted the price index for farm commodities to a two-year high as fertilizer headaches and the prospect of smaller harvests drive food inflation risks,” said Bloomberg. The Bloomberg Agriculture Spot Index, which tracks 10 of the world’s top-selling crop products, has climbed for a third straight month to the highest level since November 2023. “That’s a pronounced shift from before the war, when most crop prices were weighed down by abundant inventory and bumper harvests. Now, farmers from Asia to Australia and the U.S. are grappling with converging challenges posed by the Iran war and drought, pressuring the prices of staple food products from bread to pasta and cooking oil. The war has changed that balance materially, primarily through energy, fertilizer, and logistics channels.”
CORN: July corn futures continue to extend higher. Bulls are looking to overcome resistance at $4.80 on continued strength. Support lies at $4.75 then the $4.70 mark on a reversal lower.
SOYBEANS: July soybeans rebounded from Tuesday’s loss. Stiff resistance persists at the psychological $12.00 mark. Bulls are seeking to hold support at the 10-day moving average at $11.85 1/2 on a turn lower.
WHEAT: July SRW futures continue to surge higher. Bulls are eyeing resistance at $6.75 on continued strength. Support stands at the March 9 high of $6.49 3/4 on a corrective pullback.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/higher.
CATTLE: Live cattle futures are expected to open with a mostly firmer tone, though profit-taking could limit gains after the open. Cattle futures scored record highs on Tuesday in a continuation of the recent explosive push higher. For futures to work much higher, cash cattle trade will likely need to show some strength. Choice beef slid 66 cents to $388.90 Tuesday, further pressuring packer margins.
HOGS: Lean hogs are expected to open with a mostly firmer tone amid technical buying, though persistent weakness in the cash market could spur additional selling pressure. The CME lean hog index is down another 7 cents to $91.18 as of April 27, extending the recent string of losses. Pork cutout fell 97 cents to $98.26 Tuesday, led by losses in hams and ribs, though movement was firm at 340.0 loads.