Corn is mostly 2 to 3 cents lower.
- Corn futures have extended to fresh contract lows amid continued technical and fund selling, amid stronger-than-expected crop conditions, though the market has come off its earlier lows.
- USDA reported daily corn sales of 571,500 MT to Mexico. Of the total, 502,920 MT is for 2025-26 and 68,580 MT is for 2026-27.
- USDA rated the corn crop 73% “good” to “excellent,” up three percentage points from last week, and 5% “poor” to “very poor.” On the Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfecting), the corn crop improved 3.5 points to 381.4, which is 9.1 points above last year.
- USDA is expected to report corn-for-ethanol use of 447.4 million bu. for May, up 21.6 million bu. (5.1%) from April but down 12.6 million bu. (2.7%) from last year.
- September corn futures posted a contract low at $4.00 1/4, which is backed by the psychological $4.00 level. Initial resistance is at $4.09 1/2.
Soybeans are 1 to 2 cents lower, while soymeal is around $2.00 cents lower. Soyoil is around 50 points higher.
- Soybeans have edged up from the for-the-move low carved earlier.
- USDA rated the soybean crop as 66% “good” to “excellent,” unchanged from last week, while 7% was rated “poor” to “very poor.” On our CCI, the soybean crop slipped 0.9 point to 361.8 and is 1.1 points below last year.
- USDA is expected to report soy crush totaled 204.9 million bu. in May, based on a Bloomberg survey. That would be up 2.5 million bu. (1.2%) from April and 13.3 million bu. (6.9%) from year-ago.
- August soybean futures have edged to the lowest level since April 10, with initial support now at $10.11 1/2. Initial resistance is at $10.32 1/2 and is backed by the 100-, 200-, 10-, 20- and 40-day moving averages.
SRW wheat futures are 3 to 6 cents higher, while HRW futures are 1 to 2 cents higher. HRS wheat is around a nickel higher.
- SRW wheat futures are firmer amid support from a weaker U.S. dollar, though technical resistance is curbing extended short-covering efforts.
- USDA rated the spring wheat as 53% “good” o “excellent” and 14% “poor” to “very poor.” On our CCI, the spring wheat crop improved 1.1 points to 355.4, which is still 26.9 points below last year.
- USDA reported the winter wheat crop was 49% “good” to “excellent,” with harvest 37% complete, which continues to trail the five-year average of 42%.
- Ukraine exported 40.6 MMT of grain in 2024-25, down 10.5 MMT (20.5%) from the previous year.
- December SRW futures continue to face pressure from the 40-, 100- and 10-day moving averages, layered from $5.73 1/4 to $5.79 1/4, while this week’s low of $5.56 3/4 is initial support.
Live cattle are posting strong losses, while feeders are more sharply lower at midsession.
- Cattle futures are facing heavy long liquidation pressure on news USDA will reopen ports of entry from Mexico for cattle, bison and equine imports.
- As early as July 7, the port of entry at Douglas, Arizona, will be reopened to Mexican cattle imports. Reopening of other ports of entry will be phased in through September.
- A $9.40 decline in cash cattle prices the past two weeks and strong wholesale beef prices have flipped beef packer margins from deep in the red to highly positive. Despite the dramatic reversal, cash cattle prices are still expected to trade lower again this week, adding to the pullback from the recent record highs.
- Choice boxed beef fell 93 cents to $395.56 on Monday, while Select rose $1.17 to $384.10. Movement remained light at 95 loads.
- August live cattle fell below the 40-day moving average of $211.26, with support now at the 10-day moving average of $210.75. Meanwhile, the 20-day moving of $213.28 is serving as resistance.
Hog futures are modestly weaker at midmorning.
- Nearby lean hogs gapped lower at the open and are posting modest losses, with pressure from fading cash fundamentals and wholesale volatility.
- The CME lean hog index is down 26 cents to $111.76 as of June 27, the first daily decline since May 9.
- The pork cutout value fell $2.09 to $115.37, led by declines in primal ribs and hams. Movement totaled 344.9 loads.
- July lean hogs gapped lower at the open, with resistance at the 20-day moving average $109.82, while support lies at $109.22.