GRAIN CALLS
Corn: Steady to 2 cents higher.
Soybeans: 4 to 6 cents lower.
Wheat: 4 to 6 cents lower.
GENERAL COMMENTS: Wheat continues to lead to the downside, an anchor for both corn and soybeans. Corn managed to eek out modest gains overnight, recovering a bit from yesterday’s selling pressure. Outside markets are unsupportive this morning as front0month crude oil futures are modestly lower while the U.S. dollar index is around 220 points higher.
World Weather Inc. said Wednesday afternoon in a special report that “evidence continues to build over the potential for this week’s frost and freezes in the north-central United States and neighboring areas of Canada to be greater than advertised. There is a growing potential for more broad-based frost to occur from Saskatchewan, eastern Alberta and Manitoba, Canada into the northern U.S. Plains and upper Midwest. Predicted temperatures (from some models) may not be cold enough, and the impact on crops may end up being greater than expected.” There has been a trend in computer forecast model runs this week for the cold air advertised for late this week and into the weekend to be more broad-based and intense than that advertised earlier this week and especially relative to that of last week.
President Trump has asked the Supreme Court to uphold his global tariffs, seeking review in a case that could affect trade and give him broad new leverage over the world economy. A defeat for Trump would cut the current average U.S. effective tariff rate by at least half and could force the U.S. to refund tens of billions of dollars, according to Bloomberg Economics. The administration has asked the court to take up the case by September 10 and to put it on a highly expedited schedule with arguments in early November. This follows a federal appeals court ruling that said Trump can’t impose wide-scale import taxes by invoking a 1977 law designed to address national emergencies.
The jobs from the Labor Department report is arguably one of the most important U.S. data points of the month. Analysts expect Friday’s employment report to extend the weakest stretch of U.S. jobs growth since the pandemic, likely locking in a Federal Reserve interest-rate cut. The key nonfarm payrolls number is seen up 75,000 in August, which would mark a fourth straight month of jobs growth below 100,000. The unemployment rate is seen rising to 4.3%, which would be the highest level since 2021.
CORN: December corn bounced overnight. Bulls are seeking to challenge yesterday’s high of $4.24 1/4 on a bounce. Support comes in at $4.15 on resurgent selling pressure.
SOYBEANS: November soybeans saw additional selling overnight. Support stemmed from $10.25 while additional selling finds support at $10.20. Resistance stands at $10.29 then $10.35 on a bounce.
WHEAT: December SRW wheat hit a fresh contract low overnight. Tentative support lies at $5.15 while additional selling eyes $5.10. Resistance stands at $5.20 on a bounce.
LIVESTOCK CALLS
CATTLE: Choppy/higher.
HOGS: Choppy/lower.
CATTLE: Cattle futures are expected to open with a mostly firmer tone as cash fundamentals continue to be supportive. Additional consolidation is possible following yesterday’s selling pressure, but the 10-day moving average continues to serve up solid support. Wholesale beef rebounded following recent weakness on Wednesday. Choice cutout climbed $2.59 to $416.01 while Select rose $1.56 to $387.73.
HOGS: Lean hog futures are expected to open with a mostly weaker tone in a continuation of yesterday’s selling pressure. Prices saw steep reversals following a string of solid gains. Technical buying and bargain hunting could limit losses after the open. The CME lean hog index is steady at $105.92 as of Sept. 2, which could prove supportive for futures as well. Pork cutout rose 61 cents to $114.73 on Wednesday, led by gains in bellies and hams.