Market Snapshot | Soybeans firm into midmorning

Soybeans lead short-covering gains

Pro Farmer's Market Snapshot
Pro Farmer’s Market Snapshot
(Pro Farmer)

Corn is mostly 3 cents higher at midmorning.

  • Corn futures are firmer amid short-covering spurred by a rally in soybeans.
  • APK-Inform raised its forecast for Ukraine’s 2025 grain harvest to 53.2 MMT, up from a previous estimate of 51.2 MMT, after higher-than-expected corn production.
  • USDA reported export inspections of 1,491,962 MT for the week ended Aug. 7, up 207,216 MT from the previous week. Net inspections topped the pre-report range of expectations, which ranged from 1.0 to 1.4 MMT.
  • December corn futures saw modest strength overnight. Resistance stands at $4.08 1/4, the 10-day moving average, then $4.12 1/2 on persistent strength. Support comes in at $4.00 on a reversal lower.

Soybeans are mostly 20 to 22 cents higher, while soymeal is around $4.00 higher. Soyoil is fractionally higher.

  • Soybean futures are notably firmer amid optimism around potential purchases from China.
  • On Sunday in a Truth Social post, President Donald Trump urged China to quadruple its soybean purchases ahead of the Aug. 12 truce deadline. The Shanghai Composite rose 0.34% Monday, while the Shenzhen Component climbed 1.46%, extending last week’s gains as investors awaited news on whether the U.S.-China tariff truce will be extended ahead of the Tuesday deadline.
  • USDA reported export inspections of 518,066 MT during the week ended Aug. 7, down 110,044 MT from the previous week. Net inspections topped the pre-report range of 200,000 to 500,000 MT.
  • China is increasing its exports of soybean oil, with about 127,000 tons exported in the first half of the year, according to customs data.
  • The U.S. expects to largely complete trade negotiations with countries that have yet to secure a deal by the end of October, Nikkei Asia reported, citing an interview with U.S. Treasury Secretary Scott Bessent.
  • Malaysia’s palm oil stocks rose for a fifth straight month in July to their highest level in nearly two areas as production outpaced exports, according to data from the industry regulator.
  • November soybean futures surged higher overnight. The 40-day moving average limited gains at $10.14 and will persist as bulls’ initial target. Support comes in at the psychological $10.00 mark then $9.97 1/4, bulls want to defend those support levels on a closing basis.

Wheat futures are mostly unchanged to 4 cents higher.

  • SRW wheat futures are firmer in tandem with corn and soybeans, despite U.S. dollar strength.
  • USDA reported export inspections of 365,486 MT during the week ended Aug. 7, down 324,244 MT. Net inspections were within the pre-report range of 350,000 to 600,000 MT.
  • APK-Inform raised its forecast for Ukraine’s 2025 grain harvest to 53.2 MMT, up from a previous estimate of 51.2 MMT.
  • World Weather Inc. notes Canada’s Prairies’ subsoil moisture is still low, but sufficient rain has fallen to improve crop development in many, but not all areas.
  • December SRW futures saw modest profit-taking overnight. Bulls are looking to overcome stiff resistance at the 10-day moving average at $5.39 1/2. Support comes in at $5.28 1/2 on renewed selling pressure.

Live cattle are mixed, while feeders are lower at midsession.

  • Nearby live cattle are posting modest corrective gains in the wake of Friday’s selloff.
  • USDA Secretary Brooke Rollins said Saturday she will have a major announcement this week in the battle against New World Screwworm, the flesh-eating pest that has been moving up from Central America through Mexico, forcing the periodic suspension of U.S. livestock imports.
  • Choice cutout fell a dime on Friday to $378.84, while Select rose $1.34 to $355.09. Movement totaled 103 loads for the day.
  • August live cattle are trading within Friday’s lower range, with initial resistance at $234.69, while support lies at $230.13, which is backed by the 20-day moving average.

Hog futures are mixed at midmorning.

  • Nearby lean hogs are modestly higher as cash and wholesale fundamentals continue to prove supportive.
  • The latest CME lean hog index is up 50 cents to $110.10 as of Aug. 6, reversing from recent weakness.
  • Pork cutout rose $1.08 on Friday to $117.41 amid gains in all cuts aside from primal hams. Movement totaled 343.0 loads.
  • August lean hogs are facing resistance at $109.43, while support is layered at $109.17 and $108.93.