Corn futures are mostly a nickel to 10 cents lower at midmorning.
- Nearby corn futures are facing pressure despite evidence of value buying from foreign buyers as corn plantings continue to advance at an above average pace.
- USDA reported daily corn sales of 120,000 MT to Spain during 2024-25.
- USDA reported 24% of the corn crop was planted as of April 27, two percentage points ahead of the five-year average.
- South American crop consultant Dr. Michael Cordonnier raised his Argentine corn crop estimate 1 MMT to 49 MMT but maintained his Brazilian estimate of 125 MMT. However, he has a higher bias toward the Brazilian corn crop as weather is favorable for safrinha production.
- Overnight, South Korea purchased 66,000 MT of corn to be sourced from the U.S., South America or South Africa and up to 65,000 MT of optional origin feed wheat. Taiwan tendered to buy 65,000 MT of U.S. corn.
- July corn futures dropped below the 20- and 100-day moving averages, with support at $4.72 1/4 being tested. The 10-day moving average of $4.85 1/4 stands as initial resistance.
Soybeans are 13 to 17 cents lower, while soymeal futures are marginally lower. Soyoil is around 130 to 140 points lower.
- Soybeans are being pressured by the above-average planting pace, concerns with China trade relations and heavy spillover from soyoil.
- USDA reported daily soybean sales of 110,000 MT to unknown destinations during 2024-25.
- USDA reported soybeans were 18% planted as of April 27, six points ahead of the five-year average.
- Cordonnier raised his Argentine soybean production estimate 1 MT to 50 MMT amid stronger-than-expected yields. He kept his Brazilian estimate unchanged at 169 MMT.
- China aims to cut grain use in livestock feed to around 60% and slash soymeal content to about 10%, according to the agriculture ministry in a statement earlier today.
- July soybeans are testing support at the 200-day moving average of $10.49 1/2, while initial resistance is at $10.64.
Winter wheat futures are 5 to 7 cents lower, while HRS futures are mostly 2 cents lower.
- Winter wheat futures dropped to new contract lows this morning.
- USDA rated the winter wheat crop 49% “good” to “excellent” and 19% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop improved 9.2 points to 325.0, fueled by a 5.4-point jump in top producer Kansas. The SRW rating dropped 1.5 points as slight declines in Michigan, Ohio, North Carolina and Arkansas offset modest improvements in the other states. Click here for more details.
- SovEcon raised its forecast for Russia’s 2024-25 wheat exports to 40.7 MMT, up 200,000 MT from a previous estimate. SovEcon increased its outlook for 2025-26 exports by 600,000 MT to 39.7 MMT.
- A drought in northern China’s wheat belt is expected to worsen with no major rainfall forecast for the next 10 days, according to the water resources minister, as it ordered full support for drought relief efforts as the crop enters a key growing period.
- July SRW futures posted a new low at $5.24 1/2 with next support at $5.20. Resistance remains at $5.40 3/4.
Live cattle are moderately firmer while feeders are sharply higher.
- Nearby live cattle have notched a fresh contract high amid firming cash fundamentals.
- Cash cattle prices averaged a record $216.32 last week, topping the previous high from the week ended March 21 by $3.56. Last week’s 555,000 head slaughter was the smallest for that week except for Covid in modern history.
- Packers are expected to keep slaughter levels historically low, despite May typically being one of the larger slaughter months of the year, as they deal with highly negative margins.
- The U.S. and Mexico reached an agreement on the handling of New World screwworm, USDA Secretary Brooke Rollins said late Monday. Rollins noted the two countries reached “a good solution” and promised details soon.
- June live cattle have carved a fresh contract high at $210.975. Initial support lies at $209.225.
Hog futures are weaker at midsession.
- Nearby lean hogs are weaker as traders pause following a recent stretch of gains, though technical support is limiting the downside.
- The CME lean hog index is up another 64 cents to $88.18 as of April 25, the eighth straight daily rise.
- The pork cutout value slid 42 cents to $97.62 on Monday, amid declines in all cuts aside from hams and picnics.
- Smithfield Foods posted higher first-quarter sales and profit, helped by strong demand for its packaged meats and pork businesses. The company’s fresh pork sales increased 4.9% from year-ago in the first quarter, while packaged meat sales rose 1.2%.
- June lean hogs are finding support at the 100- and 10-day moving averages, trading at $99.20 and $99.44. Resistance is layered at Monday’s high of $101.975, then at $102.125.