Old-crop corn is around 4 cents higher while new-crop is mostly unchanged.
- Nearby corn futures are posting modest corrective gains amid light bull spreading.
- Rain in the northern Plains will be great for crops, with heavy rainfall expected in the western and central Dakotas, according to World Weather Inc. Most of the Midwest will experience a good mix of rain/sunshine over the next couple of weeks maintaining a very good outlook for fieldwork and crop development.
- Ethanol production averaged 993,000 barrels per day (bpd) during the week ended May 9, down 27,000 bpd (2.6%) from the previous week and 7,000 bpd (0.7%) below the same week last year. Ethanol stocks increased 254,000 barrels to 25.445 million barrels.
- Overnight, South Korea purchased 65,000 MT of corn expected to be sourced from South America or South Africa.
- July corn futures are holding an inside range, with resistance at $4.48 1/4 and support at Tuesday’s low of $4.36 1/2.
Soybeans are unchanged to 4 cents higher, while soymeal is marginally weaker and soyoil is around 10 points higher.
- Soybeans are chopping around unchanged after reaching a three-month high in overnight trade.
- Following last weekend’s trade breakthrough in Switzerland, the U.S. and China agreed to sharply reduce headline tariffs for 90 days. Despite the headline tariff reductions, Chinese exporters are still looking at an average effective rate of about 50%, according to Huatai Securities and U.S. Treasury Secretary Scott Bessent.
- India imported 321,446 MT of palm oil in April, down 24.3% from March, according to the Solvent Extractors’ Association of India. Imports of soyoil increased 1.6% to 360,984 MT, while sunflower oil arrivals fell 5.5% to 180,128 MT.
- July soybeans are facing resistance at $10.81 1/2, while initial support lies at $10.67 1/4.
Winter wheat futures are 4 to 8 cents higher, while HRS futures are mostly 3 cents lower.
- SRW wheat futures are extending Tuesday’s gains in modest corrective trade.
- Crop scouts on the first day of the Wheat Quality Council’s annual HRW tour of Kansas found a higher yield from field samples than last year across northern areas of the state. The average yield for HRW wheat found in fields between Manhattan, Kansas and Colby was estimated at 50.5 bu. per acre, up from 49.9 bu. on similar routes last year and the five-year average of 45.1 bu. per acre. That was the tour’s highest Day 1 yield estimate since 2021.
- France’s ag ministry raised it 2024-25 wheat export forecast outside the EU by 100,000 MT to 3.2 MMT, though would still be down 69% from last year. Wheat shipments within the bloc were raised 130,000 MT to 6.55 MMT. Even after the upward revisions, France’s wheat exports are expected to be the lowest in ag ministry records dating back to 1996-97.
- Egypt is looking to buy more grain from Russia and is ready to broaden the list beyond wheat to include corn and soybean meal, Russia’s agriculture watchdog said. The statement followed talks between the head of the watchdog Sergei Dankvert and Egyptian Agriculture Minister Mostafa El-Sayyad in two-way government commission meetings in Moscow.
- July SRW futures are facing initial resistance at $5.22 3/4, which is backed by the 10, 20- and 40-day moving averages layered from $5.28 to $5.46 3/4. Initial support lies at $5.09, then at Monday’s low of $5.06 1/4.
Live cattle are firmer, while feeders are weaker.
- Nearby live cattle are modestly firmer given steep discounts to the cash market as traders wait for cash trade to develop in earnest.
- Cash cattle trade has had a slow start to the week, with a little trade taking place at modestly firmer prices
- Wholesale Choice beef prices firmed $1.96 to $350.10 on Tuesday, topping that level for only the second time. Still, packer margins remain buried deep in the red – the worst in 10 years – as wholesale price strength hasn’t kept pace with surging cash prices.
- June live cattle are holding an inside range, pressured by resistance at Monday’s high of $217.75, while support lies at $215.86.
Hog futures are lower at midsession, with moderate to sharp losses in deferred contracts.
- May hogs are modestly weaker ahead of today’s noon CT expiration, while deferred contracts are facing heavier selling.
- The CME lean hog index is up 39 cents to $90.31 as of May 12, ending a three-day slide. May lean hog futures, which expire at noon CT today and are settled against the index on May 16, finished Tuesday 66.5 cents above today’s quote.
- The pork cutout value rose 51 cents on Tuesday to $97.02, led by gains in primal ribs, hams and butts. Movement totaled 360.0 loads.
- June lean hogs are trading within Tuesday’s range, while testing support at the 10-day moving average of $98.09.