Corn is 1 to 2 cents lower at midmorning.
- Corn futures are favoring the downside ahead of USDA’s supply and demand update at 11:00 a.m. CT.
- Analysts expect USDA to peg 2024-25 corn ending stocks at 1.353 billion bu. (1.365 billion bu. In June) and 1.720 billion bu. for 2025-26.
- Rain is still predicted in most U.S. crop areas during the coming 10 days with some of it heavy at times especially early to the middle of next week as unusually colder air moves southward from Canada into a warm and humid environment in the central and eastern states.
- Union Pacific Railroad (UP) will open its new Kansas City, Kansas, intermodal terminal on July 15, offering 30% more lift capacity than the facility it replaces. The upgraded terminal, located about 10 miles from the current site, features direct highway access, stacked container operations, more parking, expanded rail tracks, widened roads and automated gates. It will handle both domestic and international containerized grain shipments.
- September corn futures are trading within Thursday’s lower range, with support at $3.96 3/4, while resistance stands at $3.98 1/2 and $4.02 3/4.
Soybeans are 2 to 4 cents lower, while meal futures are around $1.00 lower. Soyoil is around 40 points higher.
- Soybeans are modestly weaker amid returned selling in meal, though soyoil strength is curbing greater selling interest.
- Analysts expect USDA to peg 2024-25 soybean ending stocks at 358 million bu. (350 million bu. In June) and 302 million bu. for 2025-26.
- Secretary of State Marco Rubio said the likelihood of a summit between President Donald Trump and Chinese President Xi Jinping later this year is “high,” following what he called “very constructive and positive” talks with Chinese Foreign Minister Wang Yi in Kuala Lumpur. This marks the first in-person meeting between the two diplomats since Rubio took office in January. While major disagreements remain, both sides highlighted potential areas for cooperation as well as continued challenges in the U.S./China relationship.
- Rubio also met Japan’s foreign minister and South Korea’s first vice foreign minister in Malaysia on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit to discuss regional security and a strengthening of their “indispensable trilateral partnership” in areas such as critical technologies and supply chains, a U.S. State Department statement said.
- August soybean futures have found support at $10.04 3/4 for the second straight session, while resistance stands at $10.17.
Winter wheat futures are mostly 4 to 8 cents lower, while spring wheat is fractionally lower.
- SRW wheat futures are weaker amid a pullback from yesterday’s gains.
- USDA will issue its first all-wheat crop production estimate in the Crop Production Report. All wheat production is expected to be 1.915 billion bu. (1.921 billion bu. in June).
- Wheat ending stocks are expected to be 895 million bu. for 2025-26 (898 million bu. in June).
- World Weather expects unusually cold weather in the central United States and south-central Canada during the coming week to 10 days.
- December SRW futures continue to face resistance at the 40- and 20-day moving average of $5.75 1/4 and $5.76 1/4, which are backed by $5.80. Initial support lies at yesterday’s low at $5.41.
Live cattle and feeders are posting sharp gains at midsession.
- Nearby live cattle futures continue to surge amid solid fundamental support.
- Given the steep discount to the cash market, traders continue to view price breaks as a buying opportunity.
- Wholesale beef values dipped on Thursday, with Choice down $1.79 to $384.66, while Select fell $2.41 to $370.86. Movement was light at only 69 loads.
- August live cattle futures have extended to a new record high of $223.30, with resistance now at $224.94. Initial support lies at $219.64.
Hog futures are mostly firmer at midmorning.
- Nearby lean hogs are firmer in consolidative trade, as technical resistance curbs momentum.
- The CME lean hog index is up a dime to $107.14 as of July 9, ending a seven-day skid that saw prices fall $4.98.
- The pork cutout value rose $2.09 to $114.15, though movement was light at 208.4 loads.
- August lean hogs are testing the 10- and 40-day moving averages, both trading around $107.20. Support lies at $105.33.