Corn is mostly unchanged to a penny lower.
- Nearby corn futures are modestly weaker despite solid outside market support.
- Weekly ethanol production averaged a record 1.12 million barrels per day (bpd) during the week ended June 6, up 15,000 bpd (1.4%) from last week and 97,000 bpd (9.5%) above the same week last year. Ethanol stocks dropped 706,000 barrels to 23.734 million barrels.
- Overnight, Taiwan purchased 65,000 MT of corn expected to be sourced from Brazil.
- July corn futures are facing pressure from the 20-day moving average, trading at $4.46 3/4, while support lies at the 10-day moving average of $4.40 1/2, then at $4.35 3/4.
Soybeans are unchanged to 2 cents lower, while soymeal is around $1.00 lower. Soyoil is fractionally higher.
- Soybeans are slightly weaker in consolidative trade, with solid technical support curbing heftier seller interest.
- U.S. and Chinese officials said after two days of meetings in London they had agreed on a framework deal to keep the trade truce intact and remove China’s export restrictions on rare earths. Commerce Secretary Howard Lutnick said the framework deal puts “meat on the bones” of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs.
- Trade negotiations between the EU and U.S. are expected to stretch beyond President Donald Trump’s self-imposed July 9 deadline, despite a recent acceleration in talks. Citing people familiar with the matter, Bloomberg reports that EU officials see reaching a deal on broad principles by that date as the best-case scenario — but emphasize that more time will be needed to resolve technical details.
- Soybean futures continue to face resistance at $10.62 1/2, while support lies at the 20-, 40-, 100- and 10-day moving averages, layered from $10.53 3/4 to $10.49 1/4.
Winter wheat futures are mostly unchanged to a penny lower, while HRS futures are a penny to 2 cents higher.
- SRW wheat futures are modestly weaker as technical resistance continues to crimp momentum.
- Wet conditions in southern Kansas through northern Texas have slowed HRW wheat harvest, with the wet weather also increasing the risk of head sprouting.
- Russia’s Southern will get a few waves of light rain to support winter crops, although resulting rain will be light, leaving moisture deficits in place, according to World Weather Inc. However, plenty of moisture will continue to fall in other Russia locations, along with western Ukraine and northeastern Kazakhstan during the next ten days.
- July SRW futures continue to battle resistance at the 20- and 40-day moving averages, each trading around $5.37 1/2, while support lies at $5.35 3/4.
Live cattle and feeders are notably lower at midsession.
- Nearby live cattle are correctively weaker while traders pause in anticipation of cash cattle trade to develop in earnest.
- Traders are hesitant to extend last week’s gains amid caution around a potential decline in cash prices.
- After showing potential signs of pausing last week, wholesale beef prices have regained upward momentum. Boxed beef prices jumped $4.51 to $371.76 for Choice and 91 cents for Select to $359.84 on Tuesday.
- June live cattle are trading narrowly within Tuesday’s upper range, with resistance serving at this week’s high of $228.15, while support lies at $225.05.
Hog futures are firmer in choppy trade at midmorning.
- Nearby lean hogs have scored a new contract high amid increasing cash strength and simultaneous wholesale support.
- The CME lean hog index is up another 92 cents to $99.97 as of June 9.
- Pork cutout firmed 59 cents to $110.88 on Tuesday. Pork plant margins have tightened amid the seasonally rising cash market but remain slightly in the black due to strengthening wholesale pork prices.
- July lean hogs have notched a fresh for-the-move and contract high, with resistance now serving at $110.18. Initial support lies at $107.88.