Corn is mostly 6 to 7 cents lower.
- Nearby corn futures are posting losses for the fourth straight session amid eroding technicals and fund-based selling.
- U.S. weather remains mostly favorable, with another wave of rains pushing across the western and northern Corn Belt today.
- Ethanol production averaged 1.081 million barrels per day (bpd) during the week ended June 20, down 28,000 bpd (2.5%) from last week but 38,000 bpd (3.6%) above the same week last year. Ethanol stocks increased 284,000 barrels to 24.04 million barrels.
- Southern Brazil faced hard freezes this morning from northern Rio Grande do Sul to eastern and some central Parana locations, according to World Weather Inc. Most safrinha corn areas in Parana were outside the coldest region, although frost and a couple light freezes may have impacted a part of the region. Meanwhile, drying is needed amid frequent rains.
- July corn futures posted a new low at $4.08, with next support being the psychological $4.00 mark. Near-term resistance is layered to $4.17 3/4.
Soybeans are 9 to 11 cents lower, while soymeal is around $4.50 cents lower. Soyoil is around 40 points higher.
- Soybeans are weaker, with pressure stemming from soymeal and corn.
- South Dakota, Nebraska, Iowa, southern Minnesota and Wisconsin will receive significant rain over the next several days, improving crop field conditions.
- The Trump administration is delaying the announcement of new trade deals until Congress passes Republicans’ massive tax and spending bill, according to National Economic Council Director Kevin Hassett. The so-called “megabill,” currently the subject of heated negotiations, includes major tax cuts and spending provisions and is expected to be finalized around the July 4th congressional recess.
- July soybean futures have found support at $10.35 3/4, while resistance stands at the 200-, 100-, 20- and 40-day moving averages, layered from $10.47 1/2 to $10.54 1/2.
Winter wheat futures are 7 to 10 cents lower, while HRS futures mostly 7 to 8 cents lower.
- SRW wheat futures are posting followthrough technical selling, with pressure from general weakness across the grain and soybean markets.
- Black Sea consulting firm SovEcon raised its forecast for Russia’s wheat crop by 200,000 MT to 83 MMT, citing improved crop conditions in areas of central Russia.
- Ukrainian drone attacks overnight damaged a grain facility and other structures in Russia’s southern region of Rostov on the Ukrainian border, Russian authorities said. In the town of Azov, situated on the Don River about 16 km (10 miles) from the Sea of Azov, the attack damaged a grain storage warehouse, though no further details were provided.
- July SRW futures have extended below $5.29 1/2, with next support at $5.23 1/4. Initial resistance is at the 40-, 20- and 10-day moving averages, layered from $5.36 3/4 to $5.44 1/2.
Live cattle and feeders are firmer at midsession.
- Nearby live cattle are mildly firmer, though technical resistance is limiting buying. Deferred contracts are mildly weaker.
- Feeders are moderately higher on continued selling in the corn market.
- USDA will detail frozen meat stocks at the end of May in this afternoon’s Cold Storage Report. The five-year average is a 28.7-million-lb. decline in beef stocks.
- Despite the second highest wholesale beef prices behind the Covid-induced spike in 2020, packers continue to move a lot of product. Last week’s total volume reached 7,354 loads, with formula sales marking a new high for the year.
- August live cattle are being limited by the 40-day moving average of $210.70, while support lies at $207.92.
Hog futures are mixed at midmorning.
- Nearby lean hogs are firming after a weaker start.
- USDA will detail frozen meat stocks at the end of May in this afternoon’s Cold Storage Report. The five-year average is a 28.4-million-lb. drop in pork stocks during the month.
- The CME lean hog index is up another 89 cents to $110.44, extending the seasonal price rise. Since April, the index has surged more than $25.00 to the highest level since August 2022, though it remains nearly $12.00 below that year’s peak.
- Pork cutout declined $1.55 to $121.56 on Tuesday.
- July lean hogs rebounded from a test of support at $111.53, which is backed by the 10-day moving average of $111.22. Initial resistance at $112.44 is being challenged. Stronger resistance is at the contract high at $113.70.