Corn futures are 8 to 9 cents higher at midmorning.
- Corn futures have posted fresh highs, with support from strong gains in wheat futures as geopolitical and production risks loom.
- The U.S. widened the scope of its airstrikes on Iran overnight, as President Trump and officials in Tehran signaled a renewal of peace talks is unlikely in the near-term. “American forces struck a military site near the north-western city of Tabriz, according to Iranian media, the first time the area is thought to have been hit since hostilities between the warring sides worsened two weeks ago,” said a Bloomberg report.
- Four more tankers changed course in the Red Sea on Wednesday after Iran-aligned Houthis in Yemen threatened the southern route, highlighting a new risk to global oil supplies from the intensifying war between the U.S. and Iran, according to Reuters.
- Western Europe is still much too dry, though excessive heat should subside this week and that should help, but a good soaking of rain in France, the U.K. and into northwestern Germany is needed, notes World Weather Inc.
- Anec estimates Brazil’s corn exports will reach 3.77 MMT in July versus its previous estimate of 3.44 MMT.
- September corn futures are now facing resistance at $4.64, while support is layered at $4.50 1/2 and $4.47 1/2, which are backed by the 10-, 40- and 20-day moving averages.
Soybeans are 13 to 14 cents higher, while meal is around $6.00 higher. Soyoil is 70 points higher.
- Soybeans have marked fresh highs, while meal and soyoil edge higher in tandem as traders build risk premium.
- The eastern Dakotas and northeastern Nebraska into northwestern Iowa and western Minnesota should see the poorest conditions for crops as soil moisture is mostly marginal to short and the region will not see much rain of significance through at least ten days, notes World Weather Inc.
- Anec estimates Brazil’s soy exports are seen reaching 13.5 MMT in July, versus its previous estimate of 13.76 MMT.
- August soybeans have carved a fresh near-term high, with resistance now serving at $12.36 1/2, while support lies at $12.16 1/2 , then at the 10-day moving average, trading at $12.04 1/4.
Winter wheat futures are 23 to 28 cents higher. HRS futures are mostly 20 cents higher.
- SRW wheat futures have notched a more than two-year high as tensions in the Black Sea and Middle East stir buying interest across commodities.
- Russia has restricted its shipping access to certain Sea of Azov and Kavkaz ports while continuing its own strikes on Ukrainian port infrastructure, as Ukraine launched drone attacks on warehouses operated by Wildberries, reports TradingEconomics.com.
- Crop scouts on the first day of an annual three-day tour of North Dakota’s hard red spring wheat crop projected an average yield in the southern portion of the state at 46.0 bushels per acre. The estimate, released on Tuesday evening, was below the Wheat Quality Council tour’s estimate of 50.0 bpa, but above the five-year average of 45.8 bpa.
- World Weather reports spring wheat areas in the U.S. northern Plains and southern Canada’s Prairies are stressed and losing some yield potential and the lack of rain and continued warm to hot weather over the next ten days will perpetuate this trend.
- September SRW futures have carved a fresh high, with resistance now standing at $7.39 1/4, while support lies at $6.74, which is backed by the 10-day moving average.
Live cattle and feeders are notably lower at midsession.
- Cattle futures are under pressure as wholesale fundamentals continue to slide, while strong technical resistance limits buyer interest.
- Cash cattle trade remains slow to develop this week, which is typical ahead of USDA’s release of its Cattle on Feed reports. Cold Storage data is also due out on Friday.
- Boxed beef slid on Tuesday, with Choice down $3.19 to $366.91 and Select down $1.22 to $354.23. Movement improved to a notable 161 loads.
- August live cattle have taken out Monday’s low, but continue to face support at $224.39 and $223.28. Resistance stands at $226.64, which is backed by the 10- and 200-day moving averages.
Hog futures are firmer at midday.
- Lean hogs are modestly firmer, with solid fundamental support, though technical resistance continues to curb near-term momentum.
- The CME lean hog index is up 48 cents to $96.64 as of July 20.
- The pork cutout value rose $1.72 on Tuesday, led by gains in primal bellies, ribs and hams. Movement totaled 254.9 loads.
- August lean hogs are facing resistance at this week’s high of $102.375, which is backed by the 200- and 100-day moving averages, while support lies at Tuesday’s close of $101.50, which is backed by the 10-, 20- and 40-day moving averages.