Corn is mostly 1 to 2 cents higher at midmorning.
- Corn futures are modestly higher amid short-covering following Tuesday’s selloff.
- China’s finance and ag ministries have allocated 1.1 billion yuan ($153.34 million) in disaster relief funds for stabilizing grain production in major grain producing regions, according to state broadcaster CCTV.
- December corn futures are trading within Tuesday’s lower range, with support at the previous session low of $3.94. Resistance continues to stem from the 10-, 20-, 40-, 100- and 200-day moving averages, layered from $4.04 3/4 to $4.40 1/2.
Soybeans are 4 to 5 cents higher, while soymeal is around $2.50 higher. Soyoil is around 15 points lower.
- Soybean futures have backed off earlier highs but continue to post followthrough strength in the wake of USDA’s production update.
- U.S. Treasury Secretary Scott Bessent said Tuesday that U.S. trade officials will reconvene with their Chinese counterparts within two to three months to discuss the future of bilateral trade between the world’s two largest economies. His comments followed this week’s extension of a 90-day tariff truce between the two nations, which temporarily averts more duties on each other’s goods.
- U.S. weather through Monday will be driest from Iowa, Illinois and Indiana into the northern Delta, Missouri and eastern Kansas. Subsoil moisture will carry on normal crop development, though, timely rain will be needed soon to protect soybean and other late-season crop production potential, according to World Weather Inc.
- Chinese importers have finished booking soybean cargoes for September, taking around 8 MMT, all from South America, according to Reuters.
- November soybeans have filled the early July gap, with resistance now serving at $10.47 1/4. Meanwhile, support lies at the 200, 100, 40, 20 and 10-day moving averages, layered from $10.25 1/2 to $10.01 3/4.
SRW wheat is mostly unchanged to a penny higher, while HRW is around a penny to 2 cents lower. HRS futures are mostly 1 to 2 cents firmer.
- SRW wheat futures are slightly firmer amid support from a weaker U.S. dollar, though technical resistance continues to limit buyer interest.
- Drying in France, southern parts of the U.K. and the lower Danube River Basin has already cut into production potentials and more of the same is expected for much of the next ten days resulting in more crop stress especially as temperatures trend warmer than usual.
- World Weather reports southern and eastern Ukraine and Russia’s Southern Region are too dry for optimum summer crop development in unirrigated fields.
- South Korea purchased an estimated 50,000 MT of milling wheat to be sourced from the U.S. in an international tender.
- December SRW futures carved a new contract low, though support continues to serve at $5.21 1/2. The 10-day moving average of $5.33 3/4 is initial resistance.
Live cattle and feeders are solidly higher at midsession.
- Nearby live cattle are notably firmer with support from surging wholesale values.
- Cash cattle trade has been slow to develop this week, with no trade thus far.
- Wholesale beef values surged on Tuesday, with Choice up $9.06 to $390.58, while Select rose $6.03 to $365.64. Movement totaled 105 loads.
- August live cattle gapped higher at the open, but are up against resistance at $238.78, which is backed by last week’s record high of $239.475. Meanwhile, support lies at Tuesday’s close of $235.825.
Hog futures are weaker at midmorning.
- Nearby lean hogs have scored a new for-the-move high, with help from cattle, though fading cash fundamentals and a strong drop in cutout are negating some optimism.
- The CME lean hog index is down 23 cents to $110.02 as of Aug. 8.
- The pork cutout value slid $4.39 on Tuesday to $114.70 amid notable declines in all cuts except primal ribs. Movement increased to 411.4 loads.
- August lean hogs gapped lower at the open, but support lies at $109.36, while resistance is layered at the intraday high, then at $109.69.