Corn futures are mostly 3 cents lower.
- Corn futures are being led lower spillover weakness from the wheat market.
- Most crop areas will receive some rains over the next 10 days, which will be beneficial for recently planted corn, especially in the drier areas.
- Too much rain is expected in the lower Ohio River Valley, northern Delta, Kentucky and Tennessee over the next couple of weeks, resulting in more delays to farming activity, notes World Weather Inc.
- July corn futures are testing initial support at $4.44 1/2, which is backed by this week’s low of $4.36 1/2. Resistance stands at the 10-day moving average of $4.48 1/2.
Soybeans are mostly 1 to 3 cents higher, while soymeal futures are $4.00 lower. Soyoil is around 30 points higher.
- Soybeans are posting modest corrective gains, despite a weaker tone in soymeal, as soyoil has firmed form earlier losses.
- The 90-day tariff truce agreed by the U.S. and China is too short, China’s state-backed Global Times said, as U.S. Trade Representative Jamieson Greer met Chinese trade envoy Li Chenggang on Thursday at an Asia-Pacific Economic Cooperation meeting on South Korea’s Jeju Island.
- In Brazil, producers are converting pastureland to cropland, which is more profitable than restoring it for grazing livestock, according to University of Illinois agricultural economist, Joana Colussi. Grain production could rise 8% to 11% in the next two years, outpacing the 8% growth in the sown area, though the country faces logistical challenges, limited storage capacity and lack of subsidized crop insurance.
- July soybeans are trading within Thursday’s lower range, as the 200-, 10- and 40-day moving averages, trading around $10.47 and $10.41 1/2 serve up support. Resistance stands at $10.56 3/4.
Winter wheat futures are 8 to 11 cents lower while HRS futures are mostly a nickel lower.
- SRW wheat futures are retreating after three straight days of gains, with technical headwinds easing recent efforts.
- Restricted rainfall is expected in the southwestern U.S. HRW wheat region and in the interior valleys of the Pacific Northwest, according to World Weather.
- China issued a warning about a high risk of dry, hot winds from next Monday to Thursday that could damage winter wheat crops in major growing regions, according to the China Meteorological Administration (CMA). The extreme heat and dry winds could disrupt the grain filling process and cause the wheat to mature too quickly, the agency warned.
- July SRW futures were turned back by the 20-day moving average of $5.33 1/4, while support lies at $5.25 1/4.
Live cattle posting modest gains while feeders are moderately to sharply higher.
- Nearby live cattle are modestly higher in corrective trade following two days of strong selling.
- Cash cattle traded has taken place at steady to firmer prices so far this week. Futures remain at steep discounts to the cash market.
- Wholesale beef values improved on Thursday, with Choice up 54 cents to $349.90 while Select surged $3.33 to $339.18, narrowing the Choice/Select spread to $10.72. Movement was light, however, at only 77 loads.
- June live cattle are facing support at the 20-day moving average of $211.08, while resistance stands at $212.925 and the 10-day moving averages of $213.91.
Hog futures are modestly firmer at midsession.
- Nearby lean hogs have slipped from earlier highs but remains supported by firming cash and wholesale fundamentals as well as a solid technical posture.
- The CME lean hog index is up 24 cents to $91.02 as of May 14, marking a for-the-move high in the climb to what will likely be a summertime high.
- Pork cutout firmed $2.58 to $99.92 on Thursday, led by a $7.66 jump in primal bellies, moving to the top of the extended sideways range.
- June lean hogs are facing resistance at the April 28 high of $101.975, while support lies at the 100- and 20-day moving averages, each trading around $99.14.