Corn futures are mixed at midmorning with old-crop seeing strength and new-crop seeing weakness.
- Corn futures’ spreads continue to see volatile trade as volume has picked up amid the roll this week, which is likely to continue to spur volatility over the coming week.
- Japan and the U.S. are engaged in high-stakes trade negotiations in Washington, aiming to finalize a broad agreement before the upcoming G7 summit in Canada.
- Rain and planting delays returned to the Tennessee and Ohio river basins over the past couple of days, says World Weather Inc, drawing question to how many late season acres will be planted.
- July corn futures continue to trade sideways near recent lows. Bulls are seeking to hold prices above yesterday’s for-the-move low at $4.33 1/4, while the 10-day moving average continues to serve up stiff support tat $4.44. Strength above that mark would have bulls targeting this week’s high at $4.46.
Soybeans are 1 to 6 cents higher this morning. Soymeal is around $2.0 lower while soyoil futures are around 85 points higher.
- Soybeans are seeing relative strength with old-crop futures leading the way higher.
- The U.S. and China have agreed to hold additional trade discussions following a lengthy and reportedly “very positive” phone call between President Donald Trump and Chinese President Xi Jinping on Thursday.
- The Trump administration is facing mounting lobbying pressure as additional meetings have been scheduled for the EPA’s “Renewable Fuel Standard (RFS) Program: Set 2” proposed rule, now under formal review at the Office of Management and Budget (OMB).
- Regular bouts of rain in the next couple weeks should keep soil moisture ample throughout most of the Midwest, says World Weather Inc.
- July soybeans are working higher for the fourth consecutive session. Stiff resistance stands at $10.62 with additional resistance at $10.64, the 200-day moving average. Support comes in at the psychological $10.50 mark on a reversal lower, which is bolstered by converged moving average support at $10.48.
SRW and HRS futures are around 2 cents lower while HRW futures are 4 to 5 cents lower.
- SRW wheat futures have traded on either side of unchanged but have struggled to garner much momentum either direction.
- Ukraine expects its 2025-26 grain exports to fall to between 35 MMT and 40 MMT, depending on harvest volume, its first deputy agriculture minister Taras Vysotskiy told Reuters. He said that grain exports might include about 14 MMT to 15 MMT of wheat.
- French whet conditions continue to slide, dipping for the fourth consecutive week. Conditions fell to 69% “good” to “excellent,” though that remains well above a year ago.
- Too much rain in southeastern HRW production areas continue to lead to concerns of wet weather disease and grain quality declines, with Oklahoma and south-central Kansas seeing the bulk of the negative impact, says World Weather Inc.
- July SRW futures are pivoting around unchanged. Stiff support remains at $5.40, a break below which would challenge the recent technical breakout. Resistance at the $5.50 mark remains stiff, capping the upside over the past two weeks.
Live cattle are mixed while feeders are seeing modest weakness at midsession.
- Cattle futures saw strength early this morning but have since turned lower amid low volume, volatile trade.
- The European Union is open to discussing purchases of more hormone-free beef from the United States.
- The cash cattle market has seen robust gains this week, trading $5.00-plus higher, while feedlots in the northern dressed market are holding out for even higher prices.
- Wholesale beef ended Thursday mixed, though Choice cutout continues to lead strength. Choice cutout is up another $1.69 to $366.85 while Select slid 11 cents to $356.61.
- June live cattle made fresh record highs early in the session. Next resistance stands at $225.00. Bulls are looking to hold support at $223.00 then $220.00 on a reversal lower.
Hog futures are solidly higher in midmorning trade.
- Nearby lean hogs are seeing gains across the board as futures are supported by the strengthening cash market.
- The CME lean hog index is up another 82 cents to $97.57 as of June 4, once again seeing strong gains after strength slowed earlier this week.
- Pork cutout firmed $1.50 to $108.12 on Thursday, led higher by strength in bellies, though all cuts except ribs and hams posted gains on the day.
- July lean hogs made a fresh for-the-move high early in the session. Bulls are looking to toppled resistance at $106.70, the contract high, on continued strength. Support comes in at $106.05 then the psychological $105.00 mark on a turn lower.