Corn is mostly 4 cents lower at midmorning.
- Corn futures are weaker ahead of USDA’s August production, supply and demand updates.
- USDA reported daily sales of 315,488 MT to Mexico. Of the total, 20,830 MT is for 2024-25 and 294,658 MT is for 2025-26.
- USDA rated the corn crop as 72% “good” to “excellent” and 7% “poor” to “very poor.” On the Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop declined two percentage points to 382.8.
- Crop consultant Dr. Michael Cordonnier raised his corn yield estimate 1.0 bushel per acre to 183.0 bu. amid stable crop conditions. He indicated a neutral bias going forward as producers continue to report “tipback,” especially east of the Mississippi, a likely result of high nighttime lows.
- India’s drive to produce more ethanol is leading its farmers to switch away from growing oilseeds, as New Delhi looks to meet its 20% blend target.
- December corn futures are facing resistance at the 10- and 20-day moving averages, layered at $3.85 1/2 and $3.92 1/2, while support lies at $3.81 1/4, $3.77 1/2 and the Aug. 6 low of $3.75.
Soybeans are mostly 14 cents lower, while soymeal is around $4.30 lower. Soyoil is 80 points lower.
- Soybean futures are correctively lower as traders mull over an extension of the trade truce with China ahead of USDA’s supply and demand update.
- The U.S. and China have extended a tariff truce for another 90 days.
- USDA rated the soybean crop as 68% “good” to “excellent” and 7% “poor” to “very poor.” On our CCI, the crop declined 1.3 points to 368.7.
- Dr. Michael Cordonnier left his soybean yield unchanged at 52.5 bu. per acre and noted a neutral bias going forward amid increasing moisture shortages in the southwestern Midwest and Delta.
- November soybeans continue to be limited by the 20-day moving average of $10.07 1/4, while support lies at the 10-day moving average of $9.92 1/2.
Wheat futures are mostly 2 to 6 cents lower.
- SRW wheat futures are weaker despite a fading U.S. dollar, amid improved global supply prospects.
- USDA rated the spring wheat crop as 49% “good” to “excellent” and 18% “poor” to “very poor.” On our CCI, the spring wheat rating rose three points from the previous week to 347.3.
- Rain will be absent across Ukraine this week, helping farmers to advance harvest efforts, which are 26% behind year-ago, according to a state weather forecaster and the Ukrainian economy ministry.
- Earlier today, Sovecon raised its forecast for the Russian wheat crop in 2025 to 85.2 MMT, up from the previous estimate of 83.3 MMT.
- December SRW futures continue to face resistance at the 10-day moving average, trading at $5.35 1/2, while support lies at $5.28 1/4 and is backed by the Aug. 6 low of $5.25.
Live cattle are modestly firmer, while feeders are posting heftier gains at midsession.
- Nearby live cattle are modestly firmer as traders remain hesitant to build heftier futures’ discounts to cash.
- Last week, cash cattle traded slightly lower at $242.01 but remain well above nearby futures.
- Wholesale beef values soared on Monday, with Choice up $2.68 to $381.52, while Select rose $4.52 to $359.61. Movement was light, however, at only 85 loads.
- August live cattle continue to find support at the 10-day moving average of $232.975, while resistance stands at $234.58.
Hog futures are mixed at midmorning.
- Nearby lean hogs are mostly firmer with continued support from wholesale fundamentals.
- The CME lean hog index is down 23 cents to $110.08 as of Aug. 8.
- The pork cutout value rose $1.69 to $119.09 amid gains in all cuts aside from primal ribs and hams. Movement totaled 318.5 loads.
- August lean hogs are up against resistance at $109.66, while initial support lies at $109.44.