Corn futures are around 6 cents lower at midmorning.
- Corn futures are weaker for the third straight session amid optimism around production prospects.
- USDA reported daily sales of 120,000 MT to Mexico. Of the total, 30,000 MT is for delivery during 2026-27 and 90,000 MT during 2027-28.
- President Trump on Tuesday evening said a deal on the Strait of Hormuz is possible as early as today, as expectations build for an arrangement that allows for the reopening of the crucial waterway for energy markets. “It could happen. Tomorrow or the next day,” Trump told reporters in Los Angeles on Tuesday night, according to Bloomberg.
- The average ethanol content of gasoline sold in the U.S. hit a record 11.29% in May as petroleum prices reached their highest monthly averages of the Iran War, Renewable Fuels Association Chief Economist Scott Richman said Tuesday, citing Energy Information Administration figures. For the 12 months through May, the ethanol blend rate in U.S. gasoline rose to 10.57%, the highest annual share ever.
- September corn futures are facing support at the 40-day moving average of $4.35 ¾, while resistance is at the 20-, 10-, 200- and 100-day moving averages, layered from $4.47 1/2 to $4.55 1/4.
Soybeans are 7 to 8cents lower, while meal is around $3.00 lower. Soyoil is 55 points lower.
- Soybeans are facing followthrough weakness amid improving weather across much of the Midwest.
- Milder temps and some periodic showers and thunderstorms in all of the U.S. Midwest are expected in the Midwest over the coming ten days, notes World Weather Inc. Crop stress in the northwest has been reduced, although more soil moisture deficits will remain and that region will need to be closely monitored for dryness and crop stress later in August when warming returns.
- China’s Sinograin sold about 67% of the 501,000 MT of imported soybeans offered at its second auction in recent weeks on Wednesday. Traders told Reuters they expect the state stockpiler to continue holding auctions in the coming weeks, as China is expected to meet a commitment to buy 23 MMT of U.S. soybeans annually through 2028.
- September soybeans are testing support at the 40- and 100-day moving averages, with additional support serving at $11.66 3/4. Resistance stands at $11.81 and is backed by the 10- and 20-day moving averages.
Winter wheat futures are 7 to 9 cents higher, while HRS futures are 4 cents higher.
- SRW wheat futures are firmer in consolidative trade as solid technical support continues to limit extended selling efforts.
- Planting efforts in Argentina have been advancing well, while southern Brazil wheat planting is virtually complete, according to World Weather Inc. Northern crops have developed well, though there is concern that too much rain will negatively impact southern Brazil crops later this spring.
- Britain’s cereal harvest is on track to be the worst since records began in 1984, according to an analysis published on Wednesday, as crops face the driest and hottest spring-summer periods on record, notes Reuters.
- September SRW futures continue to trade within resistance at the 10- and 20-day moving averages, each trading around $6.60 and the 40- and 100-day moving averages, each trading around $6.32.
Live cattle are firmer while feeders are mixed at midsession.
- Nearby live cattle futures are modestly firmer in consolidative trade as traders pause in the wake of recent strength.
- Boxed beef firmed on Tuesday, with Choice up $2.92 to $369.65 and Select up $2.05 to $346.50. Movement was notable at 120 loads.
- August live cattle are facing resistance at $232.89, while the 20-day moving average, trading at $229.56 is initial support.
Hog futures are lower at midday.
- Nearby lean hogs are notably lower as wholesale fundamentals are weakening in tandem with cash.
- The CME lean hog index is down 51 cents to $97.17 as of August 3.
- The pork cutout value fell $1.98 to $99.83 amid declines in all cuts. Movement totaled 276.3 loads for the day.
- August lean hogs gapped lower at the open, with support now serving at the June 10 low of $93.975. Resistance stands at $97.47, which is backed by the 40-day moving average.