Old-crop corn is around 3 cents higher, while new-crop is around a penny higher.
- Nearby corn futures are seeing modest spillover strength from sharp gains in soybeans.
- EPA proposed record RFS levels in a release this morning that supported soybeans. The mandate would remain at 15 billion gallons for conventional corn-based ethanol for both years, providing corn little catalyst.
- The Buenos Aires Grain Exchange left their corn crop estimate unchanged at 49 MMT in their most recent report.
- Israeli strikes on Iran, the world’s #3 urea supplier, has sent fertilizer costs sharply higher. A closure of the Strait of Hormuz could further fuel input costs higher if the conflict escalates.
- July corn futures are poking above the 10-day moving average, which has been a key resistance level. Bulls are seeking to hold prices above that mark at $4.40 1/2. Resistance stands at $4.45 on continued strength.
Soybeans are 19 to 22 cents higher, while soymeal is around $2.5 lower. Soyoil futures are limit up.
- Soybeans are sharply higher following higher than expected biomass diesel RVO recommendations from EPA.
- EPA released a plan that would set a 2026 mandate for 5.61 billion gallons of biomass-based diesel typically made from soybeans and used cooking oil — representing a 67% jump from the 3.35 billion gallons required this year. There are incentives in place to use domestic feedstocks rather than imported.
- With harvest 93% complete and yields running higher than expected, the Buenos Aires Grain Exchange raised its Argentine soybean crop estimate 300,000 MT to 50.3 MMT.
- July soybean futures are sharply higher and trading above downtrend resistance, which stands as a key line in the sand at $10.57. Resistance stems from the $10.70 mark on continued strength.
Winter wheat futures are around 10 to 13 cents higher, while HRS futures are 7 to 8 cents higher.
- Winter wheat futures are posting strong gains this morning, following the soybean market higher.
- Japan’s chief tariff negotiator, Ryosei Akazawa, has categorically rejected the possibility of a partial trade agreement with the U.S., stating that Tokyo will only accept a comprehensive package that addresses all outstanding issues between the two countries.
- USDA has been slow to update their Chinese wheat production estimate despite the ongoing drought in key production areas. USDA continues to anticipate record production of 142 MMT and a record yield of 6.0 MT/ha, both of which seem far-fetched.
- July SRW futures are looking to topple 40-day moving average resistance at $5.40 1/2. Added strength finds resistance at $5.44. Support comes in at $5.34 1/4 on a reversal lower.
Live cattle and feeders are sharply lower at midsession.
- Nearby live cattle are undergoing sharp selling pressure amid a risk-off tone in the general marketplace that has traders and funds alike seeking to lower their risk across all assets.
- Cash cattle trade has averaged $237.09 so far this week, with record trade taking place in the northern and southern markets. A large disparity persists between the two regions, leading to apparent choppy cash trade.
- Wholesale beef prices continue to charge higher, though have done little to offset the historic gains in the cattle market. Choice cutout rose another $1.96 to $376.72 Thursday, while Select gained $2.32 to $363.07.
- August live cattle are testing uptrend support at $213.00. A break below that mark finds little support until $210.00. Resistance stands at $215.15 on a reversal back higher.
Hog futures are modestly lower at midmorning.
- Hog futures are facing consolidation amid ongoing risk-off trade in the general marketplace, though nearby June futures are seeing relative strength before going off the board at noon.
- The CME lean hog index is up another 84 cents to $101.75 as of June 11. July and August futures settled Thursday $7.15 and $8.425 above that mark, respectively.
- Pork cutout continues to march higher, rising another $1.42 to $114.50 on Thursday, led by strength in bellies, hams and butts.
- July lean hogs are seeing profit-taking today, though prices remain in a steep uptrend. Support stems from $107.25 on continued selling. Bulls are looking to break prices back above resistance at $108.90.