Corn futures are 1 to 3 cents higher at midmorning.
- Corn futures are finding spillover strength from soybeans to start the session.
- Ethanol production for the week ending June 5 was unchanged from the prior week at 1.108 million barrels per day. Ethanol stocks declined 154,000 barrels to 24.452 million barrels.
- Attacks on Ukrainian ports in Odesa, which account for 90% of the country’s agricultural exports, are threatening a significant reduction in shipments according to the Ukrainian Farmer’s Union UAC.
- July corn futures are facing continued resistance around Friday’s high of $4.24 3/4, while finding support in the $4.18 area.
Soybeans are 8 to 12 cents higher, while soymeal is $2.00 to $3.00 higher, and soyoil is 30 to 40 points higher.
- The soy complex is firmer at mid-session, supported by a bounce in soy meal at the psychological $300 mark and higher oil prices.
- Weather in the Midwest is expected to be favorable for yield potential over the next two weeks as regular rounds of rain are expected, according to World Weather Inc.
- July soybeans are working to break a price downtrend that has been in place sine early June. Initial resistance is stemming from last Thursday’s close of $11.29 3/4, with firmer resistance higher at the 10-day ,moving average of $11.48 1/2. Soybeans find support at last week’s low close of $11.21 1/2.
Winter wheat futures are 2 to 5 cents higher while HRS futures are around 2 to 4 cents higher.
- SRW wheat futures are modestly firmer as they look to capitalize on spillover strength from the rest of the grains complex.
- Egypt, typically a sizable importer of wheat, purchased 4.6 MMT of wheat from Egyptian farmers this season.
- Jordan has issued a tender to purchase up to 120,000 MT of wheat from optional sources.
- Cocereal has increased it’s estimate of soft wheat production in the EU and Britain 143.7 MMT from 142.6 MMT that was forecasted in March.
- July SRW futures are finding support at last week’s close of $5.80, and will likely face resistance at the 100-day moving average of $5.98 3/4, then the 10-day moving average of $5.95 1/4.
Live cattle are slightly firmer and feeders are weaker at midday.
- Cattle futures continue to trade mixed as markets digest potential impacts of the new world screwworm.
- Beef and veal prices increased 12.9% year-over-year according to this morning’s CPI report, with ground beef increasing 12.1% over that time.
- USDA reported light case trade with steers averaging $253.39, down from last week’s average of $256.53.
- Yesterday afternoon’s report showed choice boxed beef up 70 cents to $392.90.
- August feeder cattle futures are facing initial resistance at the 20-day moving average of $354.40, with firmer resistance at the 100-day moving average of $358.02. Support is found in the 10-day moving average of $350.88.
Hog futures are firmer at mid-session.
- Lean hog futures are slightly firmer as bears are facing resistance at seven-month lows.
- The most recent CME lean hogs index is up 3 cents to $92.63.
- Yesterday afternoon’s report showed pork cutout down $2.50 to $95.96, led by losses in butts and hams.
- August lean hogs continue to face resistance at yesterday’s open of $96.00, with firmer resistance at the 10-day moving average of $97.84. Support is found at the mid-to-late November closes in the $94.00 area.