Market Snapshot | Cattle posting record highs

Soybeans are leading strength in the grain and oilseed complex amid China talks.

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

Corn futures are 2 to 4 cents higher at midmorning.

● Nearby corn futures showed impressive strength overnight but have since pulled back from session highs.

● USDA reported daily sales of 288,000 MT of corn for delivery to Mexico, with 95,100 MT for delivery during 2024-25 and 192,900 MT slated for delivery during 2025-26.

● India is analyzing a U.S. request to ease restrictions around the purchase of genetically modified crops as part of ongoing trade negotiations between the two countries, people aware of the matter told Bloomberg.

● July corn futures are posting corrective gains. Strength stalled near Tuesday’s low of $4.57, which stands as resistance. Bulls are seeking to hold prices above support at $4.50, else a test of yesterday’s for-the-move low of $4.42 1/4 is possible.

Soybeans are 8 to 10 cents higher, soymeal futures are around $2.00 higher and soyoil is around 30 points higher.

● Nearby soybeans are leading strength this morning as prices are in the upper end of the recent range.

● USDA reported daily sales of 120,000 MT of soybeans for delivery to Pakistan during the 2025-26 marketing year.

● China imported 6.09 MMT of soybeans in April, up 73.9% from March but down 29.1% from last year and the lowest for the month since 2015, due largely to customs delays in clearing shipments.

● The Trump administration is considering a significant reduction in tariffs on Chinese imports during high-level talks in Geneva this weekend.

● July soybeans are challenging downtrend resistance stemming from the April highs this morning. Stiffer resistance stems from $10.56. Support comes in at the psychological $10.50 mark then the 10-day moving average at $10.47 1/2 on a reversal lower.

Winter wheat futures are 6 to 7 cents lower and on contract lows, while HRS is around 6 cents lower.

● SRW wheat futures are solidly weaker and making fresh contract lows.

● SRW acres will be mostly dry over the coming week with rain returning to the area next weekend, says World Weather Inc. That will allow for beneficial crop development after recent rains.

● The Plains are expected to be dry over the coming week while temperatures are trending warmer. The dry conditions will be welcome in Oklahoma as the wet spring has brought on crop quality concerns.

● Commerce Secretary Howard Lutnick said Thursday that trade agreements with Japan and South Korea will take substantially more time than the newly announced U.S./UK framework deal.

● July SRW futures are trading on contract lows as prices work lower for the third consecutive session. Tentative support comes in at $5.20. Bulls are seeking to reclaim resistance at $5.25 before tackling the 10-day moving average at $5.33 1/4.

Live cattle and feeders are posting modest gains this morning.

● Nearby live cattle made fresh contract highs this morning as strength in cash fundamentals has supported futures.

● After posting modest losses early this week, the cash cattle average has climbed and looks to challenge last week’s record as trade currently averages $219.39, down from a week ago at $220.97.

● Wholesale beef ended Thursday mixed as Choice firmed another $1.74 to $347.89 while Select slipped 80 cents to $333.20.

● Steer carcass weights were unchanged at 946 lbs. from the prior week but 26 lbs. above year-ago and 47 lbs. over the five-year average.

● June live cattle are trading at record highs and above resistance at $215.00. Additional resistance stands at $217.50. Bulls are seeking to hold prices above support at $214.10 on a dip, which is reinforced by support at $212.525.

Hog futures are narrowly mixed at midsession.

● Nearby lean hogs are struggling to break out of recent consolidative trade as daily ranges continue to tighten.

● The CME lean hog index is down 9 cents to $90.07 as of May 7, ending a three-week string of gains.

● Pork cutout ended Thursday $1.04 lower to $94.50, led by losses in ribs and bellies. That puts cutout at the lower end of the recent sideways range.

● China imported 513,000 MT of meat during April, down 35,000 MT (6.4%) from March and 31,000 MT (5.7%) less than last year. Through the first four months of the year, China meat imports totaled 2.16 MMT, down 64,000 MT (2.9%) from the same period last year.

● June lean hogs are struggling to gain traction above resistance at $97.25, while strength above that mark finds resistance at $97.85. Support comes in at yesterday’s low of $96.675 then $95.85 on a break lower.