Corn is mostly 3 to 5 cents lower.
- Corn futures continue to weaken, with spillover pressure stemming from wheat amid a firmer U.S. dollar.
- USDA reported the corn crop was 73% “good” to “excellent” as of July 27, down one percentage point from the previous week, while the “poor” to “very poor” rating stood at 7%. On the weighted Pro Farmer Crop Condition Index (CCI; 0 to 500-point scale, with 500 representing perfect), the corn crop improved less than 1 point to 385.8.
- High temps and lack of rain could reduce Ukraine’s corn harvest by 2 MMT, according to Ukrainian agricultural producers’ union UAC earlier today.
- September corn edged to a new contract low, with support now serving at $3.87 1/4, while resistance is at $3.95 1/4, then the 10- and 20-day moving averages.
Soybeans are mostly 2 to 6 cents lower, while soymeal is around $1.50 lower. Soyoil is mostly 25 points lower.
- Soybeans are being led lower by meal futures, though USDA’s unexpected improvement in soybean conditions are also weighing on the complex.
- USDA reported the soybean crop was 70% “good” to “excellent” as of July 27, up two points from the previous week while 6% was rated “poor” to “very poor.” On our CCI, the soybean crop improved 2.9 points, hovering just above last year.
- Posting on social media late Monday in Scotland, President Trump said he is not seeking a summit with Chinese leader Xi but is considering going to China at Xi’s invitation. This comes as U.S. and China trade officials are meeting this week in Stockholm, Sweden.
- Malaysian palm oil futures snapped a two-session losing streak Tuesday and hovered around MYR 4,260 per MT. The market was supported by a weaker ringgit and gains in Dalian soyoil. Better demand from top buyer India is also expected to continue ahead of the Diwali festival in mid-October.
- August soybean futures are facing support at $9.85 1/4, which is backed by the April 7 low of $9.82 3/4, while initial resistance stands at $9.90 1/2, then at the psychological $10.00 level.
SRW wheat futures are mostly 7 to 8 cents lower, while HRW futures are 4 cents lower. HRS futures are mostly unchanged.
- SRW wheat futures have turned from earlier lows but remain pressured by technical resistance and U.S. dollar strength.
- USDA rated the spring wheat crop as 49% “good” to “excellent” and 16% “poor” to “very poor” as of Sunday. On our CCI, the spring wheat crop declined 5 points and sits 39 points below year-ago.
- SovEcon reports a state of emergency was declared in two of the 31 municipal districts of Russia’s Voronezh region following severe thunderstorms with squally winds and hail in mid-July.
- December SRW futures have rebounded from earlier lows, with support serving at $5.49 1/2 and the May 13 low of $5.43 3/4, while the 10-, 20- and 40-day moving averages, trading at $5.60 1/2, $5.65 1/4 and $5.71 1/2 limit the upside.
Live cattle are mixed while feeders are slightly firmer at midsession.
- Nearby live cattle are consolidating following recent strength.
- Cash cattle trading last week averaged $239.38, up $1.60 from the previous week.
- Wholesale beef values rose on Monday, with Choice up $1.05 to $367.73, while Select rose $1.98 to $346.85. Movement was light at only 91 loads.
- August live cattle are holding an inside range, limited by Monday’s high of $228.85, while support lies at $226.57.
Hog futures are solidly lower at midmorning.
- Nearby lean hogs are facing pressure amid fading cash gains and wholesale pressure.
- The CME lean hog index is up another 4 cents to $110.32 as of July 25.
- Pork cutout fell 57 cents to $118.29 on Monday, led by losses in primal butts.
- August lean hogs are trading within Monday’s lower range, with resistance now serving at the 40-day moving average of $108.30, while support lies at the 10- and 20-day moving averages of $107.29 and $106.65.