Corn futures are unchanged to 4 cents lower.
- Corn futures are facing spillover pressure from heavy selling in the wheat market.
- Widespread rains fell from the Southern Plains through the lower Midwest and Delta over the holiday weekend, with more in the forecast through the middle of this week. Saturated soils will keep planting slow in these areas. Central and northern areas of the Corn Belt will also receive some early week rains.
- South American crop consultant Dr. Michael Cordonnier left his Brazilian and Argentine corn crop estimates unchanged at 129 MMT and 50 MMT, respectively.
- USDA reported corn export inspections of 1.4 MMT (55.0 million bu.) during the week ended May 22, down 364,527 MT from the previous week but within the pre-report range of expectations from 1.1 MMT to 1.75 MMT.
- July corn futures are trading between the 20- and 200-day moving averages at $4.55 1/2 and $4.68 1/4.
Soybeans are 2 to 3 cents higher, while soymeal is around $1.00 higher and soyoil is modestly firmer.
- Soybeans have given up much of the overnight strength as pressure stems from the grain complex.
- President Donald Trump announced on Sunday the U.S. will delay proposed 50% tariffs on goods imported from the European Union until July 9 following a phone call with European Commission President Ursula von der Leyen, who requested more time to reach a trade agreement. Trump had previously threatened to impose the steep tariffs starting June 1.
- Recent flooding in northern Buenos Aires resulted in significant crop losses, especially for soybeans. As a result, Cordonnier lowered his Argentine soybean production estimate by 1.5 MMT to 48.5 MMT. Cordonnier kept his Brazilian estimate at 169 MMT.
- USDA reported soybean export inspections of 194,904 MT (7.2 million bu.) for the week ended May 22, down 30,454 MT but within pre-report expectations from 175,000 to 550,000 MT.
- July soybeans are testing the 10-day moving average of $10.61 1/4, though firmer support lies at the 20-day moving average, currently trading at $10.55 1/2. Initial resistance remains at $10.70 1/2.
Wheat futures are 9 to 14 cents lower.
- Wheat futures are weaker for the third straight session, with a firmer U.S. dollar and improving weather conditions in China easing production concerns.
- Rainfall through next Tuesday is expected to ease drought conditions in key wheat-growing provinces like Henan and Shaanxi, according to China’s National Meteorological Center. However, World Weather says weather models have mostly removed rain chances for the North China Plain and Yellow River Basin.
- Russia’s Southern Region will gill experience net drying this week, along with warmer temps, according to World Weather Inc. Partial relief is possible as showers evolve next week along with some cooling.
- USDA reported wheat export inspections of 561,980 MT (20.6 million bu.) during the week ended May 22, up 130, 646 MT, topping pre-report expectations from 300,000 to 500,000 MT.
- July SRW futures have found support $5.27 3/4, while the 40-day moving average of $5.41 3/4 stands as initial resistance.
Live cattle and feeders are sharply lower at midmorning.
- Nearby live cattle are posting hefty losses following a firmer open.
- USDA estimated there were 11.376 million head of cattle in large feedlots (1,000-plus head) as of May 1, down 178,000 head (1.5%) from year-ago. April placements declined 2.6%, while marketings dropped 2.5% in a neutral report.
- Wholesale beef values firmed on Friday, with Choice up 58 cents to $361.44, while Select rose $2.37 to $351.32. Movement was light at 71 loads.
- USDA estimated beef stocks totaled 418.1 million lbs., down 7.0 million lbs. from March, which was less than the five-year average decline of 16.5 million lbs. during the month. Still, beef inventories declined 8.2 million lbs. (1.9%) from last year and 52.1 million lbs. (11.1%) from the five-year average.
- June live cattle continue to face resistance around $216.24, while support lies ta $214.43, which is backed by the 10- and 20-day moving averages.
Hog futures are modestly lower at midsession.
- Nearby lean hogs are weaker amid technical pressure despite firming cash and wholesale fundamentals.
- The CME lean hog index is up another 19 cents to $92.94 as of May 22.
- The pork cutout value rose $1.19 to $101.46 on Friday, while movement totaled 327.0 loads.
- Pork stocks totaled 455.8 million lbs., up 46.3 million lbs. from March. That was more than double the five-year average increase of 21.7 million lbs., though some of that was due to a 12.8-million-lb. downward revision to March stocks. Still, pork stocks declined 43.5 million lbs. (8.7%) from April 2024 and 92.5 million lbs. (16.9%) from the five-year average.
- June lean hogs are trading around Friday’s low, limited by the 40-day moving average at $98.79, while initial support lies at $97.92.