Market Snapshot | Global wheat production concerns resurface

June 4, 2025

Pro Farmer's Market Snapshot
Pro Farmer’s Market Snapshot
(Pro Farmer)

Corn futures are 1 to 2 cents firmer.

  • Nearby corn futures are modestly firmer amid corrective buying, with technical resistance crimping gains.
  • Ethanol production averaged 1.105 million barrels per day (bpd) during the week ended May 30, up 49,000 bpd (4.6%) from last week and 33,000 bpd (3.1%) above the same week last year. Ethanol stocks rose 159,000 barrels to 24.440 million barrels.
  • Ukrainian corn exports are set to fall to 1 MMT in June from 2 MMT last month, as Ukraine-origin corn is uncompetitive compared to its U.S. equivalent, producers’ union UAC said.
  • July corn futures continue to be limited by the 20- and 10-day moving averages, each trading around $4.50, while support lies at Tuesday’s low of $4.34 1/4.

Soybeans are 5 to 7 cents higher, while soymeal is $2.00-plus firmer. Soyoil is marginally higher.

  • Soybeans are posting followthrough corrective gains, with support from meal.
  • President Donald Trump said Chinese President Xi Jinping is tough and “extremely hard to make a deal with,” days after he and other U.S. officials accused China of violating an agreement to roll back tariffs and trade restrictions.
  • White House Press Secretary Karoline Leavitt on Tuesday said the administration expects to announce new trade deals “soon,” as the Office of the U.S. Trade Representative has set a deadline of today for countries negotiating over threatened U.S. tariffs to submit their final and best offers. The deadline affects multiple ongoing talks, including with close allies and top trading partners such as the UK, Japan, India and the European Union.
  • July soybeans are testing resistance at the 40-, 100- and 10-day moving averages, but are being limited by the 20-day moving average of $10.54 1/2. Support is layered at 200-day moving average, currently trading at $10.47, then $10.39 1/4 and $10.24 1/4.

SRW and HRS wheat futures are mostly 1 to 2 cents higher, while HRW futures are a penny lower.

  • SRW wheat futures are firmer in sideways trade, amid modest short-covering.
  • China’s wheat production may shrink by as much as 5% in 2025, reaching the lowest output in seven years, as persistent drought scorches major growing regions in the north, Bloomberg reported. Citing a survey of five traders and analysts, Bloomberg said production is expected to fall to between 133 MMT and 135 MMT, compared with last year’s record 140 MMT.
  • World Weather Inc. reports Canada’s Prairies and Montana are too dry and crop stress continues to rise. Restricted rainfall is expected over the next 10 days which is liable to leave crops in the region stressed and developing poorly.
  • Krasnodar Governor Veniamin Kondratyev instructed officials to consider declaring a state of emergency due to dry weather in northern parts of the region, according to SovEcon. Krasnodar is one of the largest wheat growing regions in Russia.
  • July SRW futures continue to face resistance at the 40-day moving average at $5.39 1/2, while support lies at the 20-day moving average of $5.32 1/2.

Live cattle and feeders are posting moderate to strong gains at midsession.

  • Nearby live cattle are sharply higher amid solid technical support and the big discount they hold to the cash market.
  • Cash trade this week has commenced at lower prices in Iowa/Minnesota, though trade has been light, with no activity in the heavier populated areas.
  • Wholesale beef prices weakened 56 cents to $365.44 for Choice and $1.59 to $356.52 for Select on Tuesday. Both are trading just below their recent highs, which were only topped during the historic surge in 2020.
  • June live cattle are trading within Tuesday’s range, supported by the 10- and 20-day moving averages at $215.18 and $214.52. Initial resistance stands at $217.73 and is backed by the contract high of $218.625, which is also the all-time high on the continuation chart.

Hog futures are mostly firmer in midmorning trade.

  • June lean hogs are edging modestly lower despite continued strength in the cash index as traders narrow the premium. Deferred contracts are firmer.
  • The CME lean hog index is up 44 cents to $96.34 as of June 2.
  • Pork cutout dropped 64 cents to $106.11 on Tuesday, as all cuts except ribs weakened. However, movement improved to 348.5 loads, suggesting strong retailer demand. With wholesale beef prices at the second highest level ever, pork is a value buy at current levels.
  • June lean hogs dropped below Tuesday’s low but are supported by the 10- and 20-day moving averages at $99.84 and $99.37. Initial resistance stands at $100.725.