Corn is mostly a penny to 3 cents higher.
- Corn futures are posting modest corrective gains after three straight days of selling.
- The National Weather Service reports the Midwest will finally cool down to end the week, with daily high temperatures in the 70s over much of the region. However, Iowa and Illinois will see more strong to severe storms today, after Iowa was hit with heavy rain and storms overnight.
- Ethanol production averaged 1.096 million barrels per day (bpd) during the week ended July 25, up from 1.078 million bpd the previous week, but down from 1.109 million bpd in the same week last year. Ethanol stocks rose to 24.7 million barrels, up from 24.4 million barrels the previous week and 24.0 million barrels year-ago.
- September corn is holding an inside range, with support at this week’s low of $3.87 3/4, while resistance stands at $3.93, then the 10- and 20-day moving averages.
Soybeans are mostly 7 to 8 cents lower, while soymeal is around $2.0 lower. Soyoil is mostly 30 points lower.
- Soybeans continue to be led lower by meal futures.
- President Trump on announced tariffs on India at 25%, the upper end of what was expected. Trump recently noted “India has been a good friend, but India has charged basically more tariffs than almost any other country. You just can’t do that.”
- Indian importers have bought a record 150,000 MT of soyoil from China in a rare purchase, as a supply glut prompted Chinese crushers to sell at a discount to India’s typical suppliers from South America.
- August soybean futures have carved a fresh for-the-move low, though support continues to serve at $9.75 1/2, which is backed by the December low of $9.64. Resistance stands at $9.83.
SRW wheat futures are mostly a penny to 2 cents lower, while HRW futures are 3 to 4 cents higher. HRS futures are fractionally higher.
- SRW wheat futures are posting light followthrough selling amid continued pressure from the U.S. dollar.
- Bangladesh’s government has approved the purchase of around 220,000 MT of wheat from the U.S. as an effort to cool trade tensions and reduce steep import tariffs.
- Drier weather in Brazil will improve some of the wheat planting and establishment, while rains over the next two weeks will be good for emergence, according to World Weather Inc.
- Torrential rains across western, northern and central Ukrainian regions have significantly slowed the harvest, causing a drop in export rates, according to producers’ union UAC. Forecasters are predicting more rain this week, which will continue to delay harvest.
- December SRW futures are facing support at $5.44 1/2, which is backed by the May low of $5.43 3/4. Initial resistance stands at $5.51 3/4.
Live cattle and feeders are firmer at midsession.
- Nearby live cattle are modestly firmer as supply fundamentals continue to spur buying.
- Cash trade remains slow to develop, though steep futures’ discounts to cash should continue to limit sellers.
- Choice boxed beef fell $3.54 to $364.19 on Tuesday, while Select slid $4.37 to $342.48. Movement totaled 118 loads.
- August live cattle are trading within Tuesday’s upper range, bound by resistance at $231.475 and support at $228.80.
Hog futures are mixed at midmorning.
- Nearby lean hogs are extending losses for a third straight session amid fading technicals and wholesale fundamentals.
- The CME lean hog index is up another 13 cents to $110.45 as of July 28.
- The pork cutout value fell $2.44 to $115.85 amid declines in all cuts except primal hams. Movement totaled 291.1 loads.
- August lean hogs are facing support at the 20-day moving average of $106.60, while the 10-day moving average of $107.43 is resistance.