Wheat producers: Extend 2025-crop sales, make initial 2026-crop sales... Wheat futures extended to their highest levels in two months. While the technical breakout could trigger more near-term gains, price strength in the face of winter wheat harvest must be viewed as a selling opportunity. We advise all wheat producers to sell another 10% of 2025-crop to get to 30% sold in the cash market. We also advise selling an initial 10% of expected 2026-crop production for harvest delivery next year.
Note: Markets and government offices are closed Thursday for the Juneteenth federal holiday. As a result, there will be no Pro Farmer updates. Grain markets reopen with the overnight session at 7:00 p.m. CT on Thursday, June 19. Livestock markets resume trading at 8:30 a.m. CT, on Friday, June 20.
Corn is mostly 1 to 4 cents higher.
- Corn futures are notching gains amid strong spillover support from the wheat market.
- Timely rain has either fallen or will soon fall in key U.S. crop areas supporting normal crop development, notes World Weather Inc.
- Southern portions of center-south Brazil will receive additional rain over the coming week that will further bolster soil moisture for late-planted safrinha corn, resulting in higher yields. Center-west areas, however, will not see much moisture and crop stress is expected to increase.
- Ethanol production averaged 1.109 million barrels per day (bpd) during the week ended June 13, down 11,000 bpd (1.0%) from the previous week but up 52,000 bpd (4.9%) from last year. Ethanol stocks rose 386,000 barrels to 24.120 million barrels.
- July corn futures are trading within Tuesday’s lower range, with support at last week’s low of $4.29 1/4, while resistance stands at the 10-day moving average of $4.37 1/2.
Soybeans are 1 to 2 cents higher, while soymeal is $1.00-plus higher. Soyoil is modestly lower.
- Soybeans are extending recent gains, with support from corrective strength in meal.
- The Trump administration is moving swiftly to broaden Section 232 tariffs — originally imposed on steel, aluminum, and autos — to cover a far wider range of consumer goods, intensifying trade tensions and raising the stakes for importers and global supply chains.
- China’s move to curb the use of soymeal in animal feed to reduce its dependence on soybean imports is feasible but will be costly and technically challenging for smaller farmers who account for one-third of Chinese pork production, according to industry experts.
- Soybean futures are up against resistance at $10.78 1/4, while support is layered at $10.71 and $10.66 3/4.
Winter wheat futures are 14 to 17 cents higher, while HRS futures are mostly 12 to 13 cents higher
- SRW wheat futures have forged a two-month high amid global production concerns.
- Southern parts of the U.S. Plains are drying down and heating up which is welcome for maturing wheat and harvest. Some crop quality declines occurred earlier this month and in May amid frequent rain and wet field conditions, notes World Weather.
- Krasnodar, one of Russia’s largest grain-producing regions, declared a state of emergency in eight drought-hit municipalities. Earlier in June, Rostov, another large grain-producing region announced a state of emergency in 10 districts. Despite the drought issues, Russian officials expect the country to produce 135 MMT of grain, up from 130 MMT in 2024.
- July SRW futures have surged above the 100-day moving average of $5.60 1/4 for the first time since March, with resistance now at $5.71 1/2. Initial support lies at $5.45 3/4, which is backed by the 10-, 20- and 40-day moving averages.
Live cattle are firmer while feeders are mostly firmer at midsession.
- Live cattle are posting modest corrective gains in the wake of Tuesday’s heavy losses.
- Huge discounts to the cash market is limiting seller interest in nearby live cattle.
- Wholesale beef values continued to soar on Monday, with Choice up $4.40 to $386.51, while Select jumped $5.07 to $372.54. Movement totaled 105 loads.
- June live cattle are trading within Tuesday’s lower range, with support serving at the 40-day moving average of $210.10, while the 20-day moving average of $212.90 now serve as resistance.
Hog futures are posting modest gains at midmorning.
- Nearby lean hogs are firmer, as technical and fundamental support continues to curb sellers.
- The CME lean hog index is up another $1.25 to $104.95 as of June 14, marking the largest daily gain in the string of seasonal strength.
- Pork cutout firmed 41 cents to $119.89 on Tuesday, as strong gains in butts ribs and hams more than offset a $3.56 decline in primal bellies.
- July lean hogs are facing resistance at $112.93, while initial support lie at $111.11 is backed by the 10-day moving average of $110.31.