Old-crop corn is mildly firmer, while new-crop is mostly 2 cents lower.
- Nearby corn is modestly firmer after posting a new contract low in overnight trade.
- USDA reported daily corn sales of 630,000 MT to Mexico. Of the total, 554,400 MT is for delivery during 2025-26 and 75,600 MT during 2026-27.
- USDA rated the corn crop as 70% “good” to “excellent” as of June 22, down two percentage points from last week, while the “poor” to “very poor” rating stood at 6%. On the weighted Pro Farmer Crop Condition Index (CCI; 0 to 550-point scale, with 500 representing perfect) the corn crop declined 1.0 point to 377.9.
- Brazil’s National Energy Policy Council (CNPE), comprised of government ministers who advise fuel policy decisions, will discuss raising the mandated proportion of ethanol in gasoline to 30% from a current 27% at a meeting on Wednesday, two sources told Reuters.
- July corn futures posted a contract low at $4.16 1/4, which is now initial support. Resistance stands at $4.22 1/2.
Soybeans are 6 to 8 cents lower, while soymeal is around $1.00 lower. Soyoil is around 90 points lower.
- Soybeans are extending Monday’s losses amid persisting weakness in soyoil as crude faces notable pressure.
- USDA rated the soybean crop 66% “good” to “excellent,” unchanged from a week ago, and 7% “poor” to “very poor.” On our CCI, the soybean crop declined 1.2 points to 362.7.
- Brazil’s CNPE will also discuss raising the proportion of biodiesel in diesel to 15% from its current 14%, the sources said. In February, CNPE decided to hold the biodiesel blend at 14% amid fears the proposed increase could push up food prices and damage the government’s approval ratings.
- Soybean futures dropped below the 10-day moving average of $10.57 1/4, with support now at $10.51 3/4. Initial resistance stands at $10.80 1/2.
Winter wheat futures are 13 to 15 cents lower, while HRS futures are 5 to 6 cents lower.
- SRW wheat futures are posting losses for the third straight session amid technical selling and global economic uncertainties.
- USDA estimated 54% of the spring wheat crop was in “good” to “excellent” shape, down three percentage points from last week, and 15% “poor” to “very poor.” On our CCI, the spring wheat crop dropped 6.0 points to 354.3.
- USDA reported winter wheat harvest was 19% harvested, nine points behind average.
- Argentina will continue drier than usual for the next couple of weeks with western wheat areas in need of significant rain, according to World Weather Inc.
- July SRW futures have extended below the 10-, 20- and 40-day moving averages, layered from $5.45 1/2 to $5.37, with the next area of support at $5.24 1/4. Initial resistance is at Monday’s close of $5.52 3/4.
Live cattle are firmer, while feeders are mostly higher at midsession.
- Nearby live cattle are correctively firmer as steep discounts to cash continue to limit extended seller interest.
- After nine straight weeks of gains in the cash cattle market, including eight consecutive record highs, prices declined last week. The average cash cattle price of $234.88 fell $4.03 from the previous week and cash sources are expecting additional near-term weakness as packers continue to run historically light slaughters amid negative margins.
- Choice boxed beef fell another 28 cents on Monday to $390.22, while Select surged $6.15, narrowing the Choice/Select spread to $6.15. Movement was light at 88 loads.
- August live cattle are facing resistance at the 20- and 10-day moving averages, trading at $213.05 and $213.60. Initial support lies at the 40-day moving average of $210.61 and is backed by $209.575.
Hog futures are moderately to sharply lower at midmorning.
- Nearby lean hogs are weaker in corrective trade, while strong fundamental and technical support continue to limit near-term weakness.
- The CME lean hog index is up another 77 cents to $109.55 as of June 20.
- Pork cutout rose 64 cents to $122.78 on Monday, fueled by a $5.08 jump in primal bellies and $1.08 rise in hams, offsetting weakness in other cuts.
- July lean hogs found support at $111.70, while initial resistance is at $112.80, which is backed by Monday’s high of $113.70.