Old-crop corn futures are 2 cents lower, while new-crop contracts are about 2 cents higher.
- Nearby corn futures have eased from earlier highs amid bear spreading.
- U.S. and Chinese officials will meet this weekend for trade talks, though no breakthroughs are expected. Barring a mandate in any potential trade deal down the road, China isn’t likely to import much U.S. corn.
- Mexican Agriculture Minister Julio Berdegue said on Tuesday he reached agreements with USDA Secretary Brooke Rollins in a “friendly” meeting in Washington and met with tomato industry executives. Berdegue did not elaborate in his post on X, but said the deals would benefit both countries.
- Weekly ethanol production averaged 1.020 million barrels per day (bpd) during the week ended May 2, down 20,000 bpd (1.9%) from the previous week but 55,000 bpd (5.7%) above the same week last year. Ethanol stocks declined 198,000 barrels to 25.191 million barrels.
- July corn futures have tested resistance at the 200-day moving average, trading at $4.61 1/2, though efforts so far have been futile. Initial support lies at $4.52 3/4.
Soybeans are a penny to 5 cents higher, while soymeal futures are $1.00-plus higher. Soyoil is modestly weaker.
- Soybeans have given up much of the earlier price strength amid technical resistance.
- Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will meet China’s economic tsar He Lifeng in Switzerland this weekend for talks that could be the first step toward resolving the trade war. However, no major breakthroughs are expected.
- China’s Zhejiang Jiaao Enprotech said its east China-based subsidiary biofuel plant exported its first cargo of sustainable aviation fuel (SAF). The company did not disclose the 13,400 MT cargo’s destination, but multiple trade sources told Reuters it was bought by a Western trader and will be heading to Europe, possibly Spain.
- Malaysian palm oil futures are likely to extend their decline and trade near a two-year low of 3,500 ringgit ($826.5) per metric ton from June to November as recovery in production leads to a stock build, industry analyst Dorab Mistry said. Palm oil production usually rises in top two producers Indonesia and Malaysia in the second half of the year.
- July soybeans tested resistance at the 200-, 20- and 10-day moving averages, trading around $10.48 1/2 and $10.52 1/4, and are now leaning on support at the 100-day moving average of $10.42 1/2.
SRW wheat futures are chopping around unchanged while HRW futures are 4 to 5 cents lower. HRS futures are mostly 2 cents lower.
- Wheat futures have given up overnight price strength with pressure from a firmer U.S. dollar and mostly favorable U.S. weather conditions.
- A group of Oklahoma crop experts projected Oklahoma’s 2025 winter wheat production at 101.169 million bu. with an average yield of 35.9 bu. per acre following an annual crop tour across the state. The estimates were based on field assessments conducted by Oklahoma State University Extension specialists as well as private crop consultants and area agronomists.
- Southwestern Kansas and the Oklahoma Panhandle reported some significant rain, which has relieved some lingering dryness and improved winter wheat development.
- July SRW futures were turned back by resistance at the 20-day moving average of $5.45 3/4 and are now testing support at 5.34 1/4, which is followed by $5.29 3/4.
Live cattle and feeders are posting sharp losses at midmorning.
- Nearby live cattle are lower in corrective trade after the recent string of contract highs.
- Despite raising cash prices more than $13.00 the past three weeks and buying the largest total of cattle of the year last week, packers have remained active with cash bids. Initial cash trade got underway at steady/firmer prices in the Southern Plains on Tuesday, though many feedlots were holding out for even stronger prices.
- Wholesale beef values rose $1.10 to $344.67 while Select firmed $4.90 to $332.97, narrowing the Choice/Select spread to $11.70. Movement totaled 117 loads.
- June live cattle dropped through initial support at $213.01, with next support at $211.00. Resistance stands at Tuesday’s high of $214.325.
Hog futures are modestly weaker at midsession.
- Nearby lean hogs are extending Tuesday’s weakness as traders continue to narrow premiums to the cash index and amid a fading technical posture.
- The CME lean hog index is up another 27 cents to $90.13 as of May 5.
- Pork cutout slid 95 cents on Tuesday to $95.70 amid declines in all cuts aside from primal picnics. Movement totaled 348.4 loads.
- South Korea has approved a 10,000-MT duty-free quota for frozen pork imports from Brazil, eliminating the previous 25% tariff — except for pork belly cuts. The move is expected to significantly boost bilateral trade and expand Brazil’s presence in Asia’s protein market. Currently, only the Brazilian state of Santa Catarina is authorized to export pork to South Korea but there has been progress in improving animal health standards, particularly in Paraná and Rio Grande do Sul.
- June lean hogs are trading within Tuesday’s lower range, with resistance at $98.35, while support lies at $96.93, which is backed by the 200-day moving average.