Corn futures are mostly unchanged to a penny higher at midmorning.
- Corn futures are firmer in modest corrective trade, though technical hurdles continue to curb earnest buyer interest.
- USDA rated the corn crop as 68% good to excellent as of Sunday, up one percentage point from the previous week. Most of the improvements were found across central areas of the Corn Belt. Emergence was estimated at 94%.
- U.S. and Mexican negotiators meet in Washington on Tuesday for a second round of talks focused on agriculture and energy in an effort to revamp the North American trade agreement. Agricultural groups are urging President Trump to extend the U.S.-Mexico-Canada Agreement on trade for another 16 years with duty-free farm productions, strengthened provisions for genetically modified corn and ethanol access in Mexico and improved access to Canada’s largely closed dairy market, according to Reuters.
- Crop consultant Dr. Michael Cordonnier increased his U.S. corn yield by 1.0 bushel to 182.0 bushels per acre. He notes the corn harvested acreage figure will be adjusted, if necessary, once the June Acreage Report is released on June 30th. He currently estimates production at 15.652 billion bushels.
- Dr. Cordonnier raised his Brazilian corn production estimate by 1 MMT to 139 MMT, with “off season” rain last week helping some of the later planted safrinha crop. He maintained his Argentine corn production estimate of 63 MMT.
July corn futures are facing resistance at the 10-day moving average of $4.18 ½, while support lies at this week’s low of $4.06 1/4.
Soybeans are 6 to 9 cents higher, while soymeal is around $1.70 higher, and soyoil is around 160 points lower.
- Soybean futures are firmer but have backed off earlier gains following rumors of China pricing U.S. soybeans.
- USDA rated the soybean crop as 66% good to excellent as of Sunday, up one percentage point from the previous week. Plantings were estimated to be 95% complete and emergence stood at 88%.
- Dr. Michael Cordonnier raised his U.S. soybean yield estimate by 0.5 bushel to 52.5 bushels per acre. He currently estimates production at 4.467 billion bushels.
- Dr. Cordonnier maintained his Argentine soybean production estimate of 49 MMT, and holds a neutral bias going forward. Harvest was estimated to be 95.2% complete as of late last week.
- Malaysian palm oil futures climbed more than 2% on Tuesday, ahead of a public holiday, as Indonesia’s looming B50 biodiesel program boosted prices.
- July soybeans are facing resistance at the 200-day moving average, trading around $11.38, while support lies at $11.13 3/4, then at this week’s low of $11.02 1/2.
SRW wheat is around 4 to 7 cents higher, while HRW wheat is mostly a penny to 4 cents lower. HRS futures are unchanged to 2 cents higher.
- SRW wheat futures are extending short-covering gains after reaching a fresh low on Monday.
- USDA rated the U.S. winter wheat crop as 27% good to excellent, up two percentage points from the previous week. Still, that rating was the lowest for that specific week since 1989, according to USDA data. Harvest was estimated to be 25% complete as of Sunday, ahead of average by 5 percentage points.
- USDA rated the spring wheat crop as 55% good to excellent as of Sunday, up three percentage points from a week earlier.
- July SRW futures have tested resistance at the 100-day moving average, trading at $6.01 1/4, while support lies at the 10-day moving average of $5.86 3/4.
Live cattle and feeders are higher at midmorning.
- Cattle futures have notched a near one-month high, with support from extended gains in Feeders are New World screwworm continues to grab headlines.
- The USDA Animal and Plant Health and Inspection Service (APHIS) on its NWS website is still reporting 12 total New World screwworm detected cases, in Texas and New Mexico.
- Boxed beef prices improved on Monday, with Choice up $3.12 to $395.05 while Select rose $3.69 to $376.41. Movement was light, however, at only 68 loads.
- August live cattle have moved above resistance at the 40-day moving average, with resistance now standing at $246.72. Initial support lies at $242.53, which is backed by the 20- and 10-day moving averages.
Hog futures are firmer at midday.
- Lean hog futures are modestly firmer in consolidative trade despite a continued decline in cash fundamentals.
- The CME lean hog index is down another 66 cents to $92.09 as of June 12.
- The pork cutout value fell 27 cents to $97.12 on Monday, led by a more than $9 drop in primal butts. Movement totaled 308.6 loads.
- August lean hogs continue to face resistance at the 10-day moving average of $96.66, while support is layered at $95.35, $94.93 and at the June 10 low of $93.975.