GRAIN CALLS
Corn: 1 to 3 cents lower.
Soybeans: 3 to 5 cents lower.
Wheat: 6 to 8 cents lower.
GENERAL COMMENTS: Corn, soybeans and wheat each favored the downside overnight. Wheat led the way lower, giving up most of Monday’s gain, while corn saw relative strength. Still, buying increased in each in the latter part of the session. Front-month crude oil futures are modestly lower again this morning and are over $13 off last week’s high. The U.S. dollar index is around 35 points higher.
Chinese and U.S. officials wrapped up their second day of talks in New York on Monday to discuss artificial intelligence, investment and trade as they sought to advance negotiations ahead of President Xi Jinping’s visit to the U.S. this week. “Talks on Monday focused on delivering on what’s been agreed by the U.S. and Chinese lead negotiators, China’s Vice Finance Minister Liao Min said in brief remarks outside the JPMorgan Chase & Co.’s headquarters in New York, where the meetings took place. Liao didn’t comment when asked about discussions over any possible extension of the trade truce, and no other senior officials from either country were seen at the venue,” said a Bloomberg report. U.S. Treasury Secretary Scott Bessent, China’s top trade negotiator Li Chenggang and Vice Premier He Lifeng held a full day of talks on Sunday, before Xi’s expected Wednesday arrival in the U.S. After the Sunday talks, Li said the meeting was conducted in a “good atmosphere” while Bessent described it as “very successful.” With the trade truce set to expire in November, all eyes are on whether China and the U.S. can agree on an extension and, if an agreement can be reached, how long it will last. Speaking on Bloomberg TV on Monday, U.S. Trade Representative Jamieson Greer said a three to six-month extension is possible, adding that there was still time to talk about the terms.
Japan’s Kyodo News Agency has cited an unnamed senior Iranian official as saying that Tehran has proposed reopening the Strait of Hormuz in seven days if a U.S. blockade is lifted, as the basis for talks with mediating countries at the UN. Iran’s Revolutionary Guard also said it must negotiate if it’s in the national interest to do so. President Trump is set to address the UN General Assembly in New York later today and may meet with his Iranian counterpart, Masoud Pezeshkian, on the sidelines, said a Bloomberg report. However, “there have been multiple efforts to end the war that has roiled energy markets for over six months. So far, all have proved to be fruitless, including an interim peace deal that was in effect for a short period over the summer. Since then, the U.S. has been blockading Iranian ports, limiting vital energy export revenues,” said the report.
Monday’s USDA weekly crop progress reports showed the U.S. corn crop was 17% very poor to poor, 26% fair, and 57% good to excellent. The national level ratings were unchanged from week-ago levels for the second consecutive week. Still, the Pro Farmer Crop Condition Index saw a 1.69 point decline, led by a drop in Nebraska (down 1.29 points) as well as deteriorations in the Corn Belt states of Illinois (down 0.44 points) and Iowa (down 0.17 points). USDA pegged the U.S. soybean crop as 14% very poor to poor, 28% fair, and 58% good to excellent. The very poor to poor category increased by 1% this week, with the fair category falling 1%. The changes saw the CCI drop 2.86 points to 357.55. Condition changes were sporadic geographically, though most states in the Midwest noted minor declines. Ohio served as the main exception to that, increasing 0.49 points from last week. Click here to read more.
CORN: December corn gave up some of Monday’s gain overnight. Resistance from the Sept. 11 report driven high of $5.44 3/4 continues to limit the upside. Support comes in at $5.34 1/2 on continued selling.
SOYBEANS: November soybeans continue to find staunch resistance at $13.25. Strength above that mark targets $13.35 1/4. Support lies at $13.14, the 10-day moving average, on a push lower.
WHEAT: December SRW wheat gave up most of Monday’s gain overnight. Support persists at the 40-day moving average at $7.12 1/2 on continued selling. Bulls are eyeing resistance at $7.27 1/4, the 10-day moving average, which capped strength yesterday.
LIVESTOCK CALLS
CATTLE: Higher.
HOGS: Choppy/higher.
CATTLE: Live and feeder cattle futures are expected to open higher in a continuation of Monday’s strength. Futures gapped higher Monday and didn’t look back, posting impressive gains on the day and negating some of last week’s selling pressure. Cash cattle trade showed a modest week-over-week decline last week, sliding 91 cents to $221.87. Choice beef rose $4.41 to $376.35 Monday though movement was light at just 58 loads.
HOGS: Lean hog futures could open higher in a continuation of Monday’s strength. Prices remain in a downtrend on the daily bar chart but are in the lower end of the range, which could spur profit-taking. The CME lean hog index is down another 60 cents to $83.42 as of Sept. 18, extending the seasonal slide. Pork cutout rose $1.93 to $88.91 Monday, led by gains in bellies and loins.