Corn futures are mostly a nickel higher at midmorning.
- Corn futures are firmer in corrective trade, in tandem with SRW wheat and soybeans.
- The U.S. agricultural sector needs to “explore new pathways to reignite growth in farm communities, drive innovation and expand agriculture’s capacity to feed and fuel the world using fewer resources,” said a compelling report released by S&P Global. “Under a scenario where biofuel demand expands, U.S. agricultural production remains strong and continues to serve as a secure, ample, and reliable long-term supplier of corn, ethanol, and other agricultural products to domestic and international markets,” said S&P Global.
- Ethanol production during the week ended June 12 averaged 1.102 million barrels per day, that was down 0.5% from the previous week and 0.6% from year-ago. Ethanol stocks were steady on the week at 24.474 million barrels.
- Taiwan’s MFIG purchasing group bought about 65,000 Mt of animal feed corn expected to be sourced from Brazil in an international tender on Wednesday, according to European traders.
- July corn futures are testing resistance at the 10-day moving average of $4.17, which is backed by resistance at $4.24 1/4 and the 20-day moving average. Support lies at $4.10 1/2 and at this week’s low of $4.06 1/4.
Soybeans are 4 to 5 cents higher, while soymeal is around a dime higher, and soyoil is around 130 points lower.
- Soybean futures are firmer amid evidence of export business, though weakness in soyoil is limiting buyer interest.
- USDA reported daily sales of 372,000 MT of soybeans to unknown destinations. Of the total, 60,000 MT is for delivery during 2025-26 and 312,000 MT is for 2026-27.
- Bloomberg says a reopened Strait of Hormuz may see a rush of grain demand from Asian countries. The report noted that the Gulf is among the world’s most import-dependent food markets, relying on overseas supplies for around 90% of its food consumption. Iran ranks among the world’s largest soybean and soybean meal buyers is also a major importer of Brazilian corn.
- July soybeans are up against resistance at the 200-day moving average, trading at $11.37 3/4, while support lies at the 10-day moving average of $11.21 1/2.
Winter wheat futures are 11 to 14 cents higher, while HRW is around 8 to 9 cents higher.
- SRW wheat futures are posting solid gains despite a stronger U.S. dollar amid corrective buying and global production concerns.
- U.S. wheat areas in the Plains and Midwest will be cooler than usual for another week while precip evolves often enough to raise a little concern over quality, notes World Weather Inc. Rain is needed in the U.S. Pacific Northwest and portions of the interior northern Plains.
- World Weather notes portions of France are trending too dry and rain is needed. A ridge of high pressure building over the region this week will perpetuate below normal rainfall and warmer than usual temperatures. The forecaster notes some drying is also expected in portions of central and southwestern Europe.
- South Korea’s Major Feedmill Group purchased around 60,000 Mt of animal feed wheat in a private deal on Wednesday without issuing an international tender, according to Reuters. The wheat was expected to be sourced from the EU/Black Sea region, including Romania, Bulgaria, Serbia or Moldavia. Russia, Belarus and Ukraine were excluded as origins.
- July SRW futures are testing resistance at the 100- and 20-day moving averages, with additional resistance at $6.15 3/4, which is backed by the 40-day moving average. Support lies at $5.94 1/4, then at the 10-day moving average of $5.88 1/4.
Live cattle and feeders are lower at midsession.
- Cattle futures are correctively weaker as traders pause in the wake of Tuesday’s strong gains.
- The USDA Animal and Plant Health and Inspection Service (APHIS) on its NWS website is still reporting 12 total New World screwworm detected cases, in Texas and New Mexico.
- Boxed beef edged higher on Tuesday, with Choice up $3.12 to $395.05 and Select up $3.69 to $376.41. Movement was light at 68 loads.
- August live cattle have marked a new for-the-move high, but remain limited by resistance a the May 1 high of $251.65. Initial support lies at $247.20, then at $244.95, which is backed by the 40-, 10-, 20- and 100-day moving averages.
Hog futures are firmer at midday.
- Lean hog futures are posting solid gains but remain technically challenged while cash and wholesale fundamentals continue to wane.
- The CME lean hog index is down another 16 cents to $91.93 as of June 15.
- The pork cutout value fell $1.55 on Tuesday to $95.57 amid declines in all cuts. Movement totaled 291.1 loads.
- August lean hogs continue to face resistance at the 10-day moving average of $96.20, while support lies at $94.51 then at the June 10 low of $93.975.