Corn futures are 4 to 7 cents lower at midmorning.
- Nearby corn futures are extending losses for a third straight session as generally favorable planting conditions and sinking crude oil futures continue to pressure prices.
- The upper Midwest and west-central Corn Belt will continue drier than usual through May 19, which will allow for rapid planting progress. Areas of the southern Mississippi and Tennessee river basins remain too wet.
- USDA reported corn export inspections of 1.61 MMT (63.3 million bu.) during the week ended May 1, down 58,065 MT from the previous week but near the upper end of pre-report expectations from 1.3 MMT to 1.75 MMT.
- Overnight, South Korea purchased one cargo (65,000 to 70,000 MT) of corn expected to be sourced from the United States.
- July corn futures have extended to a one-month low, with next support at $4.57, which is backed by the March 28 low of $4.50 1/2.
Soybeans are 6 to 7 cents lower, while soymeal futures are trading just below unchanged. Soyoil is around 60 points lower.
- Soybeans are lower in narrow trade, with technical support limiting a downside momentum.
- USDA reported soybean export inspections of 324,101 MT (11.9 million bu.) during the week ended May 1, down 133,743 MT from the previous week and near the low end of pre-report expectations from 300,000 to 600,000 MT.
- President Trump called for a “fair” and “balanced” deal with China but confirmed he does not plan to speak directly with President Xi Jinping this week. “We’re talking to them — we’ll see what happens,” he said, suggesting potential announcements soon without committing to a timeline.
- July soybeans are trading narrowly in sideways trade, with the support at the 200-day moving average of $10.48 3/4, while resistance stands at the 10-day moving average of $10.53 3/4.
Winter wheat futures are mostly 6 cents lower, while HRS futures are around a penny lower.
- SRW wheat futures are taking back a portion of Friday’s gains as improving weather conditions are boosting U.S. production prospects.
- Significant rainfall is expected from the west-central to southern areas of the Plains this week, bringing beneficial precip to the HRW crop.
- USDA reported wheat export inspections of 310,326 MT (11.4 million bu.) during the week ended May 1, down 338,874 MT from the previous week and below pre-report expectations of 400,000 to 600,000 MT.
- Strong and prolonged frosts followed by unusually high temperatures and a lack of precipitation in April had a negative impact on the development of Ukrainian spring crops, state forecasters said. Frosts in early April covered a majority of Ukraine, while moisture deficits continued with only pockets of the country receiving normal or above-normal amounts during the month.
- Overnight, Taiwan tendered to buy 99,200 MT of U.S. milling wheat.
- July SRW futures are facing resistance at the 20-day moving average of $5.47 3/4, while support lies at $5.33 1/4.
Live cattle and feeders are moderately to sharply higher at midmorning.
- Nearby live cattle have soared to new highs amid support from another week of record cash trade.
- Cash cattle prices reached a record for a second straight week, though the official figure from USDA won’t be known until later this morning. While packer margins remain deep in the red, they are having to bid up for cattle to ensure enough beef supplies to meet retailer demand amid reduced slaughter runs.
- A Japanese delegation is in Brazil to finalize the schedule and itinerary for inspecting meat processing facilities — an essential step toward opening Japan’s market to Brazilian beef exports. Meanwhile, Brazil’s meat lobby group ABPA said South Korea had exempted certain Brazilian pork imports from tariffs.
- June live cattle have forged a contact high, with resistance now at $213.53, while initial support lies at $210.71.
Hog futures are modestly weaker at midsession.
- Nearby lean hogs are modestly weaker despite notable wholesale gains and persisting cash strength.
- The recent string or strength in the CME lean hog index continues, with it up another 12 cents to $89.69 as of May 1.
- The pork cutout value rose $1.92 to $98.38 amid gains in all cuts aside from bellies and hams. Movement totaled 384.8 loads.
- June lean hogs are trading within Friday’s range, with resistance at the 10-day moving average of $99.72, which is backed by Friday’s high of $99.90. Initial support lies at $98.03.