Corn futures are 3 to 4 cents higher at midmorning.
- Corn futures are seeing short covering as they bounce from fresh contract lows.
- Reuters reported shipping company Maersk along with others are eyeing ethanol as a source of fuel for commercial maritime vessels in the near future, citing lower costs and the ability to help the companies meet emission standards.
- Brazil will receive widespread rain in the coming week, delaying crop maturation and harvest, according to World Weather Inc.
- July corn futures are facing resistance around yesterday’s open of $4.19, with firmer resistance at the 10-day moving average of $4.24 1/4. Futures are finding support from Monday’s low of $4.12 1/2, and below that at the psychological $4.10 mark.
Soybeans are 1 to 4 cents higher, while soymeal is $1.00 to $2.00 higher, and soyoil is 30 to 50 points lower.
- Soybean futures are just slightly firmer due to spillover gains in corn and wheat following a mostly neutral WASDE report yesterday.
- South Koreas’s major Feedmill Group purchased an estimated 45,000 to 60,000 metric tons of soymeal in an international tender.
- El Nino may cut crop yields in Malaysia by 8 to 10 percent according to the country’s economic minister. Malaysia is a top world producer of palm oil, a competitor of soybean oil.
- July soybeans are finding support at this week’s low close of $11.13 3/4 with firmer support at the $11.00 psychological mark. Resistance is at Friday’s close of $11.21 1/2, with firmer resistance at the 10-day moving average of $11.33 1/2.
Winter wheat futures are 4 to 7 cents higher while HRS futures are around 1 to 3 cents higher.
- Price action is slightly firmer in winter wheat with HRW leading, following yesterday’s WASDE that saw lower U.S. production but higher global ending stocks.
- USDA’s Crop Production Report put HRW production at its lowest since 1957, with all winter wheat production at its lowest since 1965.
- France Agrimer said in a weekly report that the country’s SRW crop has improved slightly, with 77% of crops now in good to excellent conditions, following rains in recent days.
- July SRW futures are finding support at last week’s close of $5.80, and are currently testing resistance at the 10-day moving average of $5.91 1/2, then the 100-day moving average and psychological resistance of $6.00.
Live cattle and feeders are lower at midmorning.
- Cattle futures are experiencing mild profit taking after consecutive days of gains.
- The number of screwworm cases now stands at 9, with 6 of those confirmed in cattle.
- Choice boxed beef fell 8 cents yesterday to $393.21, with select falling$2.46 to $373.25. The choice select spread is currently $19.96.
- August feeder cattle futures are facing initial resistance at the 100-day moving average of $358.15. Support is found in the 10-day moving average of $352.48.
Hog futures are firmer at midday.
- Lean hog futures are higher as they continue to bounce off seven-month lows.
- The most recent CME lean hogs index is down 2 cents to $92.90.
- Pork cutout fell $1.49 yesterday to $94.47. Movement was solid at 248 loads.
- August lean hogs face resistance at this Monday’s close of $97.375, with firmer resistance at the 10-day moving average of $98.82. Futures are finding support from the late-November lows in the $95.00 area.