Corn futures are a penny to 6 cents lower.
- Nearby corn futures are facing pressure from selling in soybeans and a firmer U.S. dollar. Selling is limited in new-crop futures by the lower-than-expected initial crop rating.
- USDA reported 68% of the corn crop was in “good” to “excellent” condition, while plantings stood at 87% as of May 25. Emergence was estimated to be 67%.
- India has proposed significant tariff reductions to the U.S. to avert a looming 26% reciprocal tariff threatened by President Donald Trump, set to take effect on July 9. While New Delhi is open to lowering duties on various goods, it is steadfast in maintaining high tariffs on critical agricultural sectors, particularly foodgrains and dairy products, according to the Financial Times.
- Overnight, Taiwan purchased 65,000 MT of corn expected to be sourced from Brazil.
- July corn futures are testing support at the 20-day moving average of $4.55, with next support at the psychological $4.50 level. Stiff resistance stands at the 200-day moving average of $4.62 1/4.
Soybeans are 9 to 10 cents lower, while soymeal is around $1.00-plus lower. Soyoil is trading around 75 points lower.
- Soybeans are under pressure but continue to trade sideways in consolidative trade.
- USDA reported soybeans were 76% planted as of May 25, while emergence stood at 50%.
- Trump said Tuesday he was “encouraged” by the European Union’s move to accelerate trade negotiations with the United States, following his threat to impose steep 50% tariffs on EU goods. The latest development suggests renewed urgency in U.S./EU trade diplomacy as tariff escalation looms.
- July soybeans dropped below the 20-day moving average around $10.55 1/2. Next support is at the psychological $10.50 mark. Resistance is layered in the $10.63 1/2 to $10.64 range.
Winter wheat futures are fractionally to 2 cents higher, while HRS futures are 8 to 10 cents higher.
- Wheat futures are supported by lower-than-expected crop ratings for winter wheat and spring wheat.
- USDA rated the winter wheat crop as 50% “good” to “excellent” and 19% “poor” to “very poor.” On the weighted Pro Farmer Crop Condition Index (0 to 500-point scale, with 500 being perfect), the HRW crop dropped 5.4 points to 323.0, as all states except Colorado and South Dakota declined. The SRW CCI rating slipped 0.1 point to 374.7. Click here for details.
- USDA initially rated the spring wheat crop as 45% “good” to “excellent,” while plantings were estimated to be 87% complete as of May 25. Emergence stood at 60%.
- India has imposed limits on wheat stocks traders can hold to help boost availability and moderate prices. Traders can hold 3,000 MT of wheat, while retailers can stock up to 10 MT, according to a government notification.
- Australian farmers are set to plant a similar area to wheat as last year, while increasing barley and reducing canola plantings. The median estimate for Australia’s wheat planting shows no change from last year, according to a Reuters poll, as high fertilizer costs and prices near five-year lows discourage more acreage.
- July SRW futures are trading within Tuesday’s lower range. Support lies at the previous session low of $5.27 1/2, which is backed by $5.22 1/2. The 40-day moving average of $5.41 1/4 is resistance.
Live cattle and feeders are mixed at midsession.
- Nearby live cattle have dropped from earlier highs, though the big discount to the cash market is limiting seller interest.
- Cash cattle averaged a record $226.97 last week. That was the sixth straight weekly increase and the fifth consecutive record price.
- Wholesale beef prices were mixed on Tuesday, with Choice up 30 cents to $361.85 and Select down 49 cents to $350.83. Packer margins have improved but remain deep in the red.
- USDA announced a significant escalation in efforts to fight the New World Screwworm (NWS) through a strengthened bilateral strategy with Mexico. USDA will invest $21 million to modernize a fruit fly facility in Metapa, Mexico, which will be converted to produce 60 million to 100 million sterile NWS flies per week — dramatically expanding current capacity and enhancing the reach of the sterile insect technique.
- June live cattle are facing resistance at Tuesday’s high of $216.425, while support lies at the 10- and 20-day moving averages of $213.94 and $213.53, which are backed by $212.94.
Hog futures are posting slight to strong gains.
- Nearby lean hogs have mildly firmer amid improving wholesale values and persisting cash gains.
- The CME lean hog index is up another 11 cents to $93.05 as of May 23, extending the seasonal climb.
- Pork cutout also firmed $2.27 to $103.73 on Tuesday, fueled by a $7.48 rise in primal bellies, rising to the highest level since early November.
- June lean hogs have extended above the 20-, 100- and 10-day moving averages, layered from $98.85 to $99.48, with resistance now at $100.40. Initial support remains at $98.10.